Sunday, October 25, 2009

Bakken: CLR


CLR's density projects


For investors: Archives. 

CLR wells on confidential:
  • October 11, 2013: 282
By Date

April 8, 2020: from a reader, during "demand destruction," coronavirus, OPEC+ spat, etc:

CLR has been buying minerals for about 18 months now – on the ground in their drilling units.
They buy under the “mineral resources company” name as well as “North Pike Minerals.”
The only way CLR would be buying any minerals would be if they all fell in their own operated drilling units. However, it wouldn’t surprise me if CLR would be out there looking to acquire another E&P company. Even though there is a lot of work to do left in the Bakken – future drilling locations are starting to run low for everyone.
Also, CLR’s Oklahoma position isn’t all it is cracked up to be (when compared to Bakken):
    • higher drilling costs
    • variable reservoir charcteristics
    • Fluid profile; high GOR
    • target depth change rapidly in very small distances

They have ridiculously high insider ownership (Hamm could easily take them private) and he probably doesn’t care if the “street” would react negatively to the news of an acquisition.
February 18, 2019: "breakout year for debt reduction; cash build"

February 1, 2016: CLR lost almost $700 million on bet the price slump would not last long

January 26, 2016: CLR press release, 2016 CAPEX and producing guidance.

November 6, 2015: corporate update;

September 26, 2015: to supply $4 billion ethane plant in North Dakota; location yet to be announced.

September 9, 2015: CLR to cut CAPEX for rest of year; reduce rigs from 10 to 8 in the Bakken; curtail fracking. 

January, 2015: corporate presentation; CAPEX cut by 41% with oil price slump. 

September 22, 2014: Investor's / Analyst's Day.  

August 18, 2014: CLR announces a 2-1 split.

August 6, 2014: has CLR raised average Bakken/Three Forks well to 815K EUR using new completion techniques?

August 5, 2014: 2Q14 update on pilot projects.

June 4, 2014: CLR applies for crude oil export permit.

May 6, 2014: SeekingAlpha on CLR, after Forbes feature article.

April 17, 2014: feature in Forbes on Harold Hamm.

March 18, 2014: Disclaimer - this is not an investment site. I am posting this because it is the best measure of my concerns regarding CLR. Check in six months and twelve months to see relative return of CLR vs EOG.

February 1, 2014: feature on Harold Hamm, National Review, Halloween, 2013

November 30, 2013: Harold Hamm feature in Newsweek/NBC News.
In the history of oil, this fall is a tipping point, the moment America gurgles past Saudi Arabia and Russia to become the world’s petroleum king.
The man most responsible is Harold Hamm, 67, a drawling, blue-eyed billionaire, a sharecropper’s son who grew to be the richest energy mogul in America. He was the first to profitably “frack” North Dakota oil wells, leading a revolution in the way the nation coaxes energy from the earth and draining momentum from the search for cleaner fuel sources. His company, Continental Resources, has quintupled in value in a matter of years, emerging as a swaggering promoter of eco-friendly, effectively infinite oil — along with all the supposed good that flows from it.
November 16, 2013: CLR has upside of at least 27% -- at SeekingAlpha.

November 13, 2013: Zeits on CLR in the Bakken

November 6, 2013: Hawkinson Unit density test produces at an initial combined rate of 14,850 boe per day from middle Bakken and Three Forks benches one, two and three. CLR will dedicate four rigs to drill mega-pads. CLR will drill 350 wells on 25 pads over the next four to five years.

October 11, 2013: Jim Cramer recommends EOG; writer mentions CLR -- at SeekingAlpha.

September 17, 2013: guidance for 2014. Great, great update

June 15, 2013: update of the divorce proceedings.

May 3, 2013: a closer look at Harold Hamm's beginnings in the Bakken

March 21, 2013: CLR stock drops on news of Hamm contentious divorce, as described / reported by Reuters.

March 21, 2013: CLR CEO to divorce.

December 31, 2012: corporate presentation.

December 11, 2012: CLR TF3 could be another game changer -- Wow, I'm losing track of the number of "game changers" in the Williston Basin: a) the Bakken; b) the Tyler; c) the Three Forks; d) the benches; e) crude-by-rail; f) ONEOK gas gathering and processing; g) Hiway; h) Eco-Pads; i) two wells on a section; j) 14 wells on a spacing unit; k) .....

December 6, 2012: CLR is richly valued -- The article doesn't mention the new original oil in place estimates; the new potential recovery estimates; nor the 1. 5 million barrel-EURs in the better Bakken.

December 6, 2012: Harold Hamm in his own words

December 3, 2012: for investors -- CLR in

October 12, 2012: CLR announces significant new field in Oklahoma.

September 19, 2012: Harold Hamm is #35 on Forbes 400 Richest Americans.

August 10, 2012: Shareholders approve CLR buying Wheatland Oil
Shareholders of Continental Resources, Inc. (NYSE:CLR) have approved the Company's purchase of the assets of Wheatland Oil Inc. of Enid, Oklahoma . Wheatland's principal assets are an ownership of approximately 5% of the interest acquired by Continental Resources in all leases and wells in a defined portion of the Bakken play pursuant to a participation agreement effective January 1, 2002.
August 10, 2012: CLR to significantly raise CAPEX for 2012. Investors must like the news; share prices spike.
Continental Resources Inc , a major driller in North Dakota's Bakken shale, on Thursday said it will increase its 2012 capital expenditures budget to $3 billion, up from a revised $2.3 billion announced in May, because of higher costs and ramped up activity in the shale outpost.

The capital budget revision is the second this year. Early in 2012, Continental had expected to drill 249 net wells with just $1.75 billion, but spent nearly that amount in the first half of the year. It now hopes to drill 330 net wells in 2012.

The Oklahoma-based company has cut the number of rigs it operates in the Bakken in North Dakota and Montana to 19 from 26 in the second quarter and said it is now seeing "anecdotal evidence" of cost reductions in its operations there.
August 10, 2012: Harold Hamm on CBNC video -- US could be energy independent in 10 years; his role in Romney's campaign.

June 2, 2012: Nice update of CLR wells in the Bakken -- Mike Filloon.

May 30, 2012: CLR acquires significant number of Newfield wells/permits.

April 18, 2012: Harold Hamm named to Time Magazine's 100 most influential people in the world.

February 26, 2012: 35,000 more acres for CLR.

February 23, 2012: Oasis corporate presentation, PDF; note slide 15 -- Banner oil pipeline system (Harold Hamm/CLR) and slide 16 -- Hiland gas pipeline system (Harold Hamm /CLR)

January 20, 2012: another human interest story on Harold Hamm.

August 12, 2011: CLR reports out a nice Eco-Pad, with another Eco-Pad in immediate area almost complete. 

August 6, 2011: 2Q11 articles, several.  Red River formation. Deeper oil-bearing zone in the TF? 23 rigs; 5 frack teams. CLR closes in on one million net acres in the Bakken. Notable 2Q11 wells. Some random notes and comments on 2Q11 results.

May 1, 2011: Best article yet on Harold Hamm, Rigzone. 

March 7, 2011: Profile of Harold Hamm, CEO, CLR. 

January 20, 2011: CLR tells ND bankers 4 - 5 times more oil in the Bakken/Three Forks than official estimates. Video link: Fully developed, four wells/1280-acre spacing --> 24 billion barrels.

December 4, 2010: Nice story about Harold Hamm speaking to UND students.

November 24, 2010: Forbes 10 Questions for Harold Hamm.

November 14, 2010: Fluff piece on CLR with Harold Hamm interview.

May 27, 2010: new CLR presentation with some interesting small print.

May 11, 2010: Rattlesnake Eco-Pad (Bridger/Bonneville); NENW 23-146N-96W.

May 5, 2010: Harold Hamm raises EUR by 20% for CLR wells.

April 9, 2010: Increased activity around Williston. Now it's the very, very small Hebron oil field (ten sections with permits for six wells -- all "owned" by CLR.

April 23, 2010
This is getting to be fairly commonplace, but it is still rare enough to deserve its own post.

CLR granted four permits today, putting four wells on one pad at 6-161N-92W in Divide County, in the Dolphin oil field.

The four wells:

18934, Raymo 2-30H, SESE 19-161N-95W
18935, Glasoe 3-19H, SESE 19-161N-95W
18936, Raymo 1-30H, SESE 19-161N-95W
18397, Glasoe 2-19H, SESE 19-161N-95W
April 14, 2010: Overview, presentation.

Mar 16, 2010: CLR announces a slew of great wells. Remember, CLR is now using a new method for calculating IPs, a method that most likely increases the IP, all things being equal. CLR's method is now similar to BEXP's method for determining IPs. Also, the Bice well announced (1,429) was one of CLR's first dual-lateral wells.  See "Wells to Watch" in the sidebar.

March 10, 2010: Richest People in the World, Harold Hamm, tied at #136 with Steve Jobs

February 26, 2010
CLR announces new method for determining IP. Every little bit of information provides a bit more insight into the dynamics of the Bakken. A short article in Oil and Gas Journal points out that due to limited pipeline capacity, CLR is reporting initial production (IP) numbers based on one-day production. According to OGJ, "[t]he company said that its Hendrickson 1-36H well in McKenzie County, ND, set a company operated IP mark of 1,990 boepd on a 7-day test. The well’s best single-day rate was 2,105 boepd. However, the company will report single-day initial production tests for Bakken wells because gas pipeline capacity limits are restricting 7-day rates at some wells, if only in the first few weeks."
Dual-reservoir development beginning with Omar 2-1H and Bice 2-29H. 50 percent of CLR's ND acreage is prospective for dual development (Bakken/TFS) -- dual development means an additional 10 million boe of reserve potential. 
February 25, 2010: conference call -- CLR plans to have 16 rigs in the Bakken by mid-year, with 15 of those in North Dakota. At last count, just a few days ago, CLR had 12 rigs in North Dakota.

February 19, 2010
Human interest story on CLR/CEO, Harold Hamm. -- the link was to a television news site; no longer there.
February 7, 2010
The final CLR report regarding the question of whether the Bakken formation communicates with the Three Forks Sanish.
January 21, 2010:
Most recent news on EcoPads. CLR says it will drill 24 wells along the Williams-Divide county borders using the EcoPad concept. They will drill eight (8) wells on just 14 acres of land; four (4) wells on each pad, with the two pads abutting each other. Regulators have to approve the CLR proposal. Most interesting: the wells will be offset 50 feet from the section line, rather than the customary 500 feet. This will add 450 feet per lateral per well that would normally go undeveloped.  The article is in the Tioga-Crosby Journal online.
January 20, 2010, philanthropy -- nice story

January 15, 2010, discussion thread
One can see this information in a press release
Note the comments in this discussion thread
At least in this area, it appears Bakken and TFS are separate formations
One of the wells is a record for CLR 
January 15, 2010
CLR now has nine (9) active rigs in North Dakota
January 5, 2010, press release:  Discussion thread
7 rigs at end of 2009
15 rigs scheduled for mid-2010, 6 focused on Eco-Pads
Initial production results increased an average of 27% over previous year
November 17, 2009: Merrill Lynch/Bank of America presentation.
Currently 6 rigs; will exit 2009 with 7 rigs; 15 rigs in mid-2010 
Expanding west of the Nesson Anticline; new technology play
Wells are now being completed in 24 days vs 45 days in 2008
Eco-Pads: 8 laterals from 4 wells on one pad
Plan: double proved reserves in five (5) years
10+ year inventory to drill
One of very few companies with focus on oil; oil 76% / natural gas 24%
November 6, 2009: nice story of Harold Hamm and his return to North Dakota,

October 30, 2009: Interview with Harold Hamm. Ready to drill.

October 25, 2009: CLR increases acreage.
CLR announced that it has recently added 36,000 net acres to its holdings in North Dakota Bakken, including 32,000 net acres in Mercer County, adjacent to other Continental acreage. The Company's total acreage position is now 577,000 net acres in the Bakken shale play of North Dakota and Montana. Press release, September 4, 2008.