Continental has announced that it has signed a definitive purchase and sale agreement with an undisclosed buyer to sell non-strategic properties in North Dakota and Montana for US$222 million. The sale includes 68 000 net acres of leasehold primarily in western Williams County, North Dakota, and 12 000 net acres of leasehold in Roosevelt County, Montana. The sale also includes net production of approximately 2800 boe/d. The agreement provides for customary closing conditions and adjustments.
"This is our third sale of non-strategic assets this year, with total expected proceeds of more than US$600 million. We plan to apply proceeds to reduce debt and strengthen our balance sheet," said Harold Hamm, Chairman and Chief Executive Officer.
In May 2016, the Company announced the sale of approximately 132 000 net acres of leasehold in the Washakie Basin in Wyoming for US$110 million.
"Our guidance for the year has not changed. The combination of Continental's high quality drilling inventory, strong balance sheet and US$560 million investment in drilled but uncompleted wells (DUCs) provides the Company with a robust platform for high-value future growth," Mr. Hamm said. The US$560 million investment includes both operated and non-operated DUCs, approximately 80% of which are in North Dakota.
Continental currently has approximately 215 gross operated DUCs in inventory, of which approximately 165 are in the Bakken. The Company plans the total to grow to approximately 240 gross operated DUCs at year-end 2016.
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19082016/continental-resources-announces-us222-million-sale-of-non-strategic-assets-2953/