ENID, Okla., Dec. 20, 2011 /PRNewswire/ -- Continental Resources, Inc. (NYSE:CLR) today announced it has successfully completed the Lyle 1-30H (99% WI) in Grady County, Oklahoma, with the well flowing 7.1 million cubic feet per day (MMcfpd) of natural gas and 325 barrels of oil per day (Bopd) in its initial one-day test period.
The Lyle 1-30H was drilled as a step-out and confirmation well, four miles southeast of the Company-operated Lambakis 1-11H (98% WI), which was announced in August 2011. The Lambakis 1-11H flowed 5.4 MMcfpd of natural gas and 160 Bopd in its initial one-day test period.
While it is too early to determine an estimated ultimate recovery (EUR) for the well, Continental believes the Lyle 1-30H should be at least as large as the Lambakis 1-11H, which has an EUR in excess of 9 Bcfe, or 1.5 million Boe, based on internal evaluation. Since late May 2011, the Lambakis 1-11H has produced a cumulative 827 MMcf of natural gas, which is typically 1300 BTUs or higher, and 19,300 barrels of oil.
Continental owns approximately 96,000 net acres in the liquids-rich Southeast Cana project and is currently drilling an additional step-out well four miles southeast of the Lyle 1-30H to further expand the extent of known production on its acreage.
Production Growth Continues
Continental's production growth has continued to build in the fourth quarter of 2011.
Based on October results and preliminary November production results, the Company expects to report average production of at least 73,000 barrels of oil equivalent per day (Boepd) for the fourth quarter of 2011. This would result in Continental exceeding the upper end of its 2011 guidance of 39 percent production growth for the year. Continental does not yet have final November results for production from non-operated wells.
Continental reported average production of 66,289 Boepd for the third quarter of 2011.
"The Bakken of North Dakota and Montana continues to drive our growth," said Harold Hamm, Chairman and Chief Executive Officer. "We are also seeing increased Anadarko Woodford production, with a focus on the higher-liquid portions of the play in Blaine and Grady counties.
"Another important, positive trend in the fourth quarter has been reduced cycle times in our drilling operations," Mr. Hamm said. "We are focused on improving operating efficiency as we continue to develop these valuable assets."
In terms of Continental-operated wells, the Company has completed 46 gross wells in the Bakken so far in the fourth quarter of 2011, with 39 in North Dakota and seven in Montana. Of these, 24 North Dakota wells have had initial production results of at least 1,000 Boepd in their initial one-day test periods.
Notable fourth quarter Company-operated Bakken wells in North Dakota included (with initial one-day test period gross production results):
- Dvirnak 2-7H (43% WI) in Dunn Co. – 2,094 Boepd;
- Dvirnak 3-7H (43% WI) in Dunn Co. – 1,981 Boepd;
- Entzel 1-26H (65% WI) in Dunn Co. – 1,731 Boepd;
- Mack 4-2H (77% WI) in McKenzie Co. – 1,585 Boepd;
- Palmer 1-25H (29% WI) in McKenzie Co. – 1,533 Boepd;
- Grande 1-18H (37% WI) in Dunn Co. – 1,514 Boepd;
- Patterson 1-13H (86% WI) in McKenzie Co. – 1,498 Boepd;
- Pletan 4-18H (35% WI) in Dunn Co. – 1,459 Boepd;
- Madison 1-28H (92% WI) in Williams Co. – 1,426 Boepd;
- Barkley 1-5H (29% WI) in McKenzie Co. – 1,408 Boepd;
- Charlotte 2-22H (91% WI) in McKenzie Co. – 1,396 Boepd;
- Truman 1-23H (77% WI) in Williams Co. – 1,379 Boepd;
- Stockton 1-28H (67% WI) in Williams Co. – 1,375 Boepd; and
- Beaver Creek State 1-36H (50% WI) in Golden Valley Co. – 1,328 Boepd.
The Charlotte 2-22H was the Company's first test of the lower, second bench of the Three Forks formation and was previously reported with preliminary results of 1,140 Boepd in an initial one-day test. The higher production rate reported above primarily reflects infrastructure improvements.
Continental plans to transition increasingly to more efficient pad drilling throughout 2012, reflecting the growing percentage of its Bakken acreage that will be held by production next year. The ECO-Pad® design involves drilling four wells on two adjoining 1,280-acre spacing units from a single drilling pad. This approach reduces well costs by approximately 10 percent, as well as reducing the surface impact of each well.
In Weld County, Colorado, Continental is currently completing its second, third and fourth test wells in the Niobrara/DJ Basin play. The three wells – the Marconi 1-1H (62% WI), the Perrin 1-10H (51% WI) and the Hahn 1-4H (100% WI) – have been recently placed on high-volume pumps to recover load water after being fracture-stimulated. It is premature to announce initial production for the wells, however two of the three have begun producing oil and gas along with the load water, and the oil cuts are encouraging.
Continental expects 2011 capital expenditures will total approximately $2.0 billion, apart from production and lease acquisitions, which represent an additional $150 million for the year. These include two 2011 transactions totaling 22,600 net acres and producing properties, primarily in McKenzie and Williams counties in North Dakota, as previously announced.
Continental Resources is a crude-oil concentrated, independent oil and natural gas exploration and production company with operations in the Lower 48 United States. The Company focuses its operations in large new and developing plays where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies provide the means to economically develop and produce oil and natural gas reserves from unconventional formations.
This press release includes forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Other than historical facts included in this press release, all information regarding strategy, future operations, drilling plans, estimated reserves, future production, estimated capital expenditures, projected costs, the potential of drilling prospects and other plans and objectives of management are forward-looking information. All forward-looking statements speak only as of the date of this press release. Although the Company believes the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance these plans, intentions or expectations will be achieved. Actual results may differ materially from those anticipated due to many factors, including oil and natural gas prices, industry conditions, drilling results, uncertainties in estimating reserves, changes in estimates of projected crude oil and natural gas recoveries from certain fields, uncertainties in estimating future production from enhanced recovery operations, availability of drilling rigs and other services, availability of crude oil and natural gas transportation capacity, availability of capital resources, changes in regulatory constraints, and other factors listed in reports we have filed or may file with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.
SOURCE Continental Resources