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| Continental Wants “Super Pad Wells” |
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Continental Resources sees real potential in creating “super pad wells” two tap into the Bakken and Sanish/Three Forks zones from the same location as it tightens its belt on Williston Basin operations. The company believes that because of the success of drilling wells in both zones that they are completely separate from each other. Harold Hamm, CEO and chairman of the Enid, OK company, said he envisions future drilling of horizontal wells with two laterals going in one direction to tap into the Bakken zone and two in the other direction to siphon oil from the Sanish zone. The company is the largest operator in North Dakota and suffered a net first quarter loss of $4.6 million—partially attributed to putting 216,000 barrels of crude oil storage over the winter. Continental plans on running two rigs in North Dakota this year, compared to ten in Oct., 2008. It has completed 26 gross wells, producing at an average rate of 489 BOPD during the seven-day initial production tests in the first quarter. The initial production for its Samish wells completed in the first quartered averaged 503 BOPD in seven-day IP tests. In a conference call with financial analysts May 7, Hamm said the differential in March for crude oil on outgoing pipelines was $4 less than prevailing market prices. Hamm said he believes the differential will get down in the $2-$4 range as more pipeline capacity comes on next year. The company is no longer offloading crude oil onto rail cars as it was doing last year, Hamm said. The cost differential shipping by rail was $5 to $6 a barrel higher than pipeline tariffs, he said. Several locations are already built for new wells and when crude oil prices move up to $60 a barrel, Hamm expects to see more rig activity.
Source: hotlineprinting.com
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