Continental Resources Aggressively Cuts Costs

EOG Releases 2015 Q1 Report
Continental Resources: 2015 Q1

Continental Resources announces first quarter results that highlights increases in production and reduced costs.

Related: Harold Hamm Gains More Bakken Acreage

In a press release on May 6th, Continental reported a net loss of $132.0 million for the first quarter of 2015 and a production increase to 206,829 boed.

Most impressive is the company’s drilling and completion costs , which fell by 15% since 2014 year end. The company expects to see service cost reductions of up to 20% by mid-year and further savings from drilling and completion efficiencies. One example of these efficiencies is the new company record for drilling in the Bakken as they report drilling the two-mile lateral portion of a well in three days, nearly four days faster than its average time to drill a lateral.

Bakken Highlights for First Quarter

  • Production averaged 135,538 Boe per day (39% increase over first quarter 2014)
  • Completed 66 net wells
  • Operated an average of 13 rigs in the Bakken, down from 19 rigs at year-end 2014
  • Significantly reduced its completion crew count
  • 115 gross operated Bakken wells drilled and waiting on first production (122 at year-end 2014)

Continental’s plans for Bakken moving forward

  • The Company plans to average 10 operated rigs through the remainder of 2015, based on current market conditions.
  • The Company expects to have approximately 90 gross operated Bakken wells drilled and waiting on first production at year-end 2015.
  • Approximately 60% of the wells in the 2015 program will be drilled on 660-foot to 880-foot inter-well spacing in the Middle Bakken and Three Forks reservoirs.
  • The Company's 2015 Bakken drilling program is targeting an average EUR of approximately 800,000 Boe per well.

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