Leading Bakken oil producer
Continental Resources Inc.
) completed the purchase of various producing and undeveloped
assets in the play from Samson Resources Corp., a unit of private
Kohlberg Kravis Roberts & Co.
CONTL RESOURCES (CLR): Free Stock Analysis
KKR & CO LP (KKR): Free Stock Analysis
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The acquired properties - worth $649.3 million - consist of
119,218 net acres, mainly in Williams and Divide counties, North
Dakota. They yield around 6,500 barrels of oil equivalent per day
The acquisition comprises 45,167 net acres located along the
Nesson Anticline. It will increase Continental's average working
interest to 71% in the area of mutual interest (AMI). Its
previous interest in the same was 46%.
Further, Continental also sold its producing crude oil and
natural gas assets as well as supporting assets in its East
Region for a total value of $125 million. Output from these
properties averaged approximately 1,100 Boe/d.
It is expected that both the deals will reduce production
operating costs per Boe in 2013 and increase yield by 35-40%.
With this purchase in the Bakken, the total holding of the
company in the region will increase to 1.1 million net acres.
Together with other well completion activities, the dealings
added 20 Bakken wells to Continental's 2013 drilling plan.
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 holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months.