Continental Resources Reports Third Quarter 2015 Results
New Wells in STACK: Ladd 1-8-5XH Flows 2,181 Barrels of Oil Equivalent (Boe) per Day (79% Oil), and Marks 1-9-4XH Flows 994 Boe per Day (73% Oil)
Positive Revisions to 2015 Guidance: Lower Cash Costs and Increased Production
Debt and Credit Facility Changes Reduce Borrowing Costs While Increasing Liquidity
Production for Third Quarter 2015 Averaged 228,278 Boe per Day < compared to my forecast of 213,000 Boe per day
I am working on the CLR forecast model now and will get it posted to the EPG website this afternoon.
CLR had a good 3rd quarter
CLR had a good 3rd quarter
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR had a good 3rd quarter
STACK
The Company continues to de-risk its leasehold position in the STACK play in Oklahoma.
Continental recently completed its second and third STACK wells, the Ladd 1-8-5XH and the Marks 1-9-4XH. Both wells targeted the Meramec reservoir in Blaine County, northwest of the Ludwig 1-22-15XH, the Company's initial STACK well. The Ladd tested at an initial production rate of 2,181 Boe per day (79% oil) from a 9,742-foot lateral. The Marks tested at an initial production rate of 994 Boe per day (73% oil) from a 10,092-foot lateral.
Production from the previously announced Ludwig 1-22-15XH well continued to strengthen after it was initially reported last quarter, resulting in a 24-hour peak production rate of 2,782 Boe per day (76% oil).
"Continental and others continue to successfully expand the productive footprint of STACK west into Blaine, Dewey and Custer counties, where the STACK reservoirs are thicker, over-pressured, and are delivering superior production rates," said Mr. Stark. "More than 95% of our acreage lies in these counties, and approximately 60% is held by production."
The Company is drilling three additional STACK wells, with one well waiting on completion and expects to spud another two to three wells before year end. Continental has 146,300 net acres in the play. Continental currently has three operated drilling rigs in STACK.
The Company continues to de-risk its leasehold position in the STACK play in Oklahoma.
Continental recently completed its second and third STACK wells, the Ladd 1-8-5XH and the Marks 1-9-4XH. Both wells targeted the Meramec reservoir in Blaine County, northwest of the Ludwig 1-22-15XH, the Company's initial STACK well. The Ladd tested at an initial production rate of 2,181 Boe per day (79% oil) from a 9,742-foot lateral. The Marks tested at an initial production rate of 994 Boe per day (73% oil) from a 10,092-foot lateral.
Production from the previously announced Ludwig 1-22-15XH well continued to strengthen after it was initially reported last quarter, resulting in a 24-hour peak production rate of 2,782 Boe per day (76% oil).
"Continental and others continue to successfully expand the productive footprint of STACK west into Blaine, Dewey and Custer counties, where the STACK reservoirs are thicker, over-pressured, and are delivering superior production rates," said Mr. Stark. "More than 95% of our acreage lies in these counties, and approximately 60% is held by production."
The Company is drilling three additional STACK wells, with one well waiting on completion and expects to spud another two to three wells before year end. Continental has 146,300 net acres in the play. Continental currently has three operated drilling rigs in STACK.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR had a good 3rd quarter
I have updated the CLR forecast model. It will be on the EPG website this afternoon.
My Fair Value Estimate adjusted to $41.80, compared to First Call's price target of $41.40 and Stifel's TP of $45.00.
My valuation came down a bit because I lowered the combined natural gas + NGL price for 2016 to $3.00/mcfe. CLR's combined realized price for gas and NGLs was $5.49/mcfe in 2014. I am also assuming CLR's production will be 220,000 boepd in 2016, which is below their 3Q production rate.
My Fair Value Estimate adjusted to $41.80, compared to First Call's price target of $41.40 and Stifel's TP of $45.00.
My valuation came down a bit because I lowered the combined natural gas + NGL price for 2016 to $3.00/mcfe. CLR's combined realized price for gas and NGLs was $5.49/mcfe in 2014. I am also assuming CLR's production will be 220,000 boepd in 2016, which is below their 3Q production rate.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group