Continental Resources Strengthens Bakken Focus With Two Transactions

     Continental Resources Strengthens Bakken Focus With Two Transactions

Company Expects Lower 2013 Production Operating Costs per Boe and Increased

PR Newswire

OKLAHOMA CITY, Dec. 20, 2012

OKLAHOMA CITY, Dec. 20, 2012 /PRNewswire/ -- Continental Resources, Inc.
(NYSE: CLR) has completed the acquisition of 119,218 net acres in the Bakken
field, primarily in Williams and Divide counties, North Dakota, from Samson
Resources Company for $649.3 million in cash, subject to post-close
adjustments. The acquisition includes production of approximately 6,500
barrels of oil equivalent per day (Boepd), of which 82 percent is crude oil.


In addition, Continental completed the sale of properties and approximately
1,100 Boepd of production in its Eastern Region for $125 million in cash,
subject to post-close adjustments.

Combined, the transactions are expected to reduce 2013 production operating
costs per barrel of oil equivalent (Boe), compared with previous guidance, and
increase production growth to a range of 35-to-40 percent. The Bakken
transaction increases Continental's leasehold to 1.1 million net acres,
further strengthening its position as the No. 1 acreage holder and producer in
what the Company believes will prove to be the largest oil field in the

"We bought the Bakken acreage to develop it and expand it," said Harold Hamm,
Chairman and Chief Executive Officer. "This is consistent with our continued
concentration of investment in high rate-of-return projects. Together the
transactions add 20 net Bakken wells to our 2013 drilling program, in addition
to other well completion activities, and eliminate 11 Eastern Region wells."

The acquisition includes 45,167 net acres (77 percent held by production)
located along the Nesson Anticline in a jointly developed area of mutual
interest (AMI) between Continental, as operator, and Samson. As a result of
the acquisition, Continental's average working interest in the AMI acreage
increased to 71 percent, compared with the previous working interest of 46

The balance of the acquired net acreage (74,051 net acres) is primarily
located immediately west of the AMI acreage and is 40 percent held by
production. Subsequent to the acquisition, Continental has an average working
interest of 34 percent in the non-AMI area, but it will operate a majority of
this acreage, due to the distribution of its ownership. 

The Company noted that the acquisition has two strategic elements.

In the AMI acreage, Continental is focused on accelerated development:

  oThe Company is increasing its ownership, adding another 25 percent working
    interest, in existing and future operated wells;
  oThe Company is leveraging its scale and efficiency of operations to drive
    costs down, especially as it transitions to more ECO-Pad^® drilling in the
    northern part of the Bakken field.

In the non-AMI acreage, Continental's strategic focus is expansion through
exploration and new technology. The Company is already in the process of
expanding and de-risking the non-AMI area, where it previously had ownership:

  oRecent results include the Selmer 1-35H (75% WI) and Sverdrup 1-36H (48%
    WI), which had initial 24-hour production test rates of 912 Boepd and
    1,313 Boepd, respectively.
  oTwo Continental-operated rigs are currently drilling in the non-AMI area,
    continuing the Company's expansion/de-risking program.

Finally, Continental believes the entire acquisition area of 119,218 net acres
has potential for deeper Three Forks development, based on three strategically
placed cores taken in 2011.

"This is a classic bolt-on acquisition, from a number of perspectives –
strategic, tactical and financial," said Rick Bott, President and Chief
Operating Officer. "It fits nicely into our deeper bench Three Forks
de-risking plan, and we expect it to add immediate value. Within the next 30
days we plan to spud the first of 10 wells in the northern region, targeting
the deeper benches to confirm commercial production and appraise our
down-spacing concept, so we can quickly leverage operational efficiencies with
pad drilling."

Revised 2013 Guidance
The net effect of the two transactions is expected to increase Continental's
production growth in 2013, while reducing production expense per Boe and
general and administrative expense per Boe. Regarding the acquisition, the
Company expects cash flow from increased production will largely offset
additional 2013 capital expenditures, related to increased ownership and new
drilling activity. (The remainder of the Company's 2013 guidance, as disclosed
in its November 7, 2012 third quarter earnings press release, remains

                            2013 Guidance
                            Old                 New
Production growth range      30% to 35%         35% to 40%
Capital expenditures*        $3.4B               $3.6B
Net well completions         300                 309
Operating expenses:
Production expenses per Boe  $5.50 to $5.90      $5.20 to $5.60
G&A expense per Boe**        $2.40 to $2.90     $2.20 to $2.70

* Excludes acquisition capital expenditures
** Excludes non-cash equity compensation of $0.70 to $0.90 per Boe

"The net effect of the two transactions should enhance our cash margins," said
John Hart, Senior Vice President and Chief Financial Officer. "We're funding
the acquisition at attractive rates from our existing revolver and continue to
maintain strong liquidity for funding operations."

Continental recently increased the borrowing base for its revolving credit
facility to $3.25 billion, from the previous base amount of $2.75 billion. The
Company currently has commitments of $1.5 billion under the revolver.

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 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,
may make.

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.
Investors                           Media
Warren Henry, VP Investor Relations Kristin Miskovsky, VP Public Relations
405-234-9127                        405-234-9480     

SOURCE Continental Resources

Press spacebar to pause and continue. Press esc to stop.