Continental Resources Provides 2007 Guidance and Second Quarter Conference Call Information
(Logo: http://www.newscom.com/cgi-bin/prnh/20070501/DATU029LOGO) Year Ended December 31, 2007 Production volumes: Oil (Mbbls) 8,400 - 8,800 Gas (MMcf) 13,800 - 15,000 Oil equivalent (Mboe) 10,700 - 11,300 Price differentials (1): Oil (per bbl) $5.00 - $8.00 Gas (per Mcf) $1.00 - $1.50 Operating costs and expenses: Production expense (per boe) $6.50 - $7.20 Production tax (percent of sales) 5.2% - 5.7% Depreciation, depletion, amortization and accretion (per boe) $8.25 - $8.75 General and administrative (per boe) (2) $2.05 - $2.25 Non-cash stock-based compensation (per boe) $1.20 - $1.35 Net oil and natural gas services income $7,000 - $8,000 (in thousands) Tax expense in 2nd quarter for C-Corp conversion (in thousands) $180,000 - $190,000 Income tax rate (percent of post-IPO pre-tax net income) 38% Percent deferred 97% (1) Differential to calendar month average NYMEX futures price for oil and to average of last three trading days of prompt NYMEX futures contract for gas. (2) Excludes non-cash stock-based compensation.
Continental Resources' capital expenditure budget for 2007 and expected completed gross and net wells are set forth in the following table:
Gross Net CAPEX Wells Wells (in millions) Drilling: Red River Units $126 51 48 Montana Bakken Shale 57 31 21 North Dakota Bakken Shale 71 37 16 Other Rocky Mountain 10 12 8 Oklahoma Woodford Shale 82 123 18 Other Mid-Continent 13 28 26 Gulf Coast 4 3 2 Total $363 285 139 Acreage 32 Workovers and facilities 31 Seismic 7 Other 4 Total $437
The Company plans to drill 51 increased density wells and 20 re-entry wells within the Cedar Hills and Medicine Pole Hills Units to accelerate production and enhance sweep efficiency of the high pressure air and waterflood operations. Within the Montana Bakken Shale play, the Company is completing 640-acre spacing development and testing the productivity of 320-acre infield wells and 640-acre tri-lateral wells in the northern portion of the field.
In the Company's two principal emerging plays, the North Dakota Bakken Shale and Oklahoma Woodford Shale, the Company currently owns approximately 288,000 and 44,000 net undeveloped acres, respectively. The Company has drilled relatively few wells in the plays at this time and, as a result, reserve estimates are subject to uncertainty. However, the Company is currently using average gross per-well reserves in the North Dakota Bakken Shale of approximately 315 Mboe and, in the Oklahoma Woodford Shale, 3 Bcfe for economic modeling purposes. In the Oklahoma Woodford Shale, the Company expects to participate in approximately 100 gross (7 net) outside operated wells.
Second Quarter 2007 Conference Call
The Company has scheduled its 2007 first quarter earnings press release to be issued before the opening of trading on the New York Stock Exchange on Monday, August 6, 2007. Continental Resources will host a conference call on Monday, August 6, 2007, at 10:00 a.m. Central Time to discuss this press release. Interested parties may listen to the conference call via the Company's website at http://www.contres.com/ or by dialing 866-271-6130. The passcode is 44488326. A replay of the conference call will be available for 30 days on the Company's website or by dialing 888-286-8010. The passcode is 23421529.
The Company also announced its participation in the A. G. Edwards' E&P Conference to be held in New York City on July 17 - July 18, 2007. President Mark E. Monroe will present at the conference on Wednesday, July 18, 2007, at 10:30 a.m. EDT. Mr. Monroe's presentation will be webcast live on the Company's website at http://www.contres.com/.
About Continental Resources
Continental Resources is an independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States. The Company focuses its operations in large new or developing plays where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies provide the means to economically develop and produce oil and natural gas reserves from unconventional formations. The Company completed its initial public offering in May 2007.
This press release includes forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the Company's control. All information, other than historical facts included in this press release, regarding the Company's strategy, future operations, drilling plans, estimated reserves, future production, estimated capital expenditures, projected costs, the potential of drilling prospects and other plans and objectives of management are forward-looking information. All forward-looking statements speak only as of the date of this presentation. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Actual results may differ materially from those anticipated due to many factors, including oil and natural gas prices, industry conditions, drilling results, uncertainties in estimating reserves, uncertainties in estimating future production from enhanced recovery operations, availability of drilling rigs and other services, availability of crude oil and natural gas transportation capacity, availability of capital resources and other factors listed in reports the Company has filed or may file with the Securities and Exchange Commission.
For Media inquiries contact: Don Fischbach Tel: + 1 (580) 233-8955
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SOURCE: Continental Resources
CONTACT: Don Fischbach, of Continental Resources, Inc., +1-580-233-8955
Web site: http://www.contres.com/