Continental Resources (CLR) held a conference call on February 25, 2010, to discuss its fourth quarter of 2009 earnings report. The company has increased production steadily from its Woodford Shale properties over the last few years, and reported a 69% increase in production in 2009 over 2008.
“In our established Arkoma Woodford play, fourth quarter production was up 9% over fourth quarter 2008, and annual production was up 69% over 2008. At year end 2009, we had 21 gross, 3.1 net wells waiting on completion. During 2009, we completed the total of 71 gross, 8.5 net wells, which compared with 130 gross, 24.6 net wells completed in 2008. Our 2009 completions include a combined combination of 640-acre exploratory and 80-acre in-field development type wells.”
“We continue to use simul fracking when possible to more effectively stimulate produce the Woodford shale or causing minimal disruption to existing offsetting producing wells. In the past year, we also acquired 63 square miles of 3-D seismic data, which will provide critical guidance to our exploration development drilling in the East McAlester area.”
“At year end 2009, we had approximately 44,800 net acres under lease in Arkoma Woodford play. We have added to that position in early 2010 and now have 47,500 net acres. Approximately 47% of this acreage is held by production and contains a total of 401 gross, 100.3 net proven undeveloped locations for future drilling.”
“For 2010, we plan to invest 56 million to drill 58 gross, 12 net wells in Arkoma Woodford play. Approximately 46% of the drilling capital was targeted for development drilling, with the balance focused on strategic step-out and exploratory drilling designs to secure acreage and delineate productive areas for future development. We currently have one operated rig drilling in Arkoma Woodford play and expect to keep two rigs drilling in the play much of the year.”
Source: Seeking Alpha