It’s all about profit when it comes to drilling for oil and natural gas and producing it. Ask any of the energy producers who have gone to Chapter 11 reorganization bankruptcy. It’s also how the big companies continue to exist—making sure there is profit when a well is completed and starts producing.
A report about Continental Resources Inc.’s Bakken operations proves the point. As the Bakken Magazine reported recently, Continental brought 10 wells completed in 2015 online during the recently-finished quarter. The report indicated that the company might have nearly 200 drilled but uncompleted Bakken wells by the end of the year.
As company officials explained in the first quarter investor call, when oil prices steady at $45 a barrel, Continental will apply incoming cash flow to reducing debt. When oil prices reach $50 a barrel, the company plans to add a completion crew in the Bakken and begin work on reducing the number of drilled but uncompleted wells. The crew should be able to add 3 to 4 wells a month to the production list.
When oil prices reach $60 a barrel and remain there, the company will consider adding more drilling rigs to the Bakken. Right now, Continental has four drilling rigs and no completion crews in North Dakota and Montana.
Earlier this week, Continental announced a record well in the STACK in Oklahoma, one producing 3,300 barrels equivalent a day. But the company remains more deeply committed to exploration in the Bakken where pipeline availability is improving, driving down prices for the company.