Continental Resources Business Practices

[dmoor82]

World Headquarters now in OKC,Harold Hamm CEO of Continental Resources say's he expects his company to triple in size within Five years,Article say's CR may be Devon's size within Five years barring a drop in barrel prices!Looks like OKC might have another giant Oil/Nat gas company in it's downtown!http://blogs.forbes.com/christopherh...rtner=yahootix

[CaptDave]

The next few years are shaping up to be very good ones for OKC. I am sorry for Enid's loss of Continental but glad they remained in state.

[UnFrSaKn]

Here's to hoping they outgrow Mid-America Tower in five years and we get a new skyscraper.

[Maynard]

Seems fitting that CLR should have its own thread, too.

ContinentalRes Oklahoma 1Q EPS 38c >CLR 05/02

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North Dakota Bakken Daily Production Increases 107 Percent

EBITDAX Increases 69 Percent to $454.5 Million in First Quarter of 2012

Company Expects 2012 Production Growth of 47 Percent to 50 Percent on Increased

Capital Expenditures

OKLAHOMA CITY, May 2, 2012 /PRNewswire-FirstCall/--Continental Resources, Inc. reported production of 85,526 Boepd (barrels of oil equivalent per day) for the first quarter of 2012, a 66 percent increase over production of 51, 663 Boepd for the first quarter of 2011.


The Company's first quarter 2012 production of 85,526 Boepd was 14 percent higher than production of 75,219 Boepd for the fourth quarter of 2011.

Continental entered May 2012 with production in excess of 91,000 Boepd, benefiting from strong well results throughout the Bakken and Anadarko Woodford of Oklahoma.

"Along with good well performance, the two factors driving our results are faster drilling cycle times and our increased working interest ownership in Bakken wells," said Harold Hamm, Chairman and Chief Executive Officer.

He noted the Company has reduced spud-to-spud drilling cycle times for Bakken wells by approximately 30 percent in the last six months.

Additionally, by acquiring almost 46,000 net acres in targeted areas of the North Dakota Bakken since mid-2011, the Company increased its average net working interest in both operated and non-operated wells. "Through successful acquisitions, we increased and concentrated our ownership in the play," Mr. Hamm said. "This acquired acreage is in prime areas where we have significant operating history."

With higher average working interest has come an increased need for additional development and capital investment. "Faster cycle times and increased ownership are enabling us to accelerate development of our acreage without adding rigs," he said.

Continental experienced strong year-over-year production growth across its three principal operating areas, the Bakken, Anadarko Woodford, and the Red River Units of Montana, and North and South Dakota.

-- Bakken production increased 88 percent to 48,024 Boepd in the first
quarter of 2012, compared with 25,523 in the first quarter of 2011.

-- Production in the North Dakota Bakken was 41,895 Boepd in the first
quarter of 2012, a 107 percent increase over production of 20,238 in the
first quarter of 2011. Montana Bakken production increased 16 percent to
6,129 Boepd in the first quarter of 2012, compared with the first quarter
of 2011.

-- The Company's Anadarko Woodford production was 12,826 Boepd, nearly five
times higher than production of 2,685 Boepd in the first quarter of 2011.

-- Production in the Red River Units was 15,415 Boepd for the first quarter
of 2012, a 10 percent increase over production of 14,066 Boepd for the
first quarter of 2011.

Three acquisitions completed since mid-2011 had a minimal impact on first quarter 2012 production, after the effect of the Company's $84 million sale of its Worland, WY properties and associated production in early 2012. The net combined effect of the acquisitions and sale is an increase in production of approximately 800 Boepd going forward.

Continental currently has 35 operated drilling rigs, with 24 in the Bakken, 10 in the Anadarko Woodford, and one in the Red River Units. This compares with a peak of 44 operated rigs in the fourth quarter of 2011. "The biggest reduction has been in the Woodford, where we've reduced our operated rigs from 16 to 10," Mr. Hamm said.

EBITDAX of $454.5 million for the first quarter of 2012 was 69 percent higher than EBITDAX of $268.7 million for the first quarter of 2011. For the Company's definition and reconciliation of EBITDAX to net income, see "Non-GAAP Financial Measures -- EBITDAX" at the end of this press release.

After accounting for an unrealized mark-to-market loss on derivatives, Continental reported net income of $69.1 million, or $0.38 per diluted share, for the first quarter of 2012. Net income included a $129.1 million pre-tax unrealized loss on mark-to-market derivative instruments, a $29.9 million pre- tax property impairment charge, and a $49.6 million pre-tax gain on sales of assets. Excluding the combined effects of the non-cash, unrealized derivatives loss, property impairment charge and gain on asset sales, Continental's net income would have been $0.76 per diluted share for the first quarter of 2012. For the reconciliation of this result to GAAP earnings per share, see "Non-GAAP Financial Measures -- Adjusted earnings per share" at the end of this press release.

For the first quarter of 2011, Continental reported a net loss of $137.2 million, or $0.80 per diluted share. Excluding the combined effects of a non- cash, unrealized derivatives loss, a property impairment charge, and a gain on sale of assets, the Company's net income would have been $0.53 per diluted share for the first quarter of 2011. For the reconciliation of this result to GAAP earnings per share, see "Non-GAAP Financial Measures -- Adjusted earnings per share" at the end of this press release.

Increased 2012 Capital Expenditures and Growth Rate

Continental is increasing its 2012 capital expenditure budget to $2.3 billion, excluding acquisitions, to continue development of recently acquired acreage and to fund accelerated drilling due to faster cycle times. Resulting production growth from these expenditures is expected to range from 47 percent to 50 percent for the year.

The Company's previous 2012 capital expenditures budget was $1.75 billion, with 88 percent of the budget allocated to drilling. The budget envisioned the Company participating in completing 759 gross (249 net) wells in 2012. Company- operated wells represented 325 gross (214 net) wells in the initial 2012 plan.

Under the revised 2012 capital expenditures budget, Continental plans to participate in completing 842 gross (300 net) wells this year. Company-operated wells represent 342 gross (240 net) wells in the revised 2012 plan. Nearly all of the additional 2012 Company-operated wells are planned for the Bakken play.

Operating and Financial Results

Crude oil accounted for 70 percent of Continental's first quarter 2012 total production.

Crude oil and natural gas sales were $552.3 million for the first quarter of 2012, compared with $326.5 million for the same period of 2011.

Continental's average realized crude oil price was $90.58 per barrel in the first quarter of 2012, while the average realized natural gas price was $4.48 per Mcf, yielding a blended realized price of $71.39 per Boe. In the first quarter of 2011, the Company reported a blended realized price of $71.14 per Boe.

The Company's crude oil price differential was $12.27 per barrel and its natural gas price differential was a premium of $1.76 per Mcf for the first quarter of 2012, due to the high liquids content of the gas. A spike in oil price differentials at the Clearbrook, MN and Guernsey, WY markets negatively affected realized prices for March and April 2012, but differentials at these markets have since improved. Due to increased oil differentials and volatility at Clearbrook, MN and Guernsey, WY, the Company expects average differentials for the year will be in a range of $9 to $11 per barrel.

Production expense was $5.18 per Boe for the first quarter of 2012, down from $6.38 per Boe for the first quarter of 2011. General and administrative expense was $3.23 per Boe, compared with $3.56 per Boe for the first quarter of 2011.

Capital expenditures for the first quarter of 2012 were $1.0 billion, including $345 million invested in lease and production acquisitions. The Company's Worland, WY property sale added back $84 million in proceeds.

As of March 31, 2012, the Company's balance sheet included $43 million in cash and cash equivalents and $1.9 billion in total long-term debt. Total long-term debt at March 31, 2012 included $176 million in borrowings under Continental's revolving credit facility. Commitments under the facility are $1.25 billion, and its total borrowing base is $2.25 billion.

The Bakken

Bakken production of 48,024 Boepd accounted for 56 percent of total Continental production, compared with 49 percent of total production in the first quarter last year.

The Company participated in completing 103 gross wells in the Bakken in the first quarter of 2012.

In terms of Company-operated wells, Continental completed 54 gross (36 net) operated wells during the first quarter of 2012, with 47 gross (30 net) in North Dakota and 7 gross (6 net) in Montana. Initial one-day test production rates for Company-operated wells in North Dakota averaged approximately 947 Boepd.

The Company currently has 24 operated drilling rigs in the Bakken, with 21 in North Dakota and three in Montana. Four of Continental's operated rigs are drilling multi-well ECO-Pad(R) projects in North Dakota, and that total is expected to increase throughout the remainder of the year.

Continental completed three ECO-Pad projects in late December 2011, and consequently did not complete a multi-well project during the first quarter ended March 31, 2012. The ECO-Pad design involves drilling four wells on two adjoining 1,280-acre spacing units from a single drilling pad. This approach reduces well costs, as well as reducing the surface impact of each well.

In April 2012, the Company completed the Candee-Kukla ECO-Pad project, which was comprised of the Candee 2-9H and 3-9H (56% WI) wells and the Kukla 2-16H and 3-16H (56% WI) wells in Dunn County, ND. The four wells produced a total 5,913 Boepd in their initial one-day test periods, for an average of 1,478 Boepd per well. Continental expects to complete at least two more ECO-Pad projects by the end of the second quarter of 2012.

At March 31, 2012, Continental's acreage position in the Bakken totaled 938, 940 net acres, with 684,109 net acres leased in the North Dakota portion of the play and 254,831 net acres in the Montana Bakken.

The Woodford Play

Highlighting the Company's Anadarko Woodford operations in the first quarter was the completion of the Tom's 1-21XH (84% WI) in Blaine County in January 2012. The Tom's 1-21XH was the first multiple-unit spaced well drilled in Oklahoma, and its horizontal section was twice the length of previous Anadarko Woodford wells drilled in the play. The Tom's 1-21XH flowed 1,270 Boepd (76% oil) in its initial one-day test period.

Continental expects longer laterals in the Anadarko Woodford will have a significant, positive impact on well productivity and economics. It is currently completing its second multiple-unit well.

Overall, Continental participated in completing 21 gross wells in the Anadarko Woodford in the first quarter of 2012. In terms of operated wells, Continental completed 12 gross (9 net) wells in the quarter. Initial one-day test production rates for Company-operated wells in the Anadarko Woodford averaged approximately 728 Boepd.

Continental currently has eight operated rigs in the Southeast Cana section of the Anadarko Woodford and two in the Northwest Cana, all of which are focused on crude oil and liquids-rich areas.

In the Arkoma Woodford of Oklahoma, the Company's production was 3,637 Boepd in the first quarter of 2012, compared with 4,065 Boepd in the first quarter of 2011. Continental has suspended drilling in the Arkoma Woodford due to the low price for dry gas.

At March 31, 2012, the Company had 280,610 net acres leased in the Anadarko Woodford and 36,729 in the Arkoma Woodford.

The Red River Units

The Company's production in the Red River Units increased to 15,415 Boepd in the first quarter of 2012, a 10 percent increase over production of 14,066 Boepd in the first quarter of 2011. "Much of the improvement was in the Buffalo Units in South Dakota, where we've been increasing our injection volumes over the past year," Mr. Hamm said. "We're seeing excellent results in this enhanced oil recovery project."

Niobrara Play (Colorado and Wyoming)

In the Niobrara/DJ Basin, Continental completed the Buchner 1-2H (82% WI) in Weld County, CO, during the first quarter of 2012. The Buchner 1-2H produced 910 Boepd (90 percent oil) in its initial one-day test period.

As previously announced, the Company completed the Staudinger 1-31H (56% WI) in January 2012, which produced 739 Boepd in its initial one-day test production period.

"We're currently assessing results for our first nine Niobrara wells and preparing to initiate the second phase of our development program," Mr. Hamm said.

Continental had 92,842 net acres in the Niobrara/DJ Basin at March 31, 2012, with approximately 25,000 net acres in the identified oil fairway of the play.

First Quarter 2012 Earnings Conference Call

The Company plans to host a conference call on Thursday, May 3 at 10 a.m. ET to discuss its results for the quarter. Those wishing to listen to the conference call may do so via the Company's web site at www.CLR.com or by phone:

Dial in: 888-679-8035
Pass code: 24687880

[bluedogok]

All that activity in North Dakota got my company a project, we are doing a complete new terminal complex for the Minot International Airport.

[ou48A]

That’s prosperity at work for you

[Spartan]

Minot has an international airport?

[BoulderSooner]

Minot has an international airport?

no international flights .. but they have customs service on sight

[adaniel]

All that activity in North Dakota got my company a project, we are doing a complete new terminal complex for the Minot International Airport.

Used to live there actually, from 1991-1993. Dad was in the air force so we were transferred there from Alaska. The place was COLD. It snowed every month at least once except for June, July, and August when I was there. The people were awesome though. I actually remember flying out of that airport and it seemed a lot bigger and busier than for what you would expect a town that size.

[Oil Capital]

Minot has an international airport?

In the same sense that Tulsa and Des Moines have international airports and Oklahoma City has a "world" airport.

[bluedogok]

Used to live there actually, from 1991-1993. Dad was in the air force so we were transferred there from Alaska. The place was COLD. It snowed every month at least once except for June, July, and August when I was there. The people were awesome though. I actually remember flying out of that airport and it seemed a lot bigger and busier than for what you would expect a town that size.

We got another Minot project a couple of weeks after the airport was approved, a new hanger at that base. It is actually a larger and more expensive project than the new airport terminal building.

[sooner88]

They announced their earnings yesterday and they were below the analysts estimate. Their stock price dropped 15% ($91.82 to $77.75), this is a fairly significant drop considering CHK has dropped by roughly 20% throughout everything that has happened in the past month.

[ou48A]

IMHO This is a big deal for the company’s involved and for our nation


Wednesday, May 23, 2012

A researcher looking into whether there’s more oil in North Dakota than is currently known didn’t give a hint during a standing room only session Wednesday at the Williston Basin Petroleum Conference.

In an industry that thrives on chatter, everybody was eager to hear the latest numbers. If the U.S. Geological Survey said it’s too soon to say, a production official with Continental Resources had no such compunction.

Jack Stark, vice president of production for Continental, said his company now estimates there are between

27 billion and 45 billion barrels of recoverable oil in the Bakken and associated formations.

That’s substantially more than it estimated two years ago and more than six times the amount the Geological Survey estimates.


Stark said the company upped its estimate when it discovered that three more layers below the Bakken and Three Forks also are productive.

He said the company has drilled nearly 700 wells into the formation in six years.

Stark said his company believes there are more than 900 billion barrels of oil in place, but only between 3 percent and 5 percent is actually recoverable with today’s technology.

Continental’s numbers are much more aggressive than the research compiled by the U.S. Geological Survey, which might have had top billing in the session lineup, but didn’t provide the most sought-after information.

In 2008, the Geological Survey estimated there are 4 billion barrels of oil in the Bakken. Stephanie Gaswirth, a lead researcher with the U.S. Geological Survey, said it will be another 18 months before a new assessment of Three Forks and a reassessment of the Bakken formation is complete.

Gaswirth said the Three Forks was not assessed in 2008, though it’s clearly a production zone, and new data will provide a better understanding of the Bakken.

The new assessment started in October and involves looking at core samples, production data and geological information, she said.

She said what’s known about the Three Forks so far is that it’s an unconventional zone, like the Bakken: Oil there is harder to extract and carries the same potential for holding a lot of oil.

“It’s possible it could be the same as the Bakken, lower or higher,” she said.

State Geologist Ed Murphy said Continental’s new estimate wasn’t a shock.

He said his agency started learning a year ago that the Bakken formation is sending oil “all down through the system.”

“I would certainly expect that number (Geological Survey’s 4 billion barrels) to go up, but beyond that, we just don’t know. We will be very interested when it comes out,” Murphy said.

Stark said the company had almost a “eureka” moment when it looked at core samples of dolomite layers below the Bakken and Three Forks and realized the oil was deeper than expected.

“It’s amazing how widespread the saturation is,” he said.

He said Continental Resources plans to drill into all the zones and continue to gather data.

“We’re in the very early stages regarding the Three Forks, about where we were with the Bakken in 2008. We’re a long way from understanding it completely,” he said.

Gaswirth said the Three Forks extends miles farther geographically than does the Bakken.

She said one question she hopes to be able to answer is how far the Three Forks produces beyond the boundary of the Bakken. To learn that, oil companies will have to tell her.

“We don’t drill,” Gaswirth said.


Read more: http://bismarcktribune.com/bakken/co...#ixzz1vtOoKOuw

[Maynard]

Accounting & Governance Risk Overview: Continental Resources, Inc. 06/04 10:10 AM

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Continental Resources, Inc. is currently rated as having Aggressive Accounting & Governance Risk (AGR), receiving an AGR score that places them in the 12th percentile among all companies in North America rated by GMI, indicating higher accounting and governance risk than 88% of the other companies.

[ou48A]

This is a great interview done on Thursday 09 Aug 12, with
Continental Resources chairman CEO Harold Hamm.

http://video.cnbc.com/gallery/?video=3000108103&play=1

[Pete]

From the Wall Street Journal:



Wildcatter Hunts His Next Gusher
9/21/12
By GREGORY ZUCKERMAN

OKLAHOMA CITY—On the national scene, wildcatter Harold Hamm has arrived. The rags-to-riches oil magnate now is one of Mitt Romney's top energy advisers and recently testified in Congress about energy independence.

But on Wall Street, Mr. Hamm's company, Continental Resources Inc., CLR -3.28% is facing questions about whether it can continue trouncing the competition.

Mr. Hamm is among the biggest winners of the continuing boom in U.S. oil-and-gas production. He and his five children own nearly $11 billion of shares of Continental Resources, the largest producer in North Dakota's oil-rich Bakken rock formation, up from about $2 billion just five years ago. Mr. Hamm's family collectively is wealthier than Mark Zuckerberg, Stephen Schwarzman and the estate of Steve Jobs, based on the recent Forbes list.

But lately Continental, the nation's ninth-largest oil producer, is losing a bit of its luster.

The stock is down nearly 12% since a recent high on May 1, even as energy shares and the overall market rose about 4% in that period. Continental remains up around 20% on the year.

Continental shares are up 435% since going public in May 2007, outpacing all other energy companies. But its high valuation now has some investors wary. More fundamental factors also are weighing on shares, including rising drilling costs and mixed views on how successful Mr. Hamm's next big drilling venture will be.

According to FactSet Research, 45% of analysts polled have "buy" ratings on Continental, compared with 65% for other energy companies. Continental trades at 7.2 times 2013's expected earnings before interest, taxes, depreciation and amortization, or Ebitda, compared with 5.1 for the industry.

"People are nervous about Continental because it's a high-multiple stock," says Andrew Coleman, an analyst at Raymond James. He has an "outperform" rating on the stock, rather than a "buy," because he expects oil prices to fall over the next year, weighing on profits.

"Investors come out of our sector, then come running back in," said Mr. Hamm, a 66-year-old with auburn hair and a playful grin, in a recent interview at his downtown Oklahoma City offices, which feature cowskin chairs and a cowhide rug. "I look a long way ahead in the business, I want the big fields, the elephants," or huge new oil fields.

Mr. Hamm says he may have found one in a rock formation below the Bakken called the Three Forks, which he says could "redefine" the area.

If he's right, Mr. Hamm could potentially earn billions more. But if production falters, or if the global economy weakens and oil prices fall, Mr. Hamm may regret not selling the company after receiving various approaches in recent years. When oil prices fell 29% from late February through late June, Continental's stock tumbled 33.5%.

Some analysts and investors say the track record on drilling in what's considered "tight" rock formations, such as in the Three Forks, is relatively limited, making it hard to know how much will be extracted.

Some also worry about Continental's spending. Capital expenditures will hit $3 billion this year, according to the company, above its expectations of about $1.8 billion at the start of 2012. The average cost of a well there rose to $9.2 million from $8.5 million in the past year, according to Mr. Hamm, as labor, housing and other drilling expenses have risen in the region. Spending has grown as production has climbed, the company adds.

"Everyone's suffering cost creep. It got out of hand" as production has boomed in the area, Mr. Hamm says.

Mr. Hamm says he is responding by reining in drilling. Continental now operates 26 rigs in the country, down from 44 late last year. Analysts still expect Continental to see production rise as much as 59% this year, as existing wells become more efficient and continue to produce big supplies.

As for oil prices, Mr. Hamm says he doesn't expect a glut and predicts oil prices of $90 to $100 a barrel for the foreseeable future. On Friday, U.S. oil prices settled at $92.89 a barrel.

"The largest part of our growth story is ahead," Mr. Hamm says. More details on that front may be forthcoming: The company says on Oct. 9 it will unveil a five-year plan at an event for investors at its corporate headquarters.

The youngest of 13 children of poor sharecroppers in rural Oklahoma, Mr. Hamm was pumping gas and washing trucks at 17. He started an oil-services company—personally scooping sediment from oil tanks with a long mop—before turning to exploration. He endured 17 straight dry holes in the late 1980s.

After discovering signs of a huge oil find in North Dakota, Mr. Hamm took his company public in May 2007, an offering that received a lukewarm response from investors initially. Shares traded below their IPO price as recently as March 2009.

For years, the limelight was fixed on a fellow Oklahoman, Aubrey McClendon, co-founder of natural-gas giant Chesapeake Energy Corp. CHK +0.21% But as natural-gas prices have tumbled, and the Bakken has proved a success, Continental has overtaken Chesapeake in market capitalization and Mr. Hamm's profile has grown.

A victory by Mr. Romney could give a new boost to Continental and Mr. Hamm, who has given nearly $1 million to a "super PAC" supporting Mr. Romney's campaign. The Republican candidate has defended retaining tax incentives for exploration companies and favors allowing states to regulate the controversial drilling technique called "fracking," used in the Bakken and elsewhere.

In 2011, Continental and other oil companies faced charges by the Justice Department for allegedly killing birds, in Continental's case a Say's Phoebe, in the Bakken. The charges later were dropped. Mr. Hamm says a Romney administration would be less likely to pursue these kinds of charges. A spokesman for the Justice Department declined to comment.

Continental has been hurt because there isn't enough pipeline to deliver Bakken crude to its markets. That has kept oil prices below benchmark national levels.

Mr. Romney is expected to encourage new pipelines, which face resistance from some environmentalists. Mr. Hamm once supported a lobbying group that opposed the Keystone XL pipeline, but reversed his stance after the operator, TransCanada Corp., agreed to carry U.S. oil along with Canadian oil.

"It's not about us," Mr. Hamm says, explaining his active backing of the Republican. "Gov. Romney will encourage investment to build infrastructure we need as a nation."

[ou48A]

This is significant for CLR and for shareholders and for the state of Oklahoma.
Continental Resources unveils Oklahoma oil field | NewsOK.com
Continental Resources unveils Oklahoma oil field
Continental Resources on Tuesday announced a new oil play in southern Oklahoma. Known as the SCOOP, the oil-rich shale rock is the source of some of the state's oldest oil fields, including those tapped by the Phillips, Noble, Hefner and Skelly families, Continental said Continental Resources Inc. on Tuesday unveiled its newest oil field in an area of southern Oklahoma that has produced some of the state's richest discoveries.

The South Central Oklahoma Oil Province, known at Continental as SCOOP, covers much of four counties in south central Oklahoma. The rock is an oil-rich portion of the Woodford Shale that lies beneath oil fields tapped by some of the state's biggest oil names, including Phillips, Noble, Hefner and Skelly.

“It's a huge opportunity for the company and another great asset for us because we're looking at an asset with rates of return that compete head-to-head with what we're doing in the Bakken” in North Dakota and Montana, said Jack Stark, Continental's senior vice president of exploration.

“With that as another opportunity that is widespread and repeatable, it gives us one more avenue of growth that has as much upside potential as we see in the Bakken.”

Continental made the announcement at its investor day presentation at the Cox Business Center in downtown Oklahoma City. The play includes parts of Carter, Stephens, Grady and Garvin counties.

The new field shares many similarities with Continental's biggest and best-known production area. Because of those similarities, the company already has an advantage in southern Oklahoma, Stark said.

“Technology transfer is a huge part of this business right now,” he said. “We're accessing what were once considered just source rock. To be able to do that takes technology.

“Anything we learn on one resource play can be transferred to the next play. There's always some adjustment here and there, but the bottom line is the technology we have perfected in the Bakken is directly transferrable to what we're doing here in the Woodford.”

At the end of 2010, Continental had 94,000 acres in the area with 3 percent held by production. Today, the company has more than 170,000 acres with 23 percent held by production, including 34 wells Continental has drilled in the area.

The new field drew praise from analysts and investors attending the presentation.

“I think the SCOOP will be interesting,” said Gail Nicholson, an analyst with KLR Group in Tampa, Fla. “I don't think the market has included that potential in the stock price. People think of Continental as the Bakken. Coming out and explaining the oil potential of the SCOOP will cause people to start to think about what's there. They have a good acreage position there. They're ahead of the game.”

While Continental executives touted the new field as an area of future potential, the Bakken will continue to be the company's primary focus, Stark said.

“We call the Bakken the king of the tight oil fields,” Stark said. “It is so large and just like other good fields, it keeps getting bigger. We think the Bakken should be used as a template or standard for oil field development.”

Continental is the largest producer, driller and leaseholder in the Bakken. The company produced 22.2 million barrels of oil over the past year, has 576 net wells in the region and has identified at least 4,000 potential wells.

The increased position in both the Bakken and in southern Oklahoma is expected to help the company continue to grow, CEO Harold Hamm said.

Hamm set a new goal of again tripling its production to 108 million barrels of oil equivalent and proved reserves to more than 1.5 billion barrels of oil equivalent by the end of 2017.

Analyst Andrew Coleman said he was pleased to hear that Continental will fund its increased drilling budget without taking on large amounts of debt.

“Continental is one of my favorite stocks,” said Coleman, an analyst with Raymond James in Houston. “The pushback I get from investors is that they are spending a lot of money. But anytime you can get the growth out of the market without stretching the balance sheet, it's the right approach.”

[HangryHippo]

Good for Continental. I hope Oklahoma City, and all of Oklahoma, can reap the benefits of this.

[ou48A]

The good news is that unlike the Bakken there is already a good amount of existing supporting infrastructure in the area.
But more will be needed.

Also, most people living in the area are already familiar with the industry and are very comfortable with operations.
Many make their living in the energy industry.

At a minimum it will mean millions in state tax revenue.
Millions for mineral rights owners and millions for many new high wage jobs. As long as oil prices don’t collapse this is prosperity.

[ou48A]

With all the new oil & natural gas production from various source passing through our state it would be wise for states leadership to push for the development of facility’s that added value to these resources.

We could add billions to our state’s economy and add thousands of new high wage jobs.
Right now we are really missing out on a gigantic opportunity.

[HangryHippo]

With all the new oil & natural gas production from various source passing through our state it would be wise for states leadership to push for the development of facility’s that added value to these resources.

We could add billions to our state’s economy and add thousands of new high wage jobs.
Right now we are really missing out on a gigantic opportunity.

What exactly do you think the state could do to capitalize on the opportunity you feel is being missed? I'm not familiar with this industry and am not sure what we're missing.

[ou48A]

What exactly do you think the state could do to capitalize on the opportunity you feel is being missed? I'm not familiar with this industry and am not sure what we're missing.

Somebody with economic development experience would know better than myself about how the state could help. The state could offer special state incentives that would be negotiated.

Oklahoma is unique in that it has some of the world’s best concentration of large diameter raw crude oil pipelines. As far as I can determine the products could be anything that’s made from raw crude or natural gas. Most of the oil is of good to high quality, making it cheaper and easier to process.

The Cushing hub offers cost advantages that others have difficulty matching and as crude production numbers increases in the mid-continent area these advantages should continue. Oklahoma’s economy rises and falls with the energy prices. By building products from raw crude oil and natural gas we add value to the product. But when oil and NG prices are low these products frequently become more profitable. We could help cushion the state from poor economic times caused by extremely low energy prices and at the same time add new high wage jobs.

We have good rail and road options along with barge options. However we would probably need more product pipeline capacity.

[soonerguru]

Somebody with economic development experience would know better than myself about how the state could help. The state could offer special state incentives that would be negotiated.

Oklahoma is unique in that it has some of the world’s best concentration of large diameter raw crude oil pipelines. As far as I can determine the products could be anything that’s made from raw crude or natural gas. Most of the oil is of good to high quality, making it cheaper and easier to process.

The Cushing hub offers cost advantages that others have difficulty matching and as crude production numbers increases in the mid-continent area these advantages should continue. Oklahoma’s economy rises and falls with the energy prices. By building products from raw crude oil and natural gas we add value to the product. But when oil and NG prices are low these products frequently become more profitable. We could help cushion the state from poor economic times caused by extremely low energy prices and at the same time add new high wage jobs.

We have good rail and road options along with barge options. However we would probably need more product pipeline capacity.

Doesn't Oklahoma already provide a huge tax break for drilling? I recall a few years ago George Kaiser spoke to the Legislature about removing it, saying it was unnecessary to encourage drilling.

The article doesn't mention where this discovery is. Do you know which three counties it is?

[Bellaboo]

Doesn't Oklahoma already provide a huge tax break for drilling? I recall a few years ago George Kaiser spoke to the Legislature about removing it, saying it was unnecessary to encourage drilling.

The article doesn't mention where this discovery is. Do you know which three counties it is?

The map in the picture had the field from about the South Canadian River down to the Red River in Southwest central Oklahoma. I'd say that from Chickasha to Duncan would be the center of activity.

[onthestrip]

Id be willing to bet CR will be building a new corporate tower in the next 5 years or so.