Continental Resources (NYSE: CLR), one of the top producers in the Bakken formation, has announced that the company’s proved reserves and production rates are continuing to grow with each passing year.
The company reports that as of December 31, 2014, its proved reserves increased from the prior year by 267 million barrels of oil equivalent (MMBoe), or 25 percent. Its current proved reserves are reported to be 1.35 billion barrels of oil equivalent (Boe). At the end of last year, the company operated 83 percent of the reserves. Continental’s proved reserves have grown at a compounded annual rate of 39 percent since the end of 2010.
When compared to the year-end figures from 2013, the proved developed producing reserves increased 21 percent to 490 MMBoe by the end of 2014. Additionally, the company had 2,994 gross (1,565 net) proved undeveloped locations at the end of last year. Of these proved but undeveloped locations, 82 percent are located in the Bakken formation. The company’s proved reserves at the end of 2014 had a net present value of $22.8 billion, a 13 percent increase from the year-end 2013 figures.
In a press release, Continental Chairman and CEO Harold Hamm comented, “2014 marks the seventh straight year since our [initial public offering] we have consistently delivered significant reserve and production growth. Our core assets in the Bakken of North Dakota … continue to provide exceptional results and are a testament to the quality of the base assets and the ability of our teams.”
The Bakken formation accounted for 866 MMBoe of the company’s year-end 2014 proved reserves, and its present value, discounted by 10 percent, is reported to be $15.2 billion. For the entirety of 2014, estimated total production from the company’s combined assets was 63.6 MMBoe, an increase of 28 percent compared to the previous year. Crude oil production accounted for 70 percent, or 44.5 million barrels, of production in 2014. Natural gas production for last year is estimated to be 114.3 billion cubic feet. In late December 2014, Continental reached a new net production milestone of 200,000 Boe per day. The company plans to announce its fourth quarter and full-year earnings for 2014 later this month.