OKLAHOMA CITY (AP) - Continental Resources said it will take advantage of expected higher oil prices and plans to spend $1.95 billion this year, mostly on drilling and completion activities.
The Oklahoma-based oil and natural gas exploration and production company said Wednesday that it will more than double its capital expenditure budget in 2017, the Oklahoman (https://bit.ly/2k5nXrx ) reported. The company’s 2016 budget was $920 million.
“We are capitalizing on the exceptional performance delivered by our operating teams the last two years,” CEO Harold Hamm said in a statement. “Our disciplined 2017 budget and growth plan will position the company for multiple years of double-digit production growth.”
Continental is anticipating that the 2017 budget will lift its production range from 250,000 to 260,000 barrels of oil equivalent per day at the end of the year.
The company’s 2017 budget estimates an average sales price of $55 per barrel of oil and $3.14 per thousand cubic feet of natural gas. The company said it expects to generate an additional $200 million with the average full-year oil price of $60.
Much of the budget will focus on finishing the company’s inventory of incomplete wells it drilled over the past two years while the industry suffered.
In western North Dakota, the company is expected to finish 131 wells this year, cutting its year-end 2017 inventory to 140 wells. The company also said it will keep four drilling rigs active in the area throughout the year.
Continental plans to finish 132 wells in Oklahoma and operate an average of 16 drilling rigs. The company plans to average four completion crews in the state.
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This story has been corrected to show the company’s 2016 budget was $920 million, not $920,000.
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Information from: The Oklahoman, https://www.newsok.com
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