Data Points From the December, 2012, CLR Corporate Presentation

CLR corporate presentations can be found here. 

Note: in some cases numbers may be rounded.

The Briefing Begins With The Bakken

Largest Continuous Reservoir of "Unprecedented Magnitude"

Data points:

• for CLR: proved reserves: 610 million bbls of equivalent oil at mid-year, 2012
• current production: >105K boepd
• estimate: almost 60% y/y production growth 2012/2011
• cash margins: >70%

Middle Bakken and First Bench (Upper) of the Three Forks

• full development
• continuous oil field: 15,000 square miles x 640 acres --> 9.6 million acres
• true oil play: in 2010, it was estimated that 24 billion bbls were technically recoverable
• currently less than one (1) well per 1280-acre spacing unit
• full development: 4- to 8- wells per zone for full development

Lower Three Forks

• increases OOIP by almost 60% --> 903 billion bbls
• slide 6: suggests 45 billion bbls recoverable (see MDW calculations below)
• Discusses CLR's exploratory work with the Three Forks (slide 8)
• proved separation of middle Bakken and the upper Three Forks
• theorized four Three Forks benches; proved two; testing a third; plans to test the fourth

CAPEX for Three Forks "produce while exploring" in 2013

• Three Forks accelerated de-risking: $70 million
• 320-acre spacing pilot, two areas; one in southeastern Divide County; one in southeast McKenzie County: $160 million 
• 160-acre spacing pilot, near the Charlotte wells in north-central McKenzie County: $36 million

Single well economics, current (slide 9)

• 10,000-foot lateral; 30 stages
• EUR: 600K
• well costs: single well, $9.2 million; ECO-Pad well, $8.5 million
• rate of return: at $80 oil, 50% RoR; at $60 oil, 20% RoR

Single well drilling vs 6-well pad drilling (slide 10)

• 200 days to drill six single wells; 130 days to drill a 6-well pad
• $30 million to $22 million; $8 million savings

Evacuation capacity (slide 12)

• pipeline and rail through 2017
• currently: 900K bbls committed to pipelines; 900K bbls rails --> 1.8 million bbls; another 1.3 million bbls proposed pipeline

Miscellaneous

• CLR first to send Bakken oil directly to Tesoro Refinery, Anacortes, Washington, September, 2012, rail

Interesting observations, back of the envelope calculations:

• CLR says they lease 10% of the Bakken; with ~ one million acres, that suggests about 10 million acres in the Bakken
• back of the envelope: 8 wells/640 acres. Average EUR of 400,000 bbls. 8x 400,000 = 3,200,000 bbls/640 acres or 5,000 bbls/acre. Ten million acres x 5,000 bbls/acre --> 50 billion bbls. Cross-checking: 1 trillion bbls original oil in place x 5% recovery --> 50 billion bbls; if one cuts this to 8 wells/1280 acres --> 24 billion bbls

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The Briefing Then Switches To the SCOOP (South Central Oklahoma Oil Province)

A New, High-Impact Resource Play

Data points: SCOOP

• dual reservoir: upper and lower Woodford
• 6x the Cana Field
• 3 of the top oil-producing counties in Oklahoma
• 3 billion bbls of oil produced
• 60 reservoirs

Commanding position in the SCOOP (again, some numbers rounded)

• 100,000 acres at end of 2010 (3% held by production)
• 200,000 acres at end of 2012 (20% held by production)
• 2 billion bbls oil equivalent potential to CLR; based on unrisked, 80-acre spacing
• 50% RoR