Continental Resources (CLR) held a conference call on August 5, 2010, and made comments on its operations in the Bakken.
“Our production in North Dakota Bakken continued to increase in high gear. In the second quarter, it was almost doubled what it was in the same quarter last year.”
“Continental has built a commanding land position in the Bakken, taking advantage of the competitive strengths that we’ve accumulated in play over the past decade. During the past 10 years, we’ve assembled the best historical database of leasehold in North Dakota and Montana.”
“We had record production. A 93% increased in North Dakota for the quarter year-over-year, and Montana is holding its own with only one rig running.”
“In the second quarter, we’ve participated in completing 50 gross wells in the Bakken and all but one of those was in the North Dakota. Focusing just on Continental operated wells, we completed 22 gross or 10.4 net in North Dakota. Our standard completion design is currently 24 frac stages, but we completed one 30 stage frac last quarter, the Roger 1-18H in Dunn County. It is a solid producer, testing at 1,486 barrels oil equivalent per day.”
“We have 18 operator rigs in North Dakota Bakken, one in Montana and moving a 19th rig in the North Dakota. We will have an additional rig in Montana by year-end. Three quarters of our North Dakota rigs are drilling undeveloped acreage.”
“In a revised 2010 capital expenditure budget, the Bakken is allocated $890 million CapEx, of which $643 million is for drilling operations and $247 million for land. We plan to drill 232 gross or 85 net wells in North Dakota and 14 gross or eight net wells in Montana for the year.”