Tuesday -- February 3, 2015; CLR Announces Proved Reserves

Active rigs:

	2/3/2015	02/03/2014	02/03/2013	02/03/2012	02/03/2011
Active Rigs	145	188	187	202	167

RBN Energy: Update of the Permian and Eagle Ford.

The recent collapse in oil prices has thrown into question the future levels of crude, natural gas and NGL production in, among other places, the Permian Basin and the Eagle Ford. That will lead midstream companies to take a fresh look at the two regions’ existing and planned infrastructure to make sure they still are in line with pipeline, processing and other needs. Today, we conclude our series on the two regions’ natural gas processing plants, NGL pipelines and fractionators with a look at where we stand, and what’s ahead.

Drilling activity in both the Permian Basin and the Eagle Ford has been driven primarily by the regions’ prolific oil reserves, though associated natural gas and NGL production (and the Eagle Ford’s prolific production of condensate) have certainly augmented the regions’ attractiveness. With oil as the driver, it’s no surprise that the recent free fall in oil prices has prompted Permian and Eagle Ford producers to rethink their 2015 drilling capex. And that, of course, could affect how much oil, gas and NGLs the regions will produce this year and beyond.

Our latest drill-down report, It Don’t Come Easy—Low Crude Prices, Producer Breakevens and Drilling Economics, reveals how much things have changed—and how quickly.

In the fall of 2014, with oil at $90/Bbl and natural gas at $3.75/MMBTU, the internal rate of return (IRR) for the Delaware Basin portion of the Permian was a strong 40%, as was the oil-focused portion of the Eagle Ford; the IRR for the adjoining “wet gas” part of the Eagle Ford was a still-healthy 24%.

Fast-forward to late January, with oil at around $45 and gas at $3, and the IRR for the Permian/Delaware was down to a measly 3%; the IRR for the Eagle Ford/oil area is at breakeven (0%) and in Eagle Ford/wet-gas area the IRR is minus 3%. If, as expected, producers in the Permian and Eagle Ford focus their capex dollars on their highest-yield “sweet spot” wells, the IRR numbers improve significantly. In the Permian, for example, the IRR for a sweet spot well would be 19% with oil at $45, 38% with oil at $60, and 58% with oil at $75—certainly enough to justified continued drilling. The same holds true in the Eagle Ford (though the IRRs are somewhat lower): a 7% IRR for a sweet spot well at $45 oil, 21% at $60 oil and 39% at $75 oil.

Radio Shack: gone? One-half of stores being closed; one-half being sold to Sprint? Radio Shack won't comment.

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CLR Press Release
Link here

Continental Resources Announces Proved Reserves And Production For 2014 Continental Resources
Continental Resources, Inc. has added a news release to its Investor Relations website.

Continental Resources Announces Proved Reserves And Production For 2014.

• Proved Reserves Total 1.35 Billion Boe at Year-End 2014, a 25% Increase over Year-End 2013
• Full-Year 2014 Production Totals 63.6 Million Boe, a 28% Increase over 2013
• Fourth Quarter and Full-Year 2014 Earnings Announcement Planned for Tuesday, February 24, 2015

Continental Resources, Inc. today announced proved reserves of 1.35 billion barrels of oil equivalent (Boe) at December 31, 2014 , an increase of 267 million barrels of oil equivalent (MMBoe) or 25% compared with year-end 2013. Year-end 2014 proved reserves were 83% operated by the Company, 36% proved developed producing (PDP), and 64% crude oil. Continental has grown its proved reserves at a compound annual growth rate of 39% per year since year-end 2010.

PDP reserves increased 21% from year-end 2013 to 490 MMBoe at December 31, 2014 . The Company had 2,994 gross (1,565 net) proved undeveloped (PUD) locations at year-end 2014. The Bakken accounted for 82% of PUD locations at year-end. Continental's year-end 2014 proved reserves had a net present value discounted at 10% (PV-10) of $22.8 billion , a 13% increase over PV-10 of $20.2 billion for year-end 2013 proved reserves.

The Bakken accounted for 866 MMBoe of Continental's year-end 2014 proved reserves, with a PV-10 value of $15.2 billion . SCOOP Woodford and SCOOP Springer accounted for 370 MMBoe of 2014 proved reserves, a 72% increase over proved reserves of 215 MMBoe at year-end 2013. The PV-10 value of the Company's SCOOP proved reserves was $5.5 billion at year-end 2014.

Harold G. Hamm , Chairman and Chief Executive Officer, commented," 2014 marks the 7th straight year since our IPO we have consistently delivered significant reserve and production growth. Our core assets in the Bakken of North Dakota and SCOOP Woodford/Springer in Oklahoma continue to provide exceptional results and are a testament to the quality of the base assets and the ability of our teams. Our SCOOP Woodford discovery in 2009 has grown into one of the best new plays in North America along with our discovery announcement in 2014 of the Springer horizontally drilled formation, our Company's highest rate of return oil play. Our asset quality and resource inventory are world-class."

Production Grows 28% Year-Over-Year

Estimated total production for full-year 2014 was 63.6 MMBoe, an increase of 28% compared to full-year 2013. Crude oil accounted for 70% of total production, or 44.5 million barrels, in 2014. Estimated natural gas production for the year was 114.3 billion cubic feet. The Company reached a new net production milestone of 200,000 Boe per day in late December 2014.

Fourth Quarter 2014 and Full-Year 2014 Earnings Announcement and Conference Call

Continental plans to announce fourth quarter 2014 and full-year 2014 earnings on Tuesday, February 24, 2015 , following the close of trading on the New York Stock Exchange . The Company plans to host a conference call to discuss earnings results on Wednesday, February 25, 2015, at 12 p.m. ET.