Energy Prospectus

Continental Resources Inc. (CLR) announced that its total proven oil and gas reserves for 2012 increased by 54.0% to 785 MMBoe (million barrels of oil equivalent) year over year.

The growth was mainly backed by exploration and development activity. Accelerated production in the Bakken play of North Dakota and Montana and increased production in South Central Oklahoma Oil Province (:SCOOP) also contributed to the growth. Continental is the leading leaseholder in the Bakken, with a net acreage of about 1.1 million.

Continental's total 2012 proved reserves consisted 39.0% proved developed producing (PDP) versus 40.0% at year-end 2011. The company also operated 85.0% of its total proved reserves in 2012, 1.0% lower than year-end 2011.

"SCOOP" is another MAJOR development area for CLR. We will have details in our next profile on the company. - Dan

Crude oil reserves represented 72 percent of 2012 total proved reserves, a significant increase over year-end 2011, when crude oil accounted for 64 percent of the Company's 508 MMBoe in proved reserves. The higher percentage of crude oil proved reserves in 2012 was accomplished despite two crude-oil concentrated divestitures.

Continental currently operates 85 percent of its total proved reserves, compared with 86 percent at year-end 2011.

"We continue to increase our concentration in high-value, high-growth, crude oil assets, especially in the Bakken," said Harold Hamm, Chairman and Chief Executive Officer. "We are growing the value of our Bakken assets through strategic acquisitions, exploration, and the expanded use of pad drilling, which should improve efficiencies and translate into even better rates of return."

Through acquisitions and leasing, Continental increased its Bakken leasehold by 24 percent in the past year, from 915,863 net acres at year-end 2011 to 1,139,799 net acres at year-end 2012.

Continental's 2012 production totaled 35.7 MMBoe, a 58 percent increase over production of 22.6 MMBoe for 2011, in line with the Company's production growth guidance for 2012.

Estimated fourth quarter 2012 production was 9.8 MMBoe, or 106,831 Boe per day, a 42 percent increase over fourth quarter production for 2011. The Company deferred some fourth quarter well completions to stay within its capital expenditure budget for 2012. Fourth quarter 2012 was the 19th consecutive quarter in which Continental has increased production compared with the immediately previous quarter. [Q4 production was slightly lower than what I have in my forecast model. However, the current production (below) bodes well for a nice increase in Q1 to start off the year on the right foot. I am now expecting CLR's 2013 production to increase by approximately 33%. - Dan]

Based on continued production growth, as well as an acquisition and a divestiture announced December 20, 2012, Continental's current production is approximately 116,000 Boepd.