The Mississippian Lime: America's Next Big Resource Play

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The Mississippian Lime: America's Next Big Resource Play
By Braden Holt

There's no doubt that shale plays are sexy in the oil and gas realm these days, but prudent investors know all that really matters is return on investment. Valuations are high in South Texas' Eagle Ford Shale, where private equity firm Kohlberg, Kravis, Roberts & Co (KKR) recently agreed to pay $25k per acre in a participation agreement for up to 1/3 of Comstock Resources' (CRK) undeveloped Eagle Ford acreage. In North Dakota's Bakken Shale, Bakken pure-play Kodiak Oil & Gas (KOG) paid $11,800 per acre in a deal late last year with two private companies. If investors are looking for a value play, they should turn their heads to the Mississippian Lime, where acquisition prices averaged $3,284 per acre1 during the past year.