Continental Resources provides the shale scoop on SpringBoard

By Luke Geiver | January 31, 2019

Continental Resource’s provided investors with an update prior to its Q4 overview on the company’s multi-well development operations in the SCOOP play of Oklahoma. After first explaining their plans in August 2018 to drill and complete multiple wells in the Springer, Sycamore and Woodford formations across a 73-square mile area, CLR told investors in late January 2019 that well results will increase overall production by 10 percent from the project alone by Q3 2019.

With multiple rigs running, the project entails multiple rows of drilling pads. Initial plans called for 7,500 foot laterals but recent laterals have reached closer to 10,000 feet. The project will place three to four wells in the Springer formation, two to four wells in the Sycamore formation and another five to six wells in the Woodford formation. Each formation gains thickness and pressure moving from North to South and the company is finding better production rates in the thicker, over pressured sections of the formation. The first focus area was in an area with the less thick formations.

Although numbers related to rates of return and estimated ultimate recoveries were slightly lower in the recent update, CLR explained that changes to its development plans for the project will actually save the company $125 million in development costs.

Gary Gould, senior vice president of production and resource development, said the company has learned a lot since starting the project. The costs of drilling per lateral foot have decreased by 18 percent thanks to the use of logging while drilling technology and better assembly techniques of drilling-related equipment, he told investors. To reach spud to total depth for the wells in the project required roughly 46 days, but this year, reaching TD will only take 30 days.

While CLR has Bakken wells and acreage areas that provide better rates of return, wells in the SpringBoard project are almost as competitive and give the company highly profitable barrels close to infrastructure. Much of the first row of wells in the project are connected to oil, gas and water takeaway. A major pipeline that connects the wells to Cushing or a local refinery is only 50-miles away.

CLR also worked to gain 75 percent working interest for most its project wells. The positive production results of the oil-heavy wells in combination with the working interest percentage of the wells has the entire team excited for the future development of SpringBoard. And, Jack Stark, president, said the company is already working to develop Project SpringBoard II. Details of the new project and full 2019 plans could be announced in February.