Earnings and Oil Production Are Up at Continental Resources

A pretty stunning earnings report was released this week by Oklahoma City-based Continental Resources a the company said its 4th quarter oil production was up 44% over the same time period in 2016.

The company reported $841.9 million in 4th quarter 2017 net income or $2.25 per Diluted Share. However of the total net income,  $128.2 million was from operations while $713.7 million resulted from federal tax reform.

Full year net income totaled $789.4 million or  $2.11 per diluted share. At the same time, the company increased its production by 18% from the third quarter to the 4th quarter of 2017.

Net production in the 4th quarter totaled 26.4 million Boe with oil production up 20%.

Continental, one of the early explorers in the Bakken in North Dakota reported it continued to set drilling records, brining 39 gross operated wells online in the 4th quarter with an average initial production of 2,180 Boe per well. Five of those wells have a flowing average of 2,230 Boe a day.  And 4th quarter 2017 Bakken production was up 58% over a year earlier.

“Continental’s returns from the Bakken compete head to had with the best oil plays in the U.S. today, driven by our optimized completions and lower production expense,” said company President Jack Stark.

Closer to home in the STACK, Continental saw a 96% increase in production from the 4th quarter of 2016 to the last quarter of 2017.  Sixty-three wells were completed in the quarter with net production averaging 47,914 Boe a day.

The company continues with density testing in the STACK Meramec over-pressured condensate window. It reported the tightest well spacing its ever tested t o date in one site and said it was the equivalent of six wells per zone or 12 wells in the unit. A second density test is underway.

Continental indicated it intends to maintain an average of 8 operated drilling rigs in the STACK during 2018.  Five rigs will be dedicated to  the Spring reservoir in Oklahoma’s SCOOP

“We are eager to begin development of this prolific oil reservoir,” added Stark. “Timing is right  to take advantage of improved crude prices and our optimized completion technology.”