Innovation through Exploration
About Continental
Continental Resources is an independent oil and natural gas exploration and production company with operations in the Rocky Mountain, Mid-Continent and Gulf Coast regions of the United States. We focus our exploration activities in large new or developing plays that provide opportunities to acquire large, undeveloped acreage positions for future drilling operations. We have been successful in targeting unconventional resource plays, such as the Bakken Shale in Montana and North Dakota, where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies facilitate the economic production of oil and natural gas reserves.
Our total reserves at year-end 2008 were 159.3 MMBoe, an increase of 18% over reserves of 134.6 MMBoe at year-end 2007. We have increased our reserves to this level almost entirely through the drill bit, as opposed to acquisitions. Combined drilling and proved undeveloped additions of 47.6 MMBoe were almost four times our total production of 12.0 MMBoe for 2008.
The following table shows the components of proved reserves.
Of year-end 2008 total reserves, 67% were crude oil. Entering 2009, we had 1,473 net producing wells and more than 2,000 net potential drilling locations. Unconventional resource plays accounted for 85% of proved reserves and 77% of our production.
We increased production 13% in 2008, despite sharp cutbacks in our drilling program from October through December. Production totaled 12 million equivalent barrels for the year, with an exit rate of 37,954 Boepd for the month of December 2008, 27% above our December 2007 exit rate.
Oil and natural gas sales for 2008 were $940 million, an increase of 55% over 2007.
The Company reported EBITDAX of $758 million for 2008, an increase of 61% over the previous year. For a definition of EBITDAX and reconciliation to net income, please see the Company’s annual report on Form 10-K for the year ended December 31, 2008.
For additional information on Continental Resources’ recent operations, please see our current investor presentation.
Our total reserves at year-end 2008 were 159.3 MMBoe, an increase of 18% over reserves of 134.6 MMBoe at year-end 2007. We have increased our reserves to this level almost entirely through the drill bit, as opposed to acquisitions. Combined drilling and proved undeveloped additions of 47.6 MMBoe were almost four times our total production of 12.0 MMBoe for 2008.
The following table shows the components of proved reserves.
| December 31, 2008 | |||||
| Oil | Gas | Total | |||
| (MBbls) | (MMcf) | (MBoe) | |||
| Proved developed producing | 79,845 | 153,038 | 105,351 | ||
| Proved developed non-producing | 542 | 498 | 625 | ||
| Proved undeveloped | 25,852 | 164,602 | 53,286 | ||
| Total proved reserves | 106,239 | 318,138 | 159,262 | ||
Of year-end 2008 total reserves, 67% were crude oil. Entering 2009, we had 1,473 net producing wells and more than 2,000 net potential drilling locations. Unconventional resource plays accounted for 85% of proved reserves and 77% of our production.
We increased production 13% in 2008, despite sharp cutbacks in our drilling program from October through December. Production totaled 12 million equivalent barrels for the year, with an exit rate of 37,954 Boepd for the month of December 2008, 27% above our December 2007 exit rate.
Oil and natural gas sales for 2008 were $940 million, an increase of 55% over 2007.
The Company reported EBITDAX of $758 million for 2008, an increase of 61% over the previous year. For a definition of EBITDAX and reconciliation to net income, please see the Company’s annual report on Form 10-K for the year ended December 31, 2008.
For additional information on Continental Resources’ recent operations, please see our current investor presentation.