Continental Resources believes its well results and other industry wells prove the lower Three Forks will be prospective over a 3,800 square mile area. A total of eighteen wells have been drilled in the lower Three Forks and the company has only seen interference with other zones in one unit where there is significant natural fracturing (Colter Unit noted on the map).
Bakken production grew to 88,000 boe/d in the second quarter. That's up 14% from the first quarter and up 65% from the second quarter of 2012. Bakken growth supported a full-year production growth projection increase from 35-40% to 38-40%. Continental is running 20 rigs in the Bakken region.
“We are extremely pleased with our progress to date on productivity and interference testing in the lower Three Forks benches across a large area. Our industry-leading approach to scientifically understanding the field will allow us to optimize the development of America’s greatest oil play - the Bakken.”
he company participated in the completion of 180 gross (73 net) wells in in the second quarter. The company's backlog of drilled and not yet completed wells stands at 75 wells.
The average well in the North Dakota came online at 1,150 boe/d and wells in Montana came online at 455 boe/d. Three Forks Second Bench and Three Forks Third Bench wells have come online at an average of 1,200 boe/d and 970 boe/d, respectively.
Drilling Faster At Lower Costs
Approximately 70% of Continental's wells are drilled from well pads in the Bakken and spud to total depth has declined by 4 days (20%) compared to one year ago.
“Our initial target was to lower our operated well cost by $1 million per well by year-end 2013 to $8.2 million and now we think we can get to $8.0 million or lower per operated well.”
The best wells in North Dakota have been drilled at a cost of $7.5 million and the best wells in Montana have been drilled for a cost of $6.4 million.
Read more from the company at contres.com