OKLAHOMA CITY, Sept. 17, 2014 /PRNewswire/ -- Continental
Resources, Inc. (the "Company") (NYSE: CLR) plans to conduct its
2014 Investor and Analyst Day meeting tomorrow, Thursday, September 18, 2014 at 8:00 a.m. CT. An audio webcast and
presentation materials will be available before 8:00 a.m. CT on the day of the event and can be
found on the Company's website at www.CLR.com in the Investor
Relations section. Topics to be covered during the event
include:
Logo -
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Bakken:
- Detailed geologic and reservoir studies suggest Continental's
Bakken net unrisked resource potential totals approximately 4.1
billion Boe (barrels of oil equivalent), in addition to the
Company's proved developed reserves of approximately 240 million
Boe (MMBoe).
- Successful well density tests conducted during 2013 and 2014
indicate optimal well density for full development of the Bakken
Petroleum System on average should include seven to nine wells in
the Middle Bakken Formation (MB), seven to nine wells in the Three
Forks One Formation (TF1) and three to five wells in the Three
Forks Two Formation (TF2) in each of their productive
fairways.
- The Company executed an expansive enhanced completion program
across its vast leasehold position in the Bakken. Early
results suggest an approximate 25% uplift in production and similar
potential uplift to economic ultimate recovery (EUR). The
Company is seeing the most favorable results utilizing a hybrid
completion design, which includes greater proppant volume
(approximately 200,000 pounds per stage) and a combination of
slickwater and crosslinked gel fluids.
SCOOP:
- Based on additional leasehold acquired and two years of
delineation and exploration drilling, Continental estimates its
South Central Oklahoma Oil Province (SCOOP) net unrisked resource
potential has increased to approximately 3.6 billion Boe, nearly
the size of its Bakken opportunity.
- The updated SCOOP Woodford type curve EUR is 1.725 MMBoe in the
condensate fairway and 655 thousand Boe
(MBoe) in the oil fairway. Both are based on a 7,500 foot
horizontal lateral length.
Exploration Discovery: Springer Shale
- Continental's exploration team does it again – the Company is
announcing a new oil discovery, the Springer Shale, located in the
heart of the SCOOP.
- The original discovery well and two subsequent confirmation
wells have cumulative production of approximately 640 MBoe in the
20 months following the original discovery well. Continental
currently has 11 producing wells in the oil fairway of the Springer
Shale with an average 24-hour initial production (IP) rate of 1,140
Boe per day and an average 30-day IP of 700 Boe per day.
- Initial Springer Shale oil fairway production data
suggests an EUR of 940 MBoe, with 67% oil and 17% natural gas
liquids, for an average 4,500 foot lateral length.
2014 and 2015 Guidance:
With the success of the enhanced completion testing program in
the Bakken and the exceptional returns achieved in the new Springer
Shale oil discovery, the Company is accelerating drilling and
completion capital expenditures in the second half of 2014 for a
total full-year estimate of $4.55
billion in 2014 and $5.2
billion in 2015. Going forward, a majority of the
Company's Bakken wells will incorporate enhanced completions, and
completed well costs are expected to average approximately
$10 million per well. This is
an increase of approximately $2 to
$2.5 million above the Company's standard completion
design cost from year-end 2013. The Company plans to average
eight operated rigs in the Springer Shale for the remainder of the
year, an increase from just one rig earlier in the year. This
acceleration will have limited impact on overall 2014
production results, given only a quarter of the year is
remaining and the lag between capital expenditure and resulting
production. However, the Company estimates exiting 2014 at
net production of approximately 200 MBoe per day, an increase from
previous internal projections.
Company guidance highlights for 2015 include projected
year-over-year production growth of 26% to 32% over 2014. The
Company's complete guidance outlook for 2014 and 2015 are as
follows:
Continental
Resources, Inc.
|
2014 and 2015
Guidance Outlook
|
As of September
17, 2014*
|
|
|
|
|
|
|
2014
|
2015
|
|
|
|
|
|
|
Production growth
(YOY)
|
|
27% to
30%
|
26% to 32%
|
|
Capital expenditures
(non-acquisition)
|
|
$4.55
billion
|
$5.2
billion
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
Production expense per
Boe
|
|
$5.60 to
$6.00
|
$5.50 to
$6.00
|
|
Production tax (% of oil
& gas revenue)
|
|
8% to
8.5%
|
7.5% to
8.5%
|
|
G&A expense per
Boe
|
|
$2.00 to
$2.50
|
$2.25 to
$2.75
|
|
Non-cash equity compensation
per Boe
|
|
$0.70 to
$0.90
|
$0.75 to
$0.95
|
|
DD&A per Boe
|
|
$20.00 to
$22.50
|
$20.00 to
$22.50
|
|
|
|
|
|
|
Average Price
Differentials:
|
|
|
|
|
NYMEX WTI crude oil (per
barrel of oil)
|
|
($8.00) to
($11.00)
|
($9.00) to
($11.00)
|
|
Henry Hub natural gas (per
Mcf)
|
|
+$1.00 to
$1.50
|
+$1.00 to
$1.50
|
|
|
|
|
|
|
Income tax
rate
|
|
37%
|
37%
|
|
Deferred
taxes
|
|
90% to
95%
|
90% to
95%
|
|
|
|
|
|
* Bold items above in
guidance denote a change from the previous disclosure. This
is the first time 2015 guidance has been
released.
|
|
|
|
|
|
|
|
|
|
|
Cautionary Statement for the Purpose of the "Safe Harbor"
Provisions of the Private Securities Litigation Reform Act of
1995
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements
included in this press release other than statements of historical
fact, including, but not limited to, statements or information
concerning the Company's future operations, performance, financial
condition, production and reserves, schedules, plans, timing of
development, returns, budgets, costs, business strategy,
objectives, and cash flow, are forward-looking statements. When
used in this press release, the words "could," "may," "believe,"
"anticipate," "intend," "estimate," "expect," "project," "budget,"
"plan," "continue," "potential," "guidance," "strategy," and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. Forward-looking statements are based on the
Company's current expectations and assumptions about future events
and currently available information as to the outcome and timing of
future events. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable and
based on reasonable assumptions, no assurance can be given that
such expectations will be correct or achieved or that the
assumptions are accurate. When considering forward-looking
statements, readers should keep in mind the risk factors and other
cautionary statements described under Part I, Item 1A. Risk Factors
included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2013, registration
statements and other reports filed from time to time with the
Securities and Exchange Commission ("SEC"), and other announcements
the Company makes from time to time.
The Company cautions readers these forward-looking statements
are subject to all of the risks and uncertainties, most of which
are difficult to predict and many of which are beyond the Company's
control, incident to the exploration for, and development,
production, and sale of, crude oil and natural gas. These risks
include, but are not limited to, commodity price volatility,
inflation, lack of availability of drilling, completion and
production equipment and services and transportation
infrastructure, environmental risks, drilling and other operating
risks, lack of availability and security of computer-based systems,
regulatory changes, the uncertainty inherent in estimating crude
oil and natural gas reserves and in projecting future rates of
production, cash flows and access to capital, the timing of
development expenditures, and the other risks described under Part
I, Item 1A. Risk Factors in the Company's Annual Report on Form
10-K for the year ended December 31,
2013, registration statements and other reports filed from
time to time with the SEC, and other announcements the Company
makes from time to time.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
Should one or more of the risks or uncertainties described in this
press release occur, or should underlying assumptions prove
incorrect, the Company's actual results and plans could differ
materially from those expressed in any forward-looking statements.
All forward-looking statements are expressly qualified in their
entirety by this cautionary statement. This cautionary statement
should also be considered in connection with any subsequent written
or oral forward-looking statements that the Company, or persons
acting on its behalf, may make.
Except as otherwise required by applicable law, the Company
disclaims any duty to update any forward-looking statements to
reflect events or circumstances after the date of this press
release.
About Continental Resources
Continental Resources (NYSE: CLR) is a Top 10 independent oil
producer in the United States.
Based in Oklahoma City,
Continental is the largest leaseholder and producer in the nation's
premier oil field, the Bakken play of North Dakota and Montana. The Company also has significant
positions in Oklahoma, including
its recently discovered SCOOP play and the Northwest Cana play.
With a focus on the exploration and production of oil, Continental
is on a mission to unlock the technology and resources vital to
American energy independence. In 2014, the Company will celebrate
47 years of operation. For more information, please visit
www.CLR.com.
Investor
Contact:
|
Media
Contact:
|
John J.
Kilgallon
|
Kristin
Miskovsky
|
Vice President,
Investor Relations
|
Vice President,
Public Relations
|
405-234-9330
|
405-234-9480
|
John.Kilgallon@CLR.com
|
Kristin.Miskovsky@CLR.com
|
SOURCE Continental Resources