Continental Resources (CLR) held a conference call on February 25, 2010, to discuss its fourth quarter of 2009 earnings report. The company made comments on its acreage in the Bakken shale in North Dakota and Montana.
Continental Resources grew production in 2009 by a double-digit percentage due to its Bakken Shale development program.
“We delivered total production of 13.6 million barrels of oil equivalent in 2009, a 13% increase over 2008. The key to this accomplishment was North Dakota Bakken, where we doubled production last year to 2.4 million barrels of oil equivalent.”
“The Bakken play continued to deliver excellent results during 2009. Our Montana and North Dakota Bakken production combined grew 31% over 2008 in spite of completing 20% fewer net wells than we did in 2008.”
“We ended 2009 with a new record well for Continental and North Dakota Bakken, the Hendrickson Number 1-36H in northeast McKenzie County, with 1,990 Boe average for seven days with a flowing tubing pressure of 3,000 psi. It’s a huge well on a very productive development area for Continental.”
“During the year, we completed 104 gross, 35 net wells in the Bakken play, with 90% of the net wells located in North Dakota. Accordingly, North Dakota accounted for most of our Bakken growth. Our net production in North Dakota grew to an average daily rate of 8,578 barrels of oil equivalent in December 2009, up 60% from the average daily rate in December of 2008.”
“Initial production rates of our wells increased during the year, especially our operated wells, due to improved completion technology and evolving geologic perspectives. The seven-day average initial rate for wells completed in the fourth quarter of 2009 was 1,070 barrels of oil equivalent per day compared with 546 barrels of oil equivalent per day for wells completed in the fourth quarter of 2008.”
Source: Seeking Alpha