OKLAHOMA CITY, Oct. 17, 2017 /PRNewswire/ -- Continental
Resources, Inc. (NYSE: CLR) (the Company) today announced its
first-ever sale of Bakken oil specifically for delivery overseas.
The Company has sold 1,005,000 barrels of Bakken crude oil for
November delivery to Atlantic Trading and Marketing ("ATMI"), which
intends to export the oil to China.
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Daily sales transactions of 33,500 barrels per day in November
will take place in Cushing,
Oklahoma. ATMI then plans to transport the oil for loading
on tankers at Texas ports.
"This is a historic day for Continental and begins a new chapter
in our long-term strategy to establish multiple international
markets for American light sweet oil," said Harold Hamm, Continental's Chairman and Chief
Executive Officer. "This new normal was created by the American
shale energy revolution and the lifting of the 1977 crude oil
export ban. We expect to see many similar industry transactions in
coming months and years."
In December 2015 the U.S. lifted
its ban on oil exports, allowing foreign sales to be transacted
without a license. Oil exports have grown steadily in the past two
years, primarily to foreign refineries configured specifically to
process light sweet crude oil. "We recognized back in 2015, when we
were working to lift the export ban, that American light sweet oil
would be a good fit for these refineries, especially in
Europe and Asia," Mr. Hamm said.
"The current $6 discount to Brent
should not exist, given the consistency and high quality of WTI, as
well as relative shipping costs," he said. "Stabilized U.S.
production and increasing industry sales of American crude to
international markets will drive down U.S. inventories, correcting
much of the recent disparity between Brent and WTI prices. Modern
modes of transport in the crude oil sector today eliminate price
disparities between markets and allow free markets to work."
He noted that Continental continues to develop additional
international markets for its light sweet oil.
About Continental Resources
Continental Resources (NYSE: CLR) is a top 15 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
significant positions in Oklahoma,
including its SCOOP Woodford, SCOOP Springer and SCOOP Sycamore
discoveries and the STACK 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 2017, the Company will
celebrate 50 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 December
31, 2016, 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
|
Senior 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
|
|
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SOURCE Continental Resources