Continental Resources, Inc. (“Continental” or the “Company”) (CLR) today announced continued success in its recently unveiled Springer play in the South Central Oklahoma Oil Province (SCOOP).
“Four new wells further confirm the repeatability and growth potential of Continental’s new discovery, the Springer play in SCOOP,” said Harold G. Hamm, Chairman and Chief Executive Officer. “These individual delineation wells in the play are generating excellent returns, with shallow decline rates compared to other unconventional resource plays. We expect to realize even stronger well economics as development drilling gets under way utilizing extended laterals, pad drilling, and other drilling and completion efficiencies.”
The four new wells had an average horizontal lateral length of approximately 4,475 feet. Continental expects estimated ultimate recovery (EUR) of 940,000 gross Boe per well in the oil fairway of the play for a well with a 4,500-foot lateral section. In November 2014, Continental plans to commence drilling its first extended lateral well in the Springer play, with a planned lateral length of 7,500 feet. The Company expects an average EUR of approximately 1.6 million gross Boe for extended lateral wells of this length, reflecting the 67% longer lateral.
Continental reported that the average completed well cost this year has been in line with earlier projected cost of $9.7 million per well. The four newest wells were drilled to an average vertical depth of approximately 12,625 feet and average total measured depth of approximately 17,650 feet.
“The Springer adds another significant oil resource driver to Continental’s strategic growth outlook,” Mr. Hamm said. “It’s distinguishing itself as the most productive play in Oklahoma, and it’s right in our back yard.”
The four new wells, all located in Grady County, include:
- The Nancy J 1-28H well with an initial 24-hour production test rate of 1,815 barrels of oil equivalent (Boe), with 79% of the initial production being crude oil. The Company has a 57% working interest (WI) in the Nancy J well.
- The AC Walters 1-27H with an initial 24-hour test rate of 1,630 Boe, of which 78% was crude oil. The Company has an 83% working interest in the AC Walters well.
- The Schoof 1-17H with an initial 24-hour production of 1,465 Boe, of which 74% was crude oil. The Company has a 99% working interest in the Schoof well.
- The Ince 1-21H with an initial 24-hour production test rate of 1,037 Boe, of which 86% was crude oil. Continental has a 77% working interest in the Ince 1-21H, which is approximately twenty-five miles south of the Nancy J, AC Walters and Schoof wells.
Continental’s current Springer production is approximately 6,000 net Boe per day (9,200 gross Boe per day), of which approximately 70% is crude oil. The Company currently has nine operated drilling rigs active in the Springer play, with a focus on rapidly expanding its understanding of the productive extent of the play.
Source: CONTINENTAL RESOURCES