From the CC it is clear they are very excited about the Cana Woodford play. I also think their projected 40% increase in production this year is on the low side of what they really think.
From the CC:
Continental clearly has world-class asset positions in the Bakken and Anadarko Woodford and we're delivering world-class operating results to match. I can't tell you how proud I am of the entire Continental team of employees and the results they're achieving. As a result of their achievements yesterday, we revised 2012 production growth guidance to a higher range of 37% to 40% and this is without an increase in drilling capital expenditures. How is this possible? To simply put, and Jeff will expand on this later, our well results were stronger than expected in new expansion areas in the Bakken and in the Anadarko Woodford. When we developed our regional [ph] 2012 drilling plan, we've projected results on a risk basis in new and proven areas west of the North Cana in North Dakota, and the southernmost section of the Southeast Cana, the Oklahoma, Anadarko Woodford, and the oil wind of the Northwest Cana.
CLR
Re: CLR
From their CC;
These wells and the expansion areas are as strong or stronger than typical wells in established areas where we've done much more drilling. So based on approximately the same 2012 drilling investment and expected well count, we plan to grow production as much as 40% this year.
We're placed to an interesting question that would've been asked by more than 2 investors in recent months. How is Continental growing and operating at such a high level when other operations, especially in the Bakken, are challenged with several infrastructure constraints? And it's a great question.
First, Continental's focused on a world-class operation by a world-class team. We're committed to being the best, most efficient operator in the Bakken, Anadarko Woodford and oil plays. It starts with the people, we believe we have the most capable professional teams and they certainly have a great depth of experience, with older hands having operated in this place for decades. Certainly, we face challenges just like everybody else. And we've basically seen it all over the years and we've learned to anticipate future needs as drilling activity ramps up and as the infrastructure capacity is strained and when harsh weather conditions affect how we can operate.
With the benefit of our experience and talent, we're always planning ahead and anticipating challenges. Based on our drilling plan for instance, we know statistically how many wells will need servicing throughout the year and we plan accordingly to have work on the rigs available when we need them. Having such a large acreage position, we can move contractor rigs around as they are needed in different counties, like we did last year when some of the areas were still wet. Given our reputation and the fact that we have the largest drilling program and acreage position in the Bakken and Anadarko Woodford, we are drilling and service contractors lined up to work with us and men who are always wanting to lease with us to help us achieve mutual goals. They know we will be in the play for decades. We are the operator of choice and we work directly with midstream pipeline and railing companies so they are ready for Continental's growth as it continues to accelerate.
These wells and the expansion areas are as strong or stronger than typical wells in established areas where we've done much more drilling. So based on approximately the same 2012 drilling investment and expected well count, we plan to grow production as much as 40% this year.
We're placed to an interesting question that would've been asked by more than 2 investors in recent months. How is Continental growing and operating at such a high level when other operations, especially in the Bakken, are challenged with several infrastructure constraints? And it's a great question.
First, Continental's focused on a world-class operation by a world-class team. We're committed to being the best, most efficient operator in the Bakken, Anadarko Woodford and oil plays. It starts with the people, we believe we have the most capable professional teams and they certainly have a great depth of experience, with older hands having operated in this place for decades. Certainly, we face challenges just like everybody else. And we've basically seen it all over the years and we've learned to anticipate future needs as drilling activity ramps up and as the infrastructure capacity is strained and when harsh weather conditions affect how we can operate.
With the benefit of our experience and talent, we're always planning ahead and anticipating challenges. Based on our drilling plan for instance, we know statistically how many wells will need servicing throughout the year and we plan accordingly to have work on the rigs available when we need them. Having such a large acreage position, we can move contractor rigs around as they are needed in different counties, like we did last year when some of the areas were still wet. Given our reputation and the fact that we have the largest drilling program and acreage position in the Bakken and Anadarko Woodford, we are drilling and service contractors lined up to work with us and men who are always wanting to lease with us to help us achieve mutual goals. They know we will be in the play for decades. We are the operator of choice and we work directly with midstream pipeline and railing companies so they are ready for Continental's growth as it continues to accelerate.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR
Continental acquired 6 cores of the entire Three Forks formation in 2011 and discovered they were up to 3 additional layers where benches of low bearing dolomite within the lower Three Forks formation. The significance of this discovery, and what makes us such a game changer, as Harold mentioned is, that the volume of oil in plays for the field, almost doubles with this added reservoirs.
Based on our estimates, the oil in plays now stands at around 900 billion barrels of oil versus our previous estimate of 577 billion barrels of oil. This in turn, should ultimately translate into more technically recoverable reserves for the field. Just how much more remains to be seen, but we have taken the first step to demonstrate through the bid that the second bench of the Three Forks is a commercial reservoir
Based on our estimates, the oil in plays now stands at around 900 billion barrels of oil versus our previous estimate of 577 billion barrels of oil. This in turn, should ultimately translate into more technically recoverable reserves for the field. Just how much more remains to be seen, but we have taken the first step to demonstrate through the bid that the second bench of the Three Forks is a commercial reservoir
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group