Continental Resources has entered into natural gas fixed price and basis swaps for 600,000 MMBtu at an average price of $5.27 for December 2009 and for 600,000 MMBtu per month at an average price of $5.68 for calendar 2010. These hedges were put in place to underpin the Company's current and expected level of operations in the Arkoma Woodford play in southeastern Oklahoma.
Continental reported total natural gas production of 5,524 MMcf for the first quarter ended March 31, 2009, which constituted 28 percent of its total crude oil and natural gas production. The Company's crude oil production remains unhedged.
"Consistent with our growth strategy, we chose to secure a predictable cash flow stream on about a third of our natural gas production through 2010. This provides additional flexibility in terms of how we can develop our highest priority unconventional shale plays," said Harold Hamm, Chairman and Chief Executive Officer.
"Crude oil production remains our primary focus. We expect to see continued pricing strength on that side of the equation, given our outlook on U.S. supply and demand fundamentals," he said.
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