Sunday, October 24, 2010

Continental Resources: Bakken Shale Update

By Andrea:

Continental Resources Inc. (CLR) announced the completion of 26 Company-operated gross wells (16.4 net) in the North Dakota Bakken play in the third quarter of 2010, with an average one-day production test of 995 Boepd (barrels of oil equivalent per day). These wells, with their one-day test results, included:

* Bonney 2-3H (43% WI) in Dunn Co. - 1,765 Boepd;
* Roadrunner 1-15H (56% WI) in Dunn Co. - 1,722 Boepd;
* Rollefstad 2-3H (73% WI) in McKenzie Co. - 1,714 Boepd;
* Medicine Hole 2-27H (43% WI) in Dunn Co. - 1,702 Boepd;
* Mack 2-2H (74% WI) in McKenzie Co. - 1,471 Boepd;
* Ravin 1-1H (59% WI) in McKenzie Co. - 1,300 Boepd;
* Howard 1-5H (52% WI) in Divide Co. - 1,201 Boepd;
* Bjella 1-24H (41% WI) in Williams Co. - 1,029 Boepd.

Among Continental's operated wells completed in the third quarter of 2010 were the four wells in its first ECO-Pad(R) project - Hegler 1-13H and 2-13H (83% WI) and Arthur 1-12H and 2-12H (94% WI) in Dunn County. Continental's ECO-Pad concept involves drilling paired wells in adjoining 1,280-acre spacing units. The ECO-Pad concept involves drilling the first pair of parallel wells to target the Middle Bakken zone and the Three Forks zone in the first unit, separated vertically by about 50 feet and horizontally by 660 feet. The second pair of wells duplicates this pattern in the adjoining spacing unit.

All four wells are drilled from a single drilling pad, which reduces surface footprint. The Arthur and Hegler wells in the first ECO-Pad project had a one-day test production rate total of 4,359 Boe, for an average of 1,090 Boepd per well.

"Production rates and wellbore pressures clearly indicate that the Middle Bakken and Three Forks zones are isolated from one another, confirming our expanded view of the North Dakota Bakken's potential," Mr. Hamm said. "We are producing these wells under restriction to conserve the energy resource and minimize flaring.

"This is clearly the technology approach to take as we move into full-scale development," Mr. Hamm said.

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