The Fine Print: This Time It's Good for CLR

Continental Resources has a new presentation out today.

Check out slide 20.  CLR says it has a "plenty of running room."

CLR estimates it has 800 unbooked wells in the middle Bakken (500) and the Three Forks Sanish (300), with an additional reserve potential of 210 million barrels of oil equivalent in the middle Bakken and 125 million barrels of oil equivalent in the Three Forks Sanish.

This is what caught my eye, the small print: CLR's internal economic model is based on gross reserves per well of 518,000 barrels oil equivalent for the North Dakota Bakken and assumes one (1) well per section for the North Dakota Bakken.

When I look at the GIS map server, I don't see many sections in the "older" producing areas with only one well. Many sections will have at least two wells, one targeting the middle Bakken and one targeting the Three Forks Sanish. In addition, the 518,000 boe seems to be very conservative.