CLR's Investor Day Presentation

The presentation can be found at CLR's website. I had a fairly fast wi-fi connection at the Belmont, MA, Starbucks, and it still took about twelve minutes to download. Be prepared.

CLR's legacy of success:

• Cedar Hills field: first field developed completely with horizontal drilling
• Elm Coulee field: unlocked the code with horizontal drilling and open hole frac
• ND Bakken: first economic well that was horizontally drilled with a staged frac
• ND Bakken: proved the Three Forks as a separate reservoir
• Anadarko Woodford: extended the play significantly northwest and southeast
• today: extending laterals up to three miles (2012)

Goals, past (production):

• 2010: 3x production year-end 2009 through year-end 2013, to 112 million boepd
• the 2010 goal will be achieved 18 months early (July, 2012)
• the 2009 production had been 13.6 million boepd; the 2014 goal was 41 million boepd

Other operators (as of 2Q12) - oil production

• CLR: #1 oil  producer in the Williston Basin - 8 million bbls
• HES: 6 million bbls
• WLL: 5.2 million bbls
• EOG: 4.9 million bbls
• COP: 3 million bbls
• CLR and Hess accelerating; WLL, EOG, COP fairly flat

Goal, past (proved reserves):

• 3x proved reserved year-end 2009 through year-end 2014
• proved reserves, 2009: 257 million boe
• proved reserves, 2014, goal: 771 million boe

Ten-year growth strategy:

• accelerate oil-rich inventory
• capitalize on growth platforms in place (Bakken, Anadarko Woodford)
• generate new oil plays

Growth potential, growing the Bakken through exploration

• USGS, 2008: 3.7 billion bbls technically recoverable oil
• CLR, 2010: 24 billion bbls technically recoverable oil
• CLR, 2012: 903 billion bbls of oi in place

CLR net acreage in the Bakken:

• 2009: 645,347
• 2010: 855, 936
• 2011: 915,863  
• 2012: 972,056

CAPEX, 2013 - 2014 (rounded):

• $850 million: $235 development; $60 dev pilot; $80 lower TF accelerated de-risking; $60 other northern region new plays; $150 southern region new plays; $240 leasehold;
• 110 net wells

Wells costing $9.5 to $11.3 million; target -- $8.2 million

Slide 33: demand for Bakken growing faster than production

2012 goal

• 3x production by year-end 2017: from 97K boepd today to 300,000 boepd in 2017
• 3x proved reserves by year-end 2017: from 508 million boe to 1.524 billion boe in 2017
• CLR will move from independents (CXO, DNR, PXD, WLL, XEC, SD) to join the super-independent (EOG, DVN, APC, APA)