Continental agrees to sell 80,000 acres in North Dakota, Montana

Continental Resources Inc., Oklahoma City, has agreed to sell nonstrategic properties in North Dakota and Montana to an undisclosed buyer for $222 million.

The sale includes 68,000 net acres of leasehold primarily in western Williams County, ND, and 12,000 net acres in Roosevelt County, Mont. It covers net production of 2,800 boe/d.

“This is our third sale of nonstrategic assets this year, with total expected proceeds of more than $600 million,” said Harold Hamm, Continental chairman and chief executive officer. In May, the firm reported the sale of 132,000 net acres of leasehold in the Washakie basin of Wyoming for $110 million. On Aug. 3, Continental said it had signed an agreement with an undisclosed buyer to sell 29,500 net acres of nonstrategic leasehold in the eastern SCOOP play in Oklahoma for $281 million.

Meanwhile, Continental has invested $560 million in drilled but uncompleted wells (DUCs), including both operated and nonoperated DUCs. The firm currently has 215 gross operated DUCs in inventory, of which 165 are in the Bakken. Continental expects the total to grow to 240 gross operated DUCs at yearend, with 190 in the Bakken.

The firm says its Bakken DUCs have an average estimated ultimate recovery (EUR) of 850,000 boe/well and can be completed at an average cost of $3-3.5 million/well.

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