Leading Bakken oil producer,
Continental Resources Inc.
) announced that its total proven oil and gas reserves for 2012
increased by 54.0% to 785 MMBoe (million barrels of oil
equivalent) year over year.
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The growth was mainly backed by exploration and development
activity. Accelerated production in the Bakken play of North
Dakota and Montana and increased production in South Central
Oklahoma Oil Province (SCOOP) also contributed to the growth.
Continental is the leading leaseholder in the Bakken, with a net
acreage of about 1.1 million.
Continental's total 2012 proved reserves consisted 39.0% proved
developed producing (PDP) versus 40.0% at year-end 2011. The
company also operated 85.0% of its total proved reserves in 2012,
1.0% lower than year-end 2011.
Continental's proven crude oil reserves for 2012 represented
72.0%, an increase of 8.0% from the 2011 level. The growth was
higher even with two crude-oil concentrated divestitures.
Continental plans two key exploration programs for 2013. The
first one is to test the productivity of lower benches of the
Bakken Three Forks formation with a 14-well program at locations
throughout the play. As per the second program, the company will
test the density of the wells in Middle Bakken and the first
three benches of the Three Forks zone.
Oklahoma City-based Continental is an independent exploration and
production (E&P) company focused on the Bakken, Cana and
Niobrara shale plays. The company operates in the North, South
and Eastern regions of the U.S. Its North region is in the 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 appear most
promising for Continental.
Continental currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
However, certain other U.S. exploration and production firms like
Breitburn Energy Partners L.P.
Cabot Oil & Gas Corporation
Memorial Production Partners L.P.
) are expected to significantly outperform the equity market in
the next one to three months. All the three stocks currently hold
Zacks Rank #1 (Strong Buy).