Leading Bakken oil producer
Continental Resources Inc.
) plans to boost its production as well as proved reserves by
three-fold by year-end 2017.
CONTL RESOURCES (CLR): Free Stock Analysis
EOG RES INC (EOG): Free Stock Analysis Report
To read this article on Zacks.com click here.
This is in line with Continental's strategic plan to amplify
production from the 2012 mid-range estimate of 36 million barrels
of oil equivalent (MMBOE) to 108 MMBOE by 2017. The growth will
come mainly from its Bakken shale acreage in North Dakota and
Montana and Oklahoma's Anadarko Woodford area. Continental's proved
reserves of 610 MMBOE in mid 2012 is also anticipated to triple at
the end of 2017.
The company is also targeting annual production growth of 30% to
35% next year. Continental's average production was 94,852 BOE per
day for the second quarter ended June 30, 2012. Its production
expectation for 2013 relies upon an estimated capital outlay of
$3.4 billion and the completion of 300 net wells.
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 million acres in
the Bakken Shale region. As of June 30, the company had leases on
about 315,675 net acres in the Anadarko Woodford region.
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 most 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 comprise the second most important focus for
Continental's peer company, Houston, Texas-based
EOG Resources Inc.
) is one of the best independents in the E&P sector. It
continues to demonstrate solid execution in its key growth assets,
particularly in the Eagle Ford and Bakken plays. Its crude oil and
condensate production was up almost 52% year over year in the
second quarter of 2012. This was primarily driven by significant
contributions from EOG Resources' Eagle Ford and Bakken plays.
Continental retains a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months.