Continental Resources to Triple Production by 2017
Continental Resources, Inc. announced Monday a new five-year growth plan to triple production and proved reserves by year-end 2017. According to its strategic growth plan, the Company plans to generate average production of 300,000 barrels of oil equivalent per day (boepd) in 2017.
The Company reported average production of 94,852 boepd for the second quarter ended June 30, 2012.
During its 2012 Investors Day, the Company's management and operating teams plan to discuss the following:
- Continental's plans to triple production from 2012's expected total of approximately 36 million barrels of oil equivalent (MMBoe), which is the mid-point of the Company's 2012 growth guidance. This level of growth would result in production of 108 MMBoe in 2017.
- The Company expects production growth in 2013 in a range of 30 percent to 35 percent, based on a capital expenditures budget (excluding acquisitions) of $3.4 billion. Based on this budget, the Company expects to complete 738 gross (300 net) wells in 2013.
- Continental expects oil differentials will average in a range of $8 to $11 per barrel in 2013. The Company expects its liquids-rich natural gas production will have an average premium of $1.00 to $1.50 per Mcf.
- Continental plans to triple proved reserves from year-end 2011 to year-end 2017. Continental's estimated proved reserves at mid-2012 totaled 610 MMBoe.
- The Company's growth plan is focused on its premier oil and natural gas liquids assets in the Bakken play of North Dakota and Montana and Oklahoma's Anadarko Woodford play.
"Our legacy assets in the largest oil field found in over 40 years, the Bakken, provide a large amount of comfort in the reliability of our new five-year plan," said Harold Hamm, Chairman and Chief Executive Officer. "In addition, those assets are supplemented by a new and expanded view of the Anadarko Woodford resulting in a new oil province with multiple oil plays which we plan to unveil at our 2012 Investors conference."
Continental is the #1 leaseholder in the Bakken, with almost one million net acres. The Company's leasehold in the Anadarko Woodford was 315,675 net acres as of June 30, 2012.
"We have an exceptional opportunity to accelerate the value of our assets in these premier plays," said Rick Bott, President and Chief Operating Officer. "The purpose of the 2012 Investors Day is to communicate how we intend to achieve our growth goals with high rate-of-return projects and increased operating efficiencies, while maintaining our conservative debt metrics."
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