Contintental Resources Stays the Course in Bakken & SCOOP

CLR enhanced completions

Contintental Resources Stays the Course in Bakken & SCOOP

Like many other Bakken E&P’s, Continental Resources (NYSE: CLR) activity slowed in the second half of 2015.The company will continue to invest in Bakken and SCOOP, but do not expect Continental’s production growth to continue as the company plans to release rigs in Bakken and SCOOP. The chart below shows drilling permits and completions for the Bakken, Continental’s key asset.

energent-clr-bakken-activitySource: Energent Group

 Bakken: Enhanced Completions Improve EUR

  • Current well costs are down 27% to $7 million per well
  • Decrease in drilling days
    • Reduction of 26% in lateral drilling days
    • 15% decrease is drilling days – spud to TD
  • Enhanced completions have seen 34% to 48% increase in 90-day production rates
  • Oil production was down to 65% of total production due to deferred completions in the Bakken
  • 2016 will start with eight rigs and then the operator has the option to drop to three rigs once contracts expire on five of the eight running

CLR enhanced completions

Source: Continental Resources Presentation

SCOOP Woodford: Well Cost Down to $9.6 million

  • 45% reduction in drilling costs with 48% reduction in spud to TD since Q1’15
  • Well costs decreased by 21% to $9.6 million
  • Completed Honeycutt density pilot
    • 9 wells had combined peak production rates of 93,271 Mcf/d and 9,058 Bopd
    • Using 513 ft. spacing
  • Seven wells awaiting completion as of November 2015 in Grady county

SCOOP Springer: Deferring Development Until Prices Return

  • Completed 6 net wells in Q3’15
  • Deferring asset development until higher commodity price environment

What’s Next for Continental Resources

  • Uncompleted well level will be flat from 2014 to 2015
  • Full 2016 guidance is expected in early January 2016
  • Production continues to flatten out in 2016

energent-clr-oil-production-growth

Source: Continental Resources Presentation

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