1Q13 Milestones: CLR. Will Reduce Rigs To 20 (Efficiencies); Drilling All Four Benches Of The Three Forks

Some random data points for CLR, 1Q13 (some numbers rounded).

Prices:

• average realized sales price (excluding effects of derivatives), oil: $90
• average realized sales price (excluding effects of derivatives), NG: $5
• average realized sales price (excluding effects of derivatives), boe: $72
• hedging loss: $0.63/bbl boe

Production expense:

• $5.70/boe, significantly lower than $5.90/boe from 4Q12
• 10.9 million boe x 20 cents/boe savings = $2 million in savings past quarter on production expense
• expense higher than annual guidance ($5.20 to $5.60) due to typical winter weather
• expectation: production cost to decrease through majority of rest of year

Other select expenses, cash, debt:

• Production taxes:8.2% of oil and natural gas sales
• DD&A: $20/boe
• B&A: $3/boe
• Total cash: $60 million
• Total debt: $4 billion

Bakken Ops

• net production: 76,900 boepd; up 12% from previous quarter; up 60% from year ago
• 22 rigs
• 1.2 million net acres
• 66 net wells in  1Q13
• backlog: 80 gross wells drilled but not completed; down from 4Q12, but will grow at various times during the year due to pad drilling; 
• ND wells: 84% oil; IPs averaged 1,125 boepd; EUR 603,000;
• MT wells: 87% oil; IPs averaged 670 boepd; EUR 430,000;

22-well Lower Three Forks exploratory program:

• Barney 2-29H-2, 2nd bench, IP of 1,075 boe, 16 miles north of Charlotte pad
• Stedman 2-24H-2, 2nd bench, IP of 1,030 boe, Stedman pad, western flank near Montana stateline, 35 miles NW of Charlotte pad,  
• Stedman 3-24H-3, 3rd bench, IP of 465, Stedman pad, see above
• inclusive of these wells: 6 producing wells in the lower benches with average 1,170 boepd

Charlotte pad and Angus:

• Charlotte 2-22H, 2nd bench, 116K boe over 18 months
•  Charlotte 3-22H, 3rd bench, 55K boe over 5.5 months
• Angus 209H-2, 2nd bench, 53K boe over 2 months

Four pilot density projects:

• test 320-acre and 160-acre spacing in Middle Bakken and first three benches of the Three Forks
• 47 gross wells in the pilot density program
• Hawkinson pad, Dunn County: has drilled 8 wells; currently drilling the 9th on its first 320-acre pilog density project
• Wahpeton pad, McKenzie County: drilling underway on the 13-well, 160-acre pilot
• Tangsrud pad, Divide County: drilling underway on 12-well, 320-acre pilot
• Rollefstad pad, 320-acre pilot; scheduled to spud in 2H13
• Summary: 47-well pilot density program: 10 wells currently drilling; 10 wells waiting completiong; 27 wells yet to be drilled
• Once each pad has reached IP, the wells will be announced together as part of quarterly results

Rigs

• 22 currently; but will reduce to 20 due to efficiencies