Second quarter 2014 net production totaled 15.3 million barrels of oil equivalent ("Boe"), or 167,953 Boe per day, a sequential increase of 10% from first quarter 2014 and 24% higher than second quarter 2013. Total net production included 116,441 barrels of oil per day (69% of production) and approximately 309 million cubic feet of natural gas ("MMcf") per day (31% of production).
Total production almost hit my forecast on the nose, but a lot more gas than I expected. CLR does include NGLs in the gas volume they report.
Continental Resources (CLR)
Continental Resources (CLR)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources (CLR)
This could be a really big deal for all of the Bakken companies. It could mean much better well economics and much higher proven reserves per acre. - Dan
Encouraging Results From Enhanced Completions
The Company planned to test enhanced well completion methods across 20% of its Bakken wells in 2014 and the Company has exceeded this goal. Various tests are ongoing, including combinations of fluid types, increased proppant volumes and shorter stage lengths. The tests completed to date have yielded encouraging early results. As an example of the Company's effort in one geological area of the play, three slick water completions resulted in an average early cumulative production increase of 35% higher than the production trend for Continental's 603,000 Boe estimated ultimate recovery ("EUR") model for North Dakota, and 25% higher than the production trend for nearby offsetting wells completed with the Company's standard design.
Additionally, in this same geological area, early production was also stronger for three wells completed with increased proppant volumes, which averaged between 200,000 to 300,000 pounds of proppant per stage. Early production results were 39% higher than the 603,000 Boe EUR production trend, and 30% higher than the production trend for nearby wells completed with the Company's standard design.
Continental's Bakken team continues to evaluate the performance and overall well economics for its enhanced completion program, which thus far has averaged an additional cost of $1.5 million to $2.0 million per well.
W. F. "Rick" Bott, Continental's President and Chief Operating Officer commented, "We're pleased with several of the new completion methods we are testing and early results show significant improvements in well performance. We are studying the broader implications of applying enhanced completions across the play and plan to update the market next month at our Investor & Analyst Day on September 18 in Oklahoma City."
Encouraging Results From Enhanced Completions
The Company planned to test enhanced well completion methods across 20% of its Bakken wells in 2014 and the Company has exceeded this goal. Various tests are ongoing, including combinations of fluid types, increased proppant volumes and shorter stage lengths. The tests completed to date have yielded encouraging early results. As an example of the Company's effort in one geological area of the play, three slick water completions resulted in an average early cumulative production increase of 35% higher than the production trend for Continental's 603,000 Boe estimated ultimate recovery ("EUR") model for North Dakota, and 25% higher than the production trend for nearby offsetting wells completed with the Company's standard design.
Additionally, in this same geological area, early production was also stronger for three wells completed with increased proppant volumes, which averaged between 200,000 to 300,000 pounds of proppant per stage. Early production results were 39% higher than the 603,000 Boe EUR production trend, and 30% higher than the production trend for nearby wells completed with the Company's standard design.
Continental's Bakken team continues to evaluate the performance and overall well economics for its enhanced completion program, which thus far has averaged an additional cost of $1.5 million to $2.0 million per well.
W. F. "Rick" Bott, Continental's President and Chief Operating Officer commented, "We're pleased with several of the new completion methods we are testing and early results show significant improvements in well performance. We are studying the broader implications of applying enhanced completions across the play and plan to update the market next month at our Investor & Analyst Day on September 18 in Oklahoma City."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources (CLR)
Continental Resources (CLR): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 tab.
My Fair Value Estimate increased slightly to $161.75.
CLR still on-track for 30% production growth this year. The only thing I didn't like was that the percentage of production that is natural gas increased more than I thought it would.
Big plus is the improved well results with new completion method.
Update on SCOOP very good and it should help NFX.
My Fair Value Estimate increased slightly to $161.75.
CLR still on-track for 30% production growth this year. The only thing I didn't like was that the percentage of production that is natural gas increased more than I thought it would.
Big plus is the improved well results with new completion method.
Update on SCOOP very good and it should help NFX.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources (CLR)
Do the new well completion techniques include increased sand use?
Re: Continental Resources (CLR)
Yes, they are now using 4-5 million pounds of sand per well. Very good news for HCLP and EMES. For more info go to the CLR website and look at their recent presentation.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Continental Resources (CLR)
Actually, I thought the recent SM Energy presentation did a nice job explaining the benefits of increased sand use for E&P companies