OKLAHOMA CITY, Aug. 18, 2016 /PRNewswire/ -- Continental
announced today that it has signed a definitive purchase and sale
agreement with an undisclosed buyer to sell non-strategic
properties in North Dakota and
Montana for $222 million. The sale includes 68,000 net acres
of leasehold primarily in western Williams County, North Dakota, and 12,000 net
acres of leasehold in Roosevelt County,
Montana. The sale also includes net production of
approximately 2,800 barrels of oil equivalent (Boe) per day. The
agreement provides for customary closing conditions and
adjustments.
Logo -
http://photos.prnewswire.com/prnh/20120327/DA76602LOGO
"This is our third sale of non-strategic assets this year, with
total expected proceeds of more than $600
million. We plan to apply proceeds to reduce debt and
strengthen our balance sheet," said Harold
Hamm, Chairman and Chief Executive Officer.
In May 2016, the Company announced
the sale of approximately 132,000 net acres of leasehold in the
Washakie Basin in Wyoming for $110
million. On August 3, 2016,
Continental announced it had signed a definitive purchase and sale
agreement with an undisclosed buyer to sell approximately 29,500
net acres of non-strategic leasehold in the eastern SCOOP play in
Oklahoma for $281 million.
"Our guidance for the year has not changed. The combination of
Continental's high quality drilling inventory, strong balance sheet
and $560 million investment in
drilled but uncompleted wells (DUCs) provides the Company with a
robust platform for high-value future growth," Mr. Hamm said. The
$560 million investment includes both
operated and non-operated DUCs, approximately 80% of which are in
North Dakota.
Continental currently has approximately 215 gross operated
DUCs in inventory, of which approximately 165 are in the Bakken.
The Company expects the total to grow to approximately 240 gross
operated DUCs at year-end 2016, with approximately 190 in the
Bakken. The Company said its Bakken
DUCs have an average estimated ultimate recovery (EUR) of
850,000 Boe per well and can be completed at an average cost of
between $3.0 million to $3.5 million
per well.
About Continental Resources
Continental Resources (NYSE: CLR) is a top 10 independent oil
producer in the U.S. Lower 48 and a leader in America's energy
renaissance. Based in Oklahoma
City, Continental is the largest leaseholder and one of the
largest producers in the nation's premier oil field, the Bakken
play of North Dakota and
Montana. The Company also has
leading positions in Oklahoma,
including its SCOOP Woodford and SCOOP Springer discoveries and the
STACK and Northwest Cana plays. With a focus on the exploration and
production of oil, Continental has unlocked the technology and
resources vital to American energy independence and our nation's
leadership in the new world oil market. In 2016, the Company will
celebrate 49 years of operations. For more information, please
visit www.CLR.com.
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, forecasts or expectations
regarding the Company's business and statements or information
concerning the Company's future operations, performance, financial
condition, production and reserves, schedules, plans, timing of
development, rates of return, budgets, costs, business strategy,
objectives, and cash flows 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 these assumptions and
expectations are reasonable, they are inherently subject to
numerous business, economic, competitive, regulatory and other
risks and uncertainties, most of which are difficult to predict and
many of which are beyond the Company's control. No assurance can be
given that such expectations will be correct or achieved or that
the assumptions are accurate. The risks and uncertainties include,
but are not limited to, commodity price volatility; the geographic
concentration of our operations; financial market and economic
volatility; the inability to access needed capital; the risks and
potential liabilities inherent in crude oil and natural gas
drilling and production and the availability of insurance to cover
any losses resulting therefrom; difficulties in estimating proved
reserves and other reserves-based measures; declines in the values
of our crude oil and natural gas properties resulting in impairment
charges; our ability to replace proved reserves and sustain
production; the availability or cost of equipment and oilfield
services; leasehold terms expiring on undeveloped acreage before
production can be established; our ability to project future
production, achieve targeted results in drilling and well
operations and predict the amount and timing of development
expenditures; the availability and cost of transportation,
processing and refining facilities; legislative and regulatory
changes adversely affecting our industry and our business,
including initiatives related to hydraulic fracturing; increased
market and industry competition, including from alternative fuels
and other energy sources; and the other risks described under Part
I, Item 1A. Risk Factors and elsewhere in the Company's Annual
Report on Form 10-K for the year ended December 31, 2015, 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 on
which such statement is made. 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.
Except as otherwise required by applicable law, the Company
undertakes no obligation to publicly correct or update any
forward-looking statement whether as a result of new information,
future events or circumstances after the date of this report, or
otherwise.
Readers are cautioned that initial production rates are subject
to decline over time and should not be regarded as reflective of
sustained production levels. In particular, production from
horizontal drilling in shale oil and natural gas resource plays and
tight natural gas plays that are stimulated with extensive pressure
fracturing are typically characterized by significant early
declines in production rates.
We use the term "EUR" or "estimated ultimate recovery" to
describe potentially recoverable oil and natural gas hydrocarbon
quantities. We include these estimates to demonstrate what we
believe to be the potential for future drilling and production on
our properties. These estimates are by their nature much more
speculative than estimates of proved reserves and require
substantial capital spending to implement recovery. Actual
locations drilled and quantities that may be ultimately recovered
from our properties will differ substantially. EUR data
included herein remain subject to change as more well data is
analyzed.
Investor
Contact:
|
Media
Contact:
|
J. Warren Henry
|
Kristin
Thomas
|
Vice President,
Investor Relations &
Research
|
Vice President,
Public Relations
|
405-234-9127
|
405-234-9480
|
Warren.Henry@CLR.com
|
Kristin.Thomas@CLR.com
|
|
|
Alyson L.
Gilbert
|
|
Manager, Investor
Relations
|
|
405-774-5814
|
|
Alyson.Gilbert@CLR.com
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/continental-resources-announces-222-million-sale-of-non-strategic-assets-in-north-dakota-and-montana-300315126.html
SOURCE Continental Resources