Continental Resources (CLR) reported earnings for the first quarter of 2010, and held a conference call on May 6, 2010, to discuss the results. During the call the company made comments on some of its operations, including the Bakken Shale in North Dakota and Montana.
Continental Resources reported on the Round Prairie Prospect, located in Williams County, where the company is drilling wells to the Bakken and the Three Forks.
Round Prairie Project
“We have two operated rigs drilling and one new rig moving into the Round Prairie Prospect. As I mentioned earlier, Round Prairie is far of Western Williams County where we announced over Three Forks test and the Stedman Middle Bakken test. We are drilling both Middle Bakken and Three Forks test in the Round Prairie area.”
Oil Service Costs
“Service costs are beginning to rise due to the increasing activity, where I can tell you, we are currently holding our average drilling completion cost below $6 million per well with 24 stage fracs. However, we are hearing the pressures quite high in some of the smaller operators.”
“As you know steel has going up every month this year, so as we ramp up activity and the steel mills get back to operation, we’re going to have pressure on steel. It’s going to be pressure on labor, right now everyone that can work is working in Western North Dakota, Eastern Montana.”
Source: Seeking Alpha