Continental Acquiring Bakken Acreage for $650 million - Sets Production Record

Continental Resources Bakken Shale Map
Continental Resources Bakken Shale Map

Continental Resources is acquiring 120,000 acres for $650 million primarily located in Divide and Williams counties. The deal will add 6,500 boe/d of production and is expected to close by year-end. If the deal closes as expected, Continental's Bakken acreage position will swell to 1.1 million acres.

Harold Hamm commented: "Continental operates a large portion of the acreage that we are acquiring, and more than half of it is held by production."

The deal was announced in conjunction with the company's third quarter earnings release. Continental Resources reported record production of almost 103,00 boe/d, with 70% attributable to oil. The Bakken accounted for over 60% of the the total, 62,000 boe/d. Continental participated in 137 gross (46 net) wells during the quarter. The company completed 46 (34 net) operated wells during the quarter, with 24 of those producing more than 1,000 boe/d at a peak 24- hour period. Operated wells had average IPs of 1,076 boe/d in ND and 886 boe/d in MT.

Continental's ECO-Pad Results in Mckenzie County

The company also completed a ECO-Pad in McKenzie County during the quarter:

"Consisting of the Antelope 3-23H and 4-23H and the Bohmbach 3-35H and 4-35H wells. The four wells tested at an aggregate initial rate of 6,240 Boepd in total, for an average of 1,560 Boepd per well, with average flowing tubing pressure of 3,800 psi."

Continental is the largest leaseholder in the Bakken Shale and has 19 operated drilling rigs (15 in ND, 5 in MT) running in the play.