Continental's Proved Reserves in Bakken Valued at $14.5 Billion - 2013

Continental 2013 Production
Continental 2013 Production

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

Continental Resources Company-Wide Production

Continental Resources had total production of 49.6 million boe or~136,000 boe/d in 2013. That's up 39% from a little less than 100,000 boe/d 2012. 71% of the 2014 total came from crude oil at 35 mmbbls and 29% came from natural gas at 87.7 bcf.

Average production during the fourth-quarter of 2013 was 144,250 boe/d. That's up ~2% from the third-quarter of 2013.

Harold Hamm, CEO, said, “We accomplished our key 2013 goals across the board – to generate top-tier organic oil production growth; to improve efficiency while reducing drilling and completion costs; and to delineate the lower benches of the Bakken and southern portions of the South Central Oklahoma Oil Province, or SCOOP.

Continental Resources Reserves

In 2013, Continental PDP (proved developed producing) reserves exceeded 400 million boe. At the end of the year, Continental had 2,330 gross acres (1,302 net) of PUD (proved undeveloped locations). Continental's year end 2013 proved reserves had an estimated net present value of $20.2 billion. That’s a 52% increase from 2012 estimates of proved reserves at $13.3 billion.

Continental Highlights

  •  72% of net present value for proved reserves come from the Bakken - 741 mmboe at $14.5 billion
  • 84% of Continental's PUD (proved undeveloped locations) are in the Bakken
  • Company-wide total production of 49.6 mmboe in 2013
  • Q4 company-wide production of 144,250 boe/d

Read more at contres.com

QEP Resources South Antelope Bakken Properties Valued at $2.8 Billion at Year-end 2013

QEP Resources Bakken Three Forks Acreage Map
QEP Resources Bakken Three Forks Acreage Map

QEP Resources acquired its South Antelope Properties in the fall of 2012 for ~$1.4 billion.

Since the acquisition, QEP's value estimate for those properties has increased to $2.8 billion based on probable reserve estimates.

Read more: QEP - Helis Bakken Deal Agreed for 27,600 Acres for $1.4 Billion

QEP Bakken South Antelope Properties

Since the acquisition of its South Antelope properties, QEP has lowered its development costs and increased production.

Current gross completed well costs have decreased by more than $1 million from estimated costs at the time of acquisition.

In spite of delays due to downstream and weather-related issues, current South Antelope oil production grew in 2013.

Our South Antelope acquisition is a great example of our sound and stringent capital allocation process,” commented Stanley. “We are pleased to see that the assumptions made in our South Antelope acquisition have proven to be accurate and conservative.

QEP Production and Proved Reserves for 2013

QEP total equivalent production in 2013 was 309 bcfe and oil production was 10.2 million bbl. Natural gas and NGL production was 218.9 bcf and 4.8 million bbl respectively.

2013 year end total proved reserves were 2.55 tcf of natural gas, 148.6 million bbl of crude oil and 102.6 million bbl of NGL. That's a 37% increase of total proved reserves at year end 2013 compared to 2012.

At the end of 2013, QEP's Williston Basin proved reserves were estimated at 797.5 bcfe or ~140 million boe.

Highlights

  • QEP Resources South Antelope property valued at $2.8 billion
  • QEP total equivalent production in 2013 was 309 bcfe and oil production was 10.2 million bbl
  • Proved crude oil reserves at 149 million barrels. Up 25% from prior year
  • 37% increase in total proved reserves
  • Williston Basin contributed more than 140 million boe in reserves

* Extensions and Discoveries: As to any period, the increases to proved reserves from all sources other than the acquisition of proved properties or revisions of previous estimates.

Read more at QEP.com

Will Continental's Reserves Cross 1 Billion Boe in 2013?

Continental Resources Bakken Production
Continental Resources Bakken Production

Continental Resources Bakken assets account for 86% of the company's provded undeveloped (PUD) reserves. That's important because the company just reported proved reserves growth of 54%, an increase from 564 mmboe to 785 mmboe. Over 200 mmboe were added through exploration and development activity and over 80 mmboe were added through acquisitions.

Continental's (CLR) reserves have grown an average of 45% each year since 2009. If that trend continues, Continental will book more than 1.1 BILLION boe at the end of 2013!

"We continue to increase our concentration in high-value, high-growth, crude oil assets, especially in the Bakken," said Harold Hamm, Chairman and Chief Executive Officer. "We are growing the value of our Bakken assets through strategic acquisitions, exploration, and the expanded use of pad drilling, which should improve efficiencies and translate into even better rates of return."

Other items of note from the company's reserves press release include:

  • 39% of CLR's proved reserves are proved, developed and producing (PDP)
  • Crude oil accounts for 72% of reserves (up from 64% at year-end 2011)
  • CLR operates 85% of its proved reserves
  • Increased the company's Bakken position by 24% in 2012 (~900,000 acres to >1.1 million acres)
  • Total of 1,763 gross (982 net) PUD locations (86% Bakken)
  • First reserve bookings from the lower benches of the Bakken-Three Forks

If oil prices hold strong, it looks like 2013 will be another great year for Continental.

Continental Resources Plans to Triple Production & Reserves by 2017

Continental Resources Bakken Development Map
Continental Resources Bakken Development Map

Continental Resources announced plans to triple production from 36 million boe in 2012 to 108 mmboe in 2017. That's an increase from a little less than 100,000 boe/d to 300,000 boe/d. The company's proved reserves are expected to follow suit, increasing to near 1.8 billion barrels of oil equivalent in the same timeframe.

Continental expects 2013 production growth in the range of 30-35% based on a $3.4 billion capital budget accounting for the drilling of 738 gross (300 net) wells.

Production and reserves growth were just two points in the company's analyst day presentation. Highlights include:

  • Bakken is a true oil field, producing more than 85% oil
  • Continental accounts for 13% of Bakken production, 10% of the active rigs, and has 10% of potential acreage leased
  • 1.5 Billion boe of potential reserves in the Bakken and Three Forks 1 - additional reserves in the TF 2, TF 3, and TF 4 zones
  • Accelerating exploration of lower Three Forks
  • At 160-acre spacing there is potential for almost 14,000 wells and 4.5 Billion boe of resource potential
  • Elm Coulee exploration has extended the field 8 miles further north
  • OOIP estimates increasing from 577 Billion boe to 903 Billion boe. Lower Three Forks resource adds considerable potential
  • Well performance continues to improve - Over 600,ooo boe/well expected today
  • Results support 320-acre spacing