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Continental Touts Latest Bakken Step-Out Well Results; Will Slow Activity

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Continental Resources, Inc. announced first quarter 2019 operating and financial results.

Based on our chart below, Continental will most likely have to slow down activity since at current run rate the company would outspend by $800 million.  The company said "That is what we see second and third quarter coming down relative to the first quarter, fourth quarter down from both of those second, third, probably relatively consistent with each other. "

Production Update: 1Q19 Avg. Daily Oil Production up 18% YOY

First quarter 2019 production increased 16% over first quarter 2018, averaging 332 MBOEPD and a +3% growth seqentially.

• Q1 oil production increased 18% over first quarter 2018, averaging 194 MBOPD

• Q1 natural gas production increased 12% over first quarter 2018, averaging 829.9 Mmcf/d

Production in Continental's "Big Three" plays (Bakken, SCOOP & STACK) have all increased YOY. However, the STACK output has declined from 4Q18:

Production By Region

Bakken

3 Strategic Step-Out Wells Deliver Excellent Results

Continental completed 55 gross (40 net) operated wells with first production. These wells flowed at an average initial 24-hour rate per well of 2,300 Boe per day, with 80% of the production being oil.

Oklahoma

SpringBoard: Oil Growth Ahead of Schedule; Avg. ~14,000 Net Bopd in April (28 Days)

Project SpringBoard oil production is growing ahead of schedule, averaging ~14,000 Bo per day in the first 28 days of April 2019. The Company has updated its SpringBoard oil production growth target to 18,000 Bo per day in third quarter 2019, compared to the initial target of 16,500 Bo per day. Cycle time improvements and higher early time well productivity are accelerating production growth and enabling the Company to achieve its objectives for 2019 with 25% fewer rigs. The Company currently has 9 rigs drilling, 33 wells waiting on completion and 39 wells producing in Project SpringBoard.

STACK: Continues to Deliver Outstanding Results

The Company's first quarter 2019 STACK production increased 6% over first quarter 2018, averaging 56,513 Boe per day. During the quarter, the Company completed 9 gross (5 net) operated wells with first production in 2019.

In the over-pressured condensate window, the 5-well Tolbert unit flowed at a combined initial rate of 18,700 Boe per day, averaging 3,740 Boe per day per well, which includes 1,180 Bo per day per well. In the over-pressured oil window, the 3-well Lugene unit flowed at a combined initial rate of 9,270 Boe per day, averaging 3,090 Boe per day per well, which includes 1,540 Bo per day per well. The Tolbert unit was developed with 2-mile laterals and the Lugene unit with 1-mile laterals. The Company also completed its first 3-mile Meramec well in STACK. The Blondie 1-6-7-18XHM 3-mile lateral flowed at an initial rate of 3,400 Boe per day, which includes 2,460 Bo per day per well.