Continental Resources Successfully Completes Initial Test Well In Third Bench Of The Three Forks Reservoir In The Bakken Field
OKLAHOMA CITY, Dec. 3, 2012 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR) announced today it successfully completed the Charlotte 3-22H (91% WI), the first horizontal well to test the third bench (TF3) of the Three Forks zone in the Bakken field of North Dakota and Montana.
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The Charlotte 3-22H flowed 953 barrels of oil equivalent per day (Boepd) at 1700 psi on a 28/64 choke in its initial one-day test period. Located in McKenzie County, North Dakota, it was drilled to a total depth of 21,324 feet, including a 9,701-foot lateral section, and was completed with Continental's standard 30-stage fracture stimulation design.
"We're very pleased with the initial performance of the Charlotte 3-22H," said Harold Hamm, Chairman and Chief Executive Officer. "The well has been producing for 15 days and its performance compares favorably with other first bench (TF1) and second bench (TF2) producing Three Forks wells."
Continental has been a pioneer in the discovery and development of the Three Forks reservoir in the Bakken field. The Company was the first to demonstrate incremental reserves from the TF1 in 2008 and the first to establish commercial production from the TF2 in 2011. Establishing production from the TF3 is yet another significant milestone in the growth of the Company's assets in the world-class Bakken oil field. If the Charlotte 3-22H continues to perform in line with the second bench Charlotte 2-22H, it will be the first well to establish commercial production in the third bench.
"This could be a real game-changer," Mr. Hamm said. "The Charlotte 3-22H is the first well in a 14-well program that we plan to complete by year-end 2013 to test productivity of the second, third and fourth benches of the Three Forks over a broad area of the play."
The 1280-acre Charlotte unit is the first unit in the Bakken field to have wells producing from three separate horizons – the Middle Bakken, TF2 and TF3 zones.
Continental estimated in late 2010 that the Bakken field would eventually yield 24 billion barrels of oil equivalent (Boe), based on technology available at that time. This estimate included 20 billion barrels of oil and 4 billion Boe of natural gas, and assumed 577 billion barrels of original oil in place in the Bakken and TF1. With the addition of oil found in the lower Three Forks benches, which includes the TF2, TF3 and TF4, the Company now estimates the field has 903 billion barrels of original oil in place, a 57 percent increase.
"The successful completion of the Charlotte 3-22H is another step in our efforts to assess the productivity and reserve potential of the lower benches of the Three Forks which is one of the goals of our 2013 drilling program" said Jack Stark, Senior Vice President of Exploration. "The results are very encouraging and indicate there may be upside to our estimate of 24 billion Boe of recoverable reserves for the Bakken field."
About Continental Resources
Continental Resources is a Top 10 petroleum liquids producer in the United States. In October 2012, the Company announced a new five-year plan to triple production and proved reserves by year-end 2017. The Company's growth plan is based on developing its industry-leading leasehold in the nation's premier oil play, the Bakken of North Dakota and Montana, as well as its position in the SCOOP and Northwest Cana plays of Oklahoma. The company reported total revenues of $1.6 billion for 2011. Visit
www.clr.com for more information.
Cautionary Statement for the Purpose of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements included in this press release other than statements of historical fact, including, but not limited to, statements or information concerning the Company's future operations, performance, financial condition, production and reserves, schedules, plans, timing of development, returns, budgets, costs, business strategy, objectives, and cash flow, are forward-looking statements. When used in this press release, the words "could," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," "budget," "plan," "continue," "potential," "guidance," "strategy," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on the Company's current expectations and assumptions about future events and currently available information as to the outcome and timing of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable and based on reasonable assumptions, no assurance can be given that such expectations will be correct or achieved or that the assumptions are accurate. When considering forward-looking statements, readers should keep in mind the risk factors and other cautionary statements described under Part I, Item 1A. Risk Factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, registration statements and other reports filed from time to time with the Securities and Exchange Commission (SEC), and other announcements the Company makes from time to time.
The Company cautions readers that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control, incident to the exploration for, and development, production, and sale of, crude oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating crude oil and natural gas reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, and the other risks described under Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, registration statements and other reports filed from time to time with the SEC, and other announcements the Company makes from time to time.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, the Company's actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may make.
Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements to reflect events or circumstances after the date of this press release.
CONTACTS: Continental Resources, Inc.
Investors
Media
Warren Henry, VP Investor Relations
Kristin Miskovsky, VP Public Relations
405-234-9127
405-234-9480
Warren.Henry@CLR.com
Kristin.Miskovsky@CLR.com
SOURCE
Continental Resources
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