STACK

The STACK Meramec play in Oklahoma emerged as a star performer for Continental in 2016. It was one of the few U.S. resource plays that consistently attracted additional industry drilling rigs throughout the year.

Continental set out early in the year to demonstrate that a large over-pressured window of oil extended across Blaine County into Dewey County, transitioning to condensate and dry gas to the southwest into Custer County.

This was a unique geologic concept, and in just 12 months we proved it to be true and achieved exceptional success throughout STACK, completing some of the best producing wells in Continental’s history.

Following on our initial success with the Ludwig 1-22-15XH, we completed seven additional wells in the Ludwig unit. This was our first fully developed multi-zone Meramec density test in STACK. In total, the eight Ludwig wells in the test flowed 21,354 Boe per day in their initial test periods, with 70% of that production being oil.

To date, we have de-risked approximately 47,000 net acres in the over-pressured oil window, and this area contains 55 operated units ready for development. We expect to target an average of two Meramec zones and the Woodford in each unit, with an average of four wells per zone. In 2017, we plan to complete five of these units in the over-pressured oil window and one in the over pressured condensate window. The impact of developing the total 55 units should be a key driver of our production growth moving forward.

Moving 17 miles southwest of the Ludwig, we completed the Boden 1-15-10XH well, our first test in the over-pressured condensate window. It flowed more than 3,500 BOE per day, including 1,000 barrels of oil per day. We followed the Boden success later in the year with the Angus Trust 1-4 33XH, immediately north of the Boden. The Angus Trust set a new condensate well record for Continental, flowing initially at 4,640 BOE per day, including 2,100 barrels of oil.

Finally, early in 2017 Continental announced results from its first three wells in the gas window of the play. These were prolific wells that produced more than 20 million cubic feet of natural gas each with flowing casing pressures ranging from 5,900 to 7,700 psi. This “Deep STACK” area represents exceptional future value for the Company.

The impact STACK has had on Continental in just one year has been exceptional. We believe STACK could add up to 35% to Continental’s net unrisked resource potential.

Our key focus in 2017 is further development of the over-pressured oil window of the play, while completing our first density test in the condensate window at the Angus Trust unit. With over 200,000 net acres under lease, we have clearly established STACK as a multi-decade driver of production growth for Continental.