Continental Resources' first quarter production averaged 76,900 boe/d net or 63% of company-wide production.
Gross operated production surpassed a significant milestone at more than 100,000 boe/d.
The company is targeting well costs of $8.2 million by year-end 2013 and is well on its way to that goal after spending $8.3 million per well in the first quarter. Expanded use of pad drilling should continue to drive costs down.
“Our production growth remained strong despite seasonal challenges in the Bakken. We continue to monitor oil differentials and transportation costs to ensure we realize the most attractive pricing for our premium Bakken oil.”
Highlights from the quarter include:
- Production growth of 14% over the fourth quarter of 2012 and 60% over the first quarter of 2012
- 80% of operated oil production moving by rail
- Operated 22 rigs
- Completed 162 gross (66 net) wells in the quarter
- Have a 80 gross wells drilled and awaiting completion
- Average initial production rates in ND were 1,125 boe/d (84% oil)
- Estimated EURs remained unchanged at 630,000 boe in ND and 430,000 boe in MT
- Successful Lower Three Forks completions in the quarter have expanded the aerial extent of the play.
Continental currently has six producing wells in the lower benches of the Three Forks with average initial production rates of approximately 1,170 Boe per day.
The number of wells drilled and awaiting completion will fluctuate as Continental expands its pad drilling operations.
Mr. Bott added, "Quarter after quarter, our Bakken operations continue to deliver impressive growth with highly attractive returns. On the exploration front, we are very excited about the continual success of our Lower Three Forks productivity tests. Our cost focus has put us ahead of target on reducing average drilling and completion well costs in the Bakken. Based on field estimates, we are down to approximately $8.3 million in April 2013."
Read the full press release at clr.com