Continental Resources (CLR) held a conference call on August 5, 2010, and made comments on its operations in the Niobrara Shale. The company is accumulating acreage in the Niobrara Shale and now holds 60,000 net acres across Wyoming and Colorado.
“The Niobrara is a huge crude oil resource play. It covers over 3 million acres and has a potential to produce more than 2 billion barrels of oil. We’ve established a strategic position in the play, leasing almost 60,000 net acres and continue to acquire more. We hold acreage in Platt, Laramie, and Goshen Counties in Wyoming and Weld County in Colorado.”
“Our leases are in proximity to several of the most interesting test wells drilled to date. EOG Resources kicked off recent search and drilling with five horizontal wells including the Jake 2-1H, which had an initial production rate of 1,558 barrels of oil equivalent per day and an average of 555 barrels oil per day over its first 90 days.”
“Noble Energy has announced four wells that produced an average of 585 barrels per day of oil over their first 60 days production, including one that averaged 1,000 barrels oil per day. Niobrara development is currently on 640 spacing.”
“We plan to spot our first Niobrara well in the fourth quarter. Continental’s entry into the Niobrara is a natural strategic fit with our expertise and experience in horizontal oil resource plays.”