CLR: GREAT well results in Oklahoma

[dan_s]

I am working on my CLR forecast model this morning and I want to pass on that the company is getting fabulous well results in Oklahoma. Estimated ultimate recoveries ("EUR") are now approaching 2,000,000 BOE and their are Stacked Zones in SCOOP and STACK.

Read this:

SCOOP: Springer Delivers Impressive Results

In first quarter 2017, SCOOP net production averaged 62,178 Boe per day (27% oil), or 29% of the Company's total production in first quarter. Continental had 14 gross (5 net) operated and non-operated wells with first production in first quarter 2017. Continental currently has five operated drilling rigs working in SCOOP.

During the quarter, Continental announced three SCOOP Springer wells. All three wells are outperforming the Company's historical 940 MBoe Springer type curve for a 4,500-foot lateral in their first 30-to-60 days on production. The Cash 1-26H well is outperforming the type curve by 75% at 30 days, the Strassle 1-28-33XH is outperforming the type curve by 35% at 60 days, and the Trammel 1-11-14-23XH is outperforming the type curve by 100% at 60 days.

The wells are located in Grady County, Oklahoma and are the first Springer wells completed by the Company since third quarter 2015. The wells were completed using the Company's latest stimulation designs, including increased proppant per foot and tighter stage spacing.

Initial 24-hour production test rates for these wells are as follows:

1,691 Boe per day (84% oil) from a 4,775-foot lateral (Cash 1-26H);
2,300 Boe per day (79% oil) from an 8,300-foot lateral (Trammell 1-11-14-23XH); and
1,257 Boe per day (89% oil) from a 5,800-foot lateral (Strassle 1-28-33XH).
Springer drilling times were also reduced through improved drilling and directional control technology. The Cash 1-26H, which was a 4,775-foot lateral, was drilled in 34 days from spud to total depth, down 45% from comparable wells drilled in third quarter 2015. Including costs for the larger stimulation, total completed well cost for the Cash 1-26H was $7.6 million, down $2.7 million, or approximately 25%, compared to the third quarter 2015 Springer wells.

The Company has elected to increase activity in the Springer during 2017 and now plans to complete up to 10 Springer wells during the year.

The Company has approximately 197,000 net acres in the SCOOP Springer, which is located approximately 1,000 feet above the Woodford formation.

Sycamore Further Expands SCOOP Asset Value

Continental announced its first two well completions targeting the Sycamore formation in Grady County, adding yet another highly productive layer in SCOOP to its portfolio. The Company has approximately 300,000 net reservoir acres in the Sycamore, which lies directly above the Woodford formation.

Initial 24-hour production test rates for the Company's new wells included:

7.8 MMcf and 225 Bo per day with a flowing casing pressure of 3,200 psi from a 5,800-foot lateral (Ryan Express 1-18-19XH); and
12.2 MMcf and 109 Bo per day with a flowing casing pressure of 3,900 psi from a 7,900-foot lateral (Pudge 1-7-6XH).
The wells have been on production approximately 170 and 180 days, respectively.

Continental is projecting that its SCOOP Sycamore wells will have an average EUR between 1.6 and 2.0 MMBoe, based on a 7,500-foot lateral.

"We are excited about Continental's Sycamore position and the added value it will bring to the Company," said Mr. Stark. "We plan to drill five to seven additional wells during the year focused on delineating the high-liquids windows of the play."

STACK: Continued Successful Well Results

STACK production increased 20% to 29,216 Boe per day in first quarter 2017, compared to fourth quarter 2016. Continental had 27 gross (8 net) operated and non-operated wells with first production in STACK in first quarter 2017.

The Company reported three operated standalone wells in the STACK Meramec over-pressured oil window and one operated well in the over-pressured condensate window.

Initial 24-hour production test rates and flowing casing pressures in pounds per square inch (psi) for these wells included:

2,865 Boe per day (74% oil) flowing at 2,850 psi from a 4,575-foot lateral (Swaim 1-14H);
2,104 Boe per day (51% oil) flowing at 2,910 psi from a 4,800-foot lateral (Mowery 1-36H);
1,907 Boe per day (59% oil) flowing at 3,925 psi from a 10,500-foot lateral (Herod FIU 1-8-5XH); and
3,011 Boe per day (10% oil) flowing at 4,400 psi from a 10,100-foot lateral (Nuzum 1-12-1XH).
The Company has 11 operated rigs in the play, with six rigs targeting the Meramec formation in the over-pressured oil and condensate windows and five targeting the Woodford formation in the Northwest Cana joint development agreement area in Blaine and Custer counties.