Transcript -- SeekingAlpha -- CLR -- 1Q12 -- CLR Will Update EURs in 2Q12 Conference Call

For newbies: there is a lot of incredibly interesting information in this conference call. There are things in this conference call that tell me we are still in the first innings of this boom.

Link here.

Data points:

• strong cash flow was key first quarter highlight -- this is the opening statement
• comments regarding pricing -- see this link also
• nearly 90% of natural gas is captured; not flared; much better than what NDIC is reporting statewide
• fracking water is trucked in but about 30% of flow-back is piped away
• upgrading older rigs --> newer rigs 
• increasing oil / natural gas ratio; changing drilling rig locations to reflect this
• long discussion regarding additional payzones in the Three Forks (separate stand-alone post)
• 320-acre development project called Midnight Run project (separate stand-alone post, later)

Cafe Music by Schoenfield, Lincoln Trio

Q&A

• CLR is increasing their non-operated well activity, because more rigs coming into the Bakken
• analyst suggests wells are costing $10.8 million; CLR suggests the number is closer to $8 million
• again, discussion regarding price differentials
• 90% of acreage likely amenable to Eco-Pad drilling
• the $550 million in crease in CAPEX excited the analysts; ALL OF IT WILL GO TO THE BAKKEN
• 2nd bench TFS: EURs of 650,000
• increased production estimates for the Bakken: due to better EURs or simply more wells? both
• switched from 24- to 30-stage fracks this past year; sprinkling in some 40-stage fracks
• budget originally built on EURs of 603,000 bbls; telegraphs that EURs are going up; CLR WLL UPDATE THE 603,000 EUR in 2Q12
• CLR telegraphs that CLR could acquire more Bakken acreage; always parcels available

HUMOR:

"Well, we have some risk in there, and that's mainly weather-related risk that we have in there. For the next 3 or 4 months, we have the rainy season up there, so have some risk on that." Comment: rainy season in North Dakota! LOL. Speaker talks as if monsoon season about to start. Rain will have minimal impact on oil operations in North Dakota based on what I remember growing up in North Dakota! [May 10, 2012: Dickinson Press complaining not enough rain; getting too dry. This is the North Dakota I remember.]