Continental Switching Gears on Production Curtailments
Continental Resources is switching gears on some of its previously announced production curtailments. The company had said it would curtail 70% of operated oil production in May, with continued curtailments into June. Now, starting in July, it expects to partially begin resuming production.
But the comeback will be gradual, as it still plans to curtail about 50% of its operated oil production.
According to the company:
- June 2020 total production is expected to average 150,000 to 160,000 Boepd
- Second quarter 2020 total production is expected to average 200,000 to 205,000 Boepd
- July 2020 total production is expected to average 225,000 to 250,000 Boepd
"Continental elected to defer production in order to preserve shareholder value over volumes, and maximize the economics of the barrels we produce,” said Bill Berry, Chief Executive Officer.
“As oil prices have stabilized and begun to recover, we have partially resumed production. As improved supply and demand fundamentals benefit oil prices, we expect to continue restoring production in subsequent months."
In March, the company revised its 2020 capital budget to $1.2 billion, a 55% cut in capital spend from the original budget of $2.65 billion. It also reduced its average rig count from nine to approximately three in the Bakken and 10.5 to four in Oklahoma.
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