Continental increases Bakken operations and those in the Powder River Basin

 

Continental Resources apparently likes the oil prices in recent weeks as the Oklahoma City-based shale oil producer indicated it plans on increased drilling operations in North Dakota’s Bakken shale field where founder Harold Hamm pioneered some of the state’s drilling operations.

In a conference with investors, Hamm said nearly 70% of the company’s well completions in the second half of 2021 will be in the Bakken. At the start of the year, the completions there represented about 50%.

“We see supply and demand is coming back into balance and that bodes well for commodity prices in the future,” Continental Executive Chairman Harold Hamm told investors. There remains a supply overhang in the market, and upward momentum in oil prices largely depends on the Organization of the Petroleum Exporting Countries (OPEC) “functioning as they do and have been,” he said.

Chief Executive Officer Bill Berry told investors during the earnings call that the company also plans to shift its production portfolio by focusing more heavily on oil.

 Oil prices are around $64 to $65 a barrel and at the same time Continental’s shares were up about 1.52% in the past few days.
Ever since Hamm entered the Bakken in North Dakota, Continental has become a top oil producer in the state.
Company leaders also indicated they believe the Dakota Access Pipeline will continue its operations moving oil out of the state despite legal challenges.
Continental also plans to initiate more activity in Wyoming’s Powder River Basin, It will operate two drilling rigs in the Basin this quarter.
Executives expect to drill the first well in the Basin in the coming days. In March, the company entered the region through the acquisition of Samson Resources.
Samson, headquartered in Tulsa announced in early March the closing of its sale of Powder River Basin assets for an estimated $215 million. The purchase by Continental included 130,000 net acres and 9,000 boe/d of production. The deal also reportedly involved 96 approved federal drilling permits.
At the time of the acquisition, Continental indicated it would begin delineating and developing the Shannon, Frontier and Niobrara reservoirs with 2 rigs in the second quarter of 2021.
Jack Stark, Continental Resources president and chief operating officer said at the time, “These Powder River Basin assets provide Continental another oil-weighted platform, adding over 400 MMboe of net unrisked resource potential to our portfolio.”