Continental Revises 2015 CAPEX Budget
Continental Resources announced Monday a revised 2015 non-acquisition capital expenditures budget of $2.7 billion. This level of activity is projected to yield 16 percent to 20 percent production growth in 2015 compared to estimated 2014 production.
Harold G. Hamm, chairman and chief executive officer, commented, "This revised budget prudently aligns our capital expenditures to lower commodity prices, targeting cash flow neutrality by mid-year 2015. This budget also maintains our financial flexibility and strong balance sheet while continuing to grow production in our core Bakken and SCOOP plays. The depth and quality of our asset base coupled with our financial strength allows us to be adaptable in a variety of price environments."
The company plans to decrease its current average operated rig count from approximately 50 to approximately 34 by the end of first quarter 2015 and average approximately 31 operated rigs for full-year 2015. Allocation of operated rigs include 16 in the SCOOP Woodford/Springer plays, 11 in North Dakota Bakken and four in Northwest Cana, where 50 percent of the costs applicable to the company's interest is being carried by a JV partner.
The revised 2015 budget is based on completing 81 net wells for the SCOOP Woodford/Springer plays with no change to previous estimated ultimate recovery (EUR) targets. In the Bakken, the company now expects to complete 188 net wells focused primarily in its core acreage, targeting an increased average EUR of 800,000 barrels of oil equivalent per well. In the Northwest Cana play and other areas, the Company plans to complete 11 net wells. Completed well cost estimates are expected to average at least 15 percent below 2014 averages as service costs adjust to lower commodity prices.
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