Continental Resources, Inc. has released a production update.
- Bakken net unrisked resource Potential Totals 4.1 billion boe, more than 17x greater than current Bakken proved developed reserves.
- Updated SCOOP EUR and returns provide exceptional platform for continued growth.
- New Oil Discovery in Springer Shale located in the heart of SCOOP.
- Increasing capital expenditures in second half of 2014 for higher operated rig count in Springer Shale and expanded enhanced completions in Bakken.
- 2015 production growth guidance of 26% to 32%.
- Detailed geologic and reservoir studies suggest Continental's Bakken net unrisked resource potential totals approximately 4.1 billion boe in addition to the Company's proved developed reserves of approximately 240 million boe.
- Successful well density tests conducted during 2013 and 2014 indicate optimal well density for full development of the Bakken Petroleum System on average should include seven to nine wells in the Middle Bakken Formation (MB), seven to nine wells in the Three Forks One Formation (TF1) and three to five wells in the Three Forks Two Formation (TF2) in each of their productive fairways.
- The Company executed an expansive enhanced completion program across its vast leasehold position in the Bakken. Early results suggest an approximate 25% uplift in production and similar potential uplift to economic ultimate recovery (EUR). The Company is seeing the most favorable results utilising a hybrid completion design, which includes greater proppant volume (approximately 200 000 pounds per stage) and a combination of slickwater and crosslinked gel fluids.
- Based on additional leasehold acquired and two years of delineation and exploration drilling, Continental estimates its South Central Oklahoma Oil Province (SCOOP) net unrisked resource potential has increased to approximately 3.6 billion boe, nearly the size of its Bakken opportunity.
- The updated SCOOP Woodford type curve EUR is 1.725 million boe in the condensate fairway and 655 000 boe in the oil fairway. Both are based on a 7500 ft horizontal lateral length.
Exploration Discovery: Springer Shale
- Continental's exploration team does it again - the Company is announcing a new oil discovery, the Springer Shale, located in the heart of the SCOOP.
- The original discovery well and two subsequent confirmation wells have cumulative production of approximately 640 000 boe in the 20 months following the original discovery well. Continental currently has 11 producing wells in the oil fairway of the Springer Shale with an average 24-hour initial production (IP) rate of 1,140 Boe per day and an average 30-day IP of 700 boepd.
- Initial Springer Shale oil fairway production data suggests an EUR of 940 000 boe, with 67% oil and 17% natural gas liquids, for an average 4500 ft lateral length.
2014 and 2015 Guidance:
- With the success of the enhanced completion testing program in the Bakken and the exceptional returns achieved in the new Springer Shale oil discovery, the Company is accelerating drilling and completion capital expenditures in the second half of 2014 for a total full-year estimate of US$ 4.55 billion in 2014 and US$ 5.2 billion in 2015. Going forward, a majority of the Company's Bakken wells will incorporate enhanced completions, and completed well costs are expected to average approximately US$ 10 million per well. This is an increase of approximately US$ 2 to US$ 2.5 million above the Company's standard completion design cost from year-end 2013. The Company plans to average eight operated rigs in the Springer Shale for the remainder of the year, an increase from just one rig earlier in the year. This acceleration will have limited impact on overall 2014 production results, given only a quarter of the year is remaining and the lag between capital expenditure and resulting production. However, the Company estimates exiting 2014 at net production of approximately 200 000 boepd, an increase from previous internal projections.
Adapted from a press release by David Bizley
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