Continental’s Proved Reserves in Bakken Valued at $14.5 Billion – 2013

The Bakken Makes Up 72% of Continental's Net Proved Reserves
Continental 2013 Production

Continental Production | Click to Enlarge

Continental’s proved reserves stretched to more than 1 Billion boe in 2013, with an estimated value of more than $20 billion. The Bakken accounted for 72% of the volume and it’s estimated value.

Continental’s Bakken and Three Forks position contributed 741 million boe to the company’s proved reserves at an estimated value of $14.5 billion.

Within the proved reserve estimates, Continental had 2,330 gross  (1,302 net) PUD (proved undeveloped) drilling locations at the end of 2013. According to the company, the Bakken accounted for about 84% or almost 1,100 PUD locations.

Read moreContinental’s Bakken & Three Forks Density Test Yields Almost 15,000 boe/d

[Read more...]

Continental’s CEO Harold Hamm Wants No Part of Harms’ “Moderated Approach”

Moderating Development After a Slow Down Could Cause Additional Issues
Harold Hamm Continental Resources

Harold Hamm of Continental Resources | Click to Enlarge

Harold Hamm spoke out against Robert Harms’ recent comments regarding a “moderated approach” to oil and gas development in North Dakota in an interview with Forum News Service.

Hamm makes the case that the industry has already slowed down quite a bit from the frantic pace of exploration and is now developing leases in a more orderly fashion.

One example is the Bakken rig count. It’s down almost 20% from the peak. [Read more...]

Continental’s Bakken & Three Forks Density Test Yields Almost 15,000 boe/d

Planning Full Field Development With 20-30 Well Pads in the Antelope Area
Continental Resources Hawkinson Bakken Three Forks Density Test

Continental Resources Hawkinson Bakken & Three Forks Density Test | Click to Enlarge

Continental set a record with third quarter production of 141,900 boe/d. Bakken production grew 7% and accounted for 94,500 boe/d of the total.

Continental operated 20 rigs in the Bakken region during the quarter and grew gross production to almost 120,000 boe/d (94,500 boe/d net). That’s 51% higher than the third quarter of 2012 and even more impressively, Montana production grew 17% over the second quarter. [Read more...]

Oasis Petroleum Is Testing Bakken & Three Forks Well Spacing

Oasis, Continental and Others Looking to Determine Optimal Well Spacing in the Region
Bakken & Three Forks Well Spacing Tests

Bakken & Three Forks Well Spacing Tests | Click to Enlarge

Oasis Petroleum believes the company can drill four Middle Bakken and four Three Forks wells on each 1,280-acre unit, but the future might be more dense drilling than they currently suggest.

Oasis is testing up to seven wells per formation in the Bakken and the first bench of the Three Forks (TFS 1). [Read more...]

Continental Resources’ 2014 Bakken Budget Increases to $2.5 Billion

$500 Million Exploration Budget Will Focus On Well Density Testing in the Bakken & Three Forks
Continental Resources Bakken Three Forks Map

Continental Resources Bakken-Three Forks Map | Click to Enlarge

Continental Resources plans to spend $2.5 billion on development drilling and completions in the Bakken in 2014. That’s a 16% increase from plans to spend $2.15 billion in 2013.

In 2014, the company will run 17 rigs in North Dakota and four rigs in Montana, with plans to drill 886 gross (300 net) wells.

Continental will spend a total of $4 billion in 2014, with $2.5 billion allocated to the Bakken, approximately $900 million allocated in Oklahoma, and $500 million directed to exploration activities. Company-wide production guidance calls for growth of 26-32%, with a 2014 exit rate of 200,000 boe/d. [Read more...]

No Need For Keystone XL – Continental’s CEO Harold Hamm

New Projects Make Keystone XL Irrelevant To The Bakken
Keystone XL Map

Keystone XL Map | Click to Enlarge

Keystone XL might not be needed now that other alternatives are being used to move Bakken oil. That’s the story from Amy Harder at the National Journal. She interviewed Continental Resources’ CEO Harold Hamm and he says “It’s not critical any longer.”

Keystone XL has been delayed due to “environmental” concerns since 2008 when TransCanada first applied for the proper permits. It’s really anyone’s guess as to what will happen now.

Continental has committed to move 35,000 b/d on Keystone XL if the pipe is built, but Hamm isn’t confident the pipeline will ever move Bakken oil. For one, the environmental lobby is against it and other companies are expanding in the region. Hamm’s Hiland Partners is one of the companies with a proposed pipeline. [Read more...]

Harold Hamm On The Oil Boom & Energy Independence

Hamm Is Ready To Celebrate Energy Independence

Harold Hamm, CEO of Continental Resources, submitted an article touching on the importance of energy independence and horizontal drilling. [Read more...]

Samson Oil & Gas Selling Bakken Assets In Montana

30,000 Net Acres In The Roosevelt Project Sold For $13.5 Million
Samson Oil Gas Roosevelt Project Bakken Map

Samson Oil &Gas Roosevelt Project Bakken Map | Click to Enlarge

Samson Oil & Gas is selling 30,000 net acres in the company’s Roosevelt Project in Montana for $13.5 million.

The deal includes the acreage and an interest in the following wells: the Australia II, Gretel II, and Abercombie (Contiental Resources operated).

Samson will use the cash raised to further development of the company’s North Dakota Bakken prospects.

The Roosevelt Project accounted for the bulk of the company’s acreage in the play, but well results must not have been good enough to continue exploring the prospect. The company will now focus its development efforts in its 2,450 net acres in North Dakota. Samson expects to be producing 1,200 net b/d in the Bakken by the end of 2013.

Read the full news release at samsonoilandgas.com

Continental Resources’ Bakken Production Surpasses 100,000 boe/d (Gross Operated)

Bakken Well Costs Down To $8.3 Million
Continental Resources Bakken Shale Map

Continental Resources Bakken Shale Map | Click to Enlarge

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. [Read more...]

Continental – PBF Energy To Move Bakken Crude to Delaware

Foreign Crude Getting Pushed Out By The Bakken
Plains Crude By Rail Costs

Plains All American Rail Costs | Click to Enlarge

Continental has signed an agreement with PBF Energy to supply Bakken crude oil to Delaware City, DE.

Oil will be delivered to PBF Energy’s double loop track at its Delaware City Refinery. Over the past year, Continental has moved crude to the West, East, and Gulf Coasts by rail to maximize crude oil price realizations. Areas paying international crude prices offer between a $10-15 premium over markets reflecting WTI prices. [Read more...]

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