Continental on track to increase oil, gas production

Feb. 16, 2018
Continental Resources Inc. increased its oil and natural gas production 37% to nearly 287,000 boe/d during fourth-quarter 2017 compared with the same period a year earlier. Continental plans to increase production in 2018, the company said in a preliminary statement on 2017 results.

Continental Resources Inc. increased its oil and natural gas production 37% to nearly 287,000 boe/d during fourth-quarter 2017 compared with the same period a year earlier. Continental plans to increase production in 2018, the company said in a preliminary statement on 2017 results.

During 2018, Continental expects to run six rigs to drill 142 wells in North Dakota’s Bakken formation and to run 15 rigs to drill 118 wells in Oklahoma’s SCOOP and STACK plays.

Continental executives plan to spend about $2.3 billion in 2018. In November 2017, they said they were on track to spend about $1.95 billion in 2017.

Chief Executive Officer Harold Hamm said increased free cash flow prompted an increased 2018 drilling budget compared with 2017.

“This year, Continental expects to set itself apart by generating up to $900 million of free cash flow while delivering top-tier production growth,” Hamm said.

Hamm said Continental prepared its 2018 budget assuming an average oil price of $60/bbl and a gas price of $3/Mcf.

Continental hedged about 80% of gas production at an average price of $2.88/Mcf, but it has no oil hedges, “allowing the company to fully participate in the upside of oil prices,” Hamm said.