Continental: Springboarding into Spring

Continental Resources has revealed its intentions to operate an average of 19 drilling rigs in Oklahoma during 2019, up one rig from the 2018 average, with approximately 12 rigs focused on Project SpringBoard. The company expects to complete approximately 141 gross (100 net) operated wells in Oklahoma with first production in 2019 and to average 5 completion crews.

Company-wide, Continental’s year-end 2018 proved reserves were 50 percent crude oil, 85 percent operated by the company, and approximately 44 percent were classified as “proved developed producing” (PDP). While the Bakken play accounted for just over half of Continental’s 2018 proved reserves, the SCOOP accounted for 459 MMBoe, or 30 percent of 2018 proved reserves. STACK accounted for 230 MMBoe, or 15 percent of 2018 proved reserves.

STACK: Beating the Curve

Continental’s fourth quarter 2018 STACK production increased 12 percent over third quarter 2018 and 31 percent over fourth quarter 2017, averaging 62,947 BOE per day. During the quarter, the company completed 19 gross (9 net) operated wells with first production flowing at an average initial 24-hour rate per well of 3,645 BOE per day.

The Company recently completed what it calls another outstanding Meramec unit in the over-pressured condensate window of STACK. The Boden unit flowed at an impressive combined initial 24-hour rate of 14,071 BOE per day, averaging 1,197 BOE per day per well and 20,961 MCF per day per well.

“Recent results from the Boden unit further validate optimized density development and the high quality of the over-pressured Meramec that underlies our acreage position in STACK,” said Gary Gould, Senior Vice President of Production and Resource Development.

SpringBoard on Pace for 10 Percent Boost

Continental’s fourth quarter 2018 SCOOP production increased 6 percent over third quarter 2018 and 8 percent over fourth quarter 2017, averaging 67,244 Boe per day. The company completed 17 gross (14 net) operated wells with first production in fourth quarter 2018. The company’s fourth quarter 2018 SCOOP oil production increased 47 percent over fourth quarter 2017, reflecting the decision made in early 2018 to shift to the business’s oil-weighted assets.

Project SpringBoard is expected to add 10 percent, or 16,500 barrels of oil per day, to the company’s total net oil production from third quarter 2018 to third quarter 2019.

According to one source, Project SpringBoard is a “massive” multiyear project that covers 73 square miles with as much as 400 million barrels of oil gross equivalent potential. It is situated in the north-central SCOOP in Grady County, and besides the Springer formation also includes two others, the Sycamore and Woodford.

In fourth quarter 2018, Project SpringBoard production growth was on pace for its projected 10 percent rise, producing an average 5,260 barrels of oil per day.

Continental currently has 45 gross operated wells waiting on completion in Project SpringBoard, with 18 gross operated wells in the Springer reservoir and 27 gross operated wells in the Woodford and Sycamore reservoirs. Approximately 12 rigs will be focused on Project SpringBoard in 2019, with approximately 7 rigs targeting the Springer and approximately 5 rigs targeting the Woodford and Sycamore.

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