Leading Bakken oil producer,
Continental Resources Inc.
) announced the pricing of its private placement of $1.5 billion
of senior unsecured notes. The notes with a coupon rate of 4.5%
are due in 2023. The offering is expected to close on Apr 5,
2013. Continental intends to use the net proceeds from the
offering to repay its borrowings outstanding under its revolving
credit facility and for general corporate purposes.
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Oklahoma City-based Continental is an independent exploration and
production (E&P) company focused on the Bakken, Cana and
Niobrara shale plays. It has leases on nearly 1.1 million acres
in the Bakken Shale region. As of Dec 31, 2012, the company had
estimated proved reserves of about 784.7 million barrels of oil
equivalent (MMBoe), with estimated proved developed reserves of
317.8 MMBoe, or 40% of the total estimated proved reserves. Crude
oil comprised 72% of the total estimated proved reserves and
daily production averaged 97,583 barrels of oil equivalent a day
(Boe/d), reflecting a 58% increase over average production of
61,865 Boe/d for the year ended Dec 31, 2011.
The company operates in the North, South and Eastern regions of
the U.S. Its North region is north of Kansas and west of the
Mississippi river and comprises North Dakota Bakken, Montana
Bakken, the Red River units and the Niobrara play in Colorado and
Wyoming. The first two hold the maximum promise for Continental.
The Southern region includes Kansas and all properties south of
Kansas and west of the Mississippi river, comprising the Anadarko
Woodford and Arkoma Woodford plays in Oklahoma. The Anadarko and
Arkoma Woodford plays are the second most important for the
In Dec 2012, the company sold the crude oil and natural gas
properties in the East region. As of now, the remaining East
region properties comprise undeveloped leasehold acreages east of
the Mississippi River that are managed as part of the company's
Continental retains a Zacks #2 Rank (short-term Buy rating).
Investors can also pick Zacks Ranked #2
Chesapeake Energy Corporation
Crimson Exploration Inc.
EPL Oil & Gas, Inc.
) from the same sector.