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|Continental Resources Provides 2007 Guidance and Second Quarter Conference Call Information|
ENID, Okla., June 26 /PRNewswire-FirstCall/ -- Continental Resources (NYSE: CLR) today provided estimates for certain operating and financial measures for calendar 2007. The guidance is forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the Company's control, as further described later in this press release.
Year Ended December 31, 2007 Production volumes: Oil (Mbbls) 8,400 - 8,800 Gas (MMcf) 13,800 - 15,000 Oil equivalent (Mboe) 10,700 - 11,300 Price differentials (1): Oil (per bbl) $5.00 - $8.00 Gas (per Mcf) $1.00 - $1.50 Operating costs and expenses: Production expense (per boe) $6.50 - $7.20 Production tax (percent of sales) 5.2% - 5.7% Depreciation, depletion, amortization and accretion (per boe) $8.25 - $8.75 General and administrative (per boe) (2) $2.05 - $2.25 Non-cash stock-based compensation (per boe) $1.20 - $1.35 Net oil and natural gas services income $7,000 - $8,000 (in thousands) Tax expense in 2nd quarter for C-Corp conversion (in thousands) $180,000 - $190,000 Income tax rate (percent of post-IPO pre-tax net income) 38% Percent deferred 97% (1) Differential to calendar month average NYMEX futures price for oil and to average of last three trading days of prompt NYMEX futures contract for gas. (2) Excludes non-cash stock-based compensation.
Continental Resources' capital expenditure budget for 2007 and expected completed gross and net wells are set forth in the following table:
Gross Net CAPEX Wells Wells (in millions) Drilling: Red River Units $126 51 48 Montana Bakken Shale 57 31 21 North Dakota Bakken Shale 71 37 16 Other Rocky Mountain 10 12 8 Oklahoma Woodford Shale 82 123 18 Other Mid-Continent 13 28 26 Gulf Coast 4 3 2 Total $363 285 139 Acreage 32 Workovers and facilities 31 Seismic 7 Other 4 Total $437
The Company plans to drill 51 increased density wells and 20 re-entry wells within the Cedar Hills and Medicine Pole Hills Units to accelerate production and enhance sweep efficiency of the high pressure air and waterflood operations. Within the Montana Bakken Shale play, the Company is completing 640-acre spacing development and testing the productivity of 320-acre infield wells and 640-acre tri-lateral wells in the northern portion of the field.
In the Company's two principal emerging plays, the North Dakota Bakken Shale and Oklahoma Woodford Shale, the Company currently owns approximately 288,000 and 44,000 net undeveloped acres, respectively. The Company has drilled relatively few wells in the plays at this time and, as a result, reserve estimates are subject to uncertainty. However, the Company is currently using average gross per-well reserves in the North Dakota Bakken Shale of approximately 315 Mboe and, in the Oklahoma Woodford Shale, 3 Bcfe for economic modeling purposes. In the Oklahoma Woodford Shale, the Company expects to participate in approximately 100 gross (7 net) outside operated wells.
Second Quarter 2007 Conference Call
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