Continental Resources Announces Agreements To Purchase Bakken Assets For $650
Million And To Divest East Region Assets For $125 Million
OKLAHOMA CITY, Nov. 7, 2012
OKLAHOMA CITY, Nov. 7, 2012 /PRNewswire/ -- Continental Resources, Inc. (NYSE:
CLR) announced today it has entered into an agreement to acquire certain
Bakken producing and undeveloped properties for $650 million. The property
includes leasehold of approximately 120,000 net acres, primarily in Divide and
Williams counties, North Dakota, and production of approximately 6,500 barrels
of oil equivalent per day (Boepd).
Continental is currently the largest leaseholder in the Bakken, with 984,040
net acres as of September 30, 2012. If completed, the proposed acquisition
will increase this total to 1.1 million net acres.
In addition, Continental announced it has entered into an agreement to sell
its producing crude oil and natural gas properties and supporting assets in
its East Region for cash proceeds of $125 million. The East Region primarily
includes properties east of the Mississippi River, including the Illinois
Basin and the state of Michigan, among other areas. Production from the
properties included in the sale agreement averaged approximately 1,100 Boepd
for the three month period ended September 30, 2012.
"We are divesting non-core, conventional assets and re-investing the proceeds
in an attractive acquisition that further builds our strategic, core position
in the Bakken," said Harold Hamm, Chairman and Chief Executive Officer.
"Continental operates a large portion of the acreage that we are acquiring,
and more than half of it is held by production."
If the Bakken acreage acquisition is completed as planned, the Company expects
additional 2013 drilling capital expenditures will be largely offset by
incremental cash flow from the properties.
Both transactions are expected to close prior to December 31, 2012 and remain
subject to customary closing conditions and adjustments.
About Continental Resources
Continental Resources is a Top 10 petroleum liquids producer in the United
States. In October 2012, the Company announced a new five-year plan to triple
production and proved reserves by year-end 2017. The Company's growth plan is
based on developing its industry-leading leasehold in the nation's premier oil
play, the Bakken of North Dakota and Montana, as well as its position in the
SCOOP and Northwest Cana plays of Oklahoma. The company reported total
revenues of $1.6 billion for 2011. Visit www.clr.com for more information.
Cautionary Statement for the Purpose of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements included in this press release other than
statements of historical fact, including, but not limited to, statements or
information concerning the Company's future operations, performance, financial
condition, production and reserves, schedules, plans, timing of development,
returns, budgets, costs, business strategy, objectives, and cash flow, are
forward-looking statements. When used in this press release, the words
"could," "may," "believe," "anticipate," "intend," "estimate," "expect,"
"project," "budget," "plan," "continue," "potential," "guidance," "strategy,"
and similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such identifying words.
Forward-looking statements are based on the Company's current expectations and
assumptions about future events and currently available information as to the
outcome and timing of future events. Although the Company believes that the
expectations reflected in the forward-looking statements are reasonable and
based on reasonable assumptions, no assurance can be given that such
expectations will be correct or achieved or that the assumptions are accurate.
When considering forward-looking statements, readers should keep in mind the
risk factors and other cautionary statements described under Part I, Item 1A.
Risk Factors included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2011, registration statements and other reports filed from
time to time with the Securities and Exchange Commission (SEC), and other
announcements the Company makes from time to time.
The Company cautions readers that these forward-looking statements are subject
to all of the risks and uncertainties, most of which are difficult to predict
and many of which are beyond the Company's control, incident to the
exploration for, and development, production, and sale of, crude oil and
natural gas. These risks include, but are not limited to, commodity price
volatility, inflation, lack of availability of drilling and production
equipment and services, environmental risks, drilling and other operating
risks, regulatory changes, the uncertainty inherent in estimating crude oil
and natural gas reserves and in projecting future rates of production, cash
flows and access to capital, the timing of development expenditures, and the
other risks described under Part I, Item 1A. Risk Factors in the Company's
Annual Report on Form 10-K for the year ended December 31, 2011, registration
statements and other reports filed from time to time with the SEC, and other
announcements the Company makes from time to time.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. Should one or more of the
risks or uncertainties described in this press release occur, or should
underlying assumptions prove incorrect, the Company's actual results and plans
could differ materially from those expressed in any forward-looking
statements. All forward-looking statements are expressly qualified in their
entirety by this cautionary statement. This cautionary statement should also
be considered in connection with any subsequent written or oral
forward-looking statements that the Company, or persons acting on its behalf,
Except as otherwise required by applicable law, the Company disclaims any duty
to update any forward-looking statements to reflect events or circumstances
after the date of this press release.
CONTACTS: Continental Resources, Inc.
Warren Henry, VP Investor Relations Kristin Miskovsky, VP Public Relations
SOURCE Continental Resources
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