Continental Resources Inc. (NYSE: CLR) announced Oct. 23 continued success in its recently unveiled Springer play in the South Central Oklahoma Oil Province (SCOOP).

"Four new wells further confirm the repeatability and growth potential of Continental's new discovery, the Springer play in SCOOP," said Harold G. Hamm, chairman and CEO, in a statement. "These individual delineation wells in the play are generating excellent returns, with shallow decline rates compared to other unconventional resource plays."

The four new wells had an average horizontal lateral length of about 4,475 feet. Continental expects estimated ultimate recovery (EUR) of 940,000 gross barrels of oil equivalent (boe) per well in the oil fairway of the play for a well with a 4,500-foot lateral section.

The wells were drilled to an average vertical depth of roughly 12,625 feet and average total measured depth of about 17,650 feet.

Continental, based in Oklahoma City, expects to realize even stronger well economics as development drilling gets under way utilizing extended laterals, pad drilling, and other drilling and completion efficiencies, Hamm said.

In November, Continental plans to commence drilling its first extended lateral well in the Springer play, with a planned lateral length of 7,500 feet. The company anticipates an average EUR of about 1.6 million gross boe for extended lateral wells of this length, reflecting the 67% longer lateral.

"The Springer adds another significant oil resource driver to Continental's strategic growth outlook," he said. "It's distinguishing itself as the most productive play in Oklahoma, and it's right in our back yard."

The four new wells, all located in Grady County, include:

  • Nancy J 1-28H—The well had an initial 24-hour production test rate of 1,815 boe, with 79% of the initial production being crude oil. The company has a 57% working interest in the well.
  • AC Walters 1-27H—The well had an initial 24-hour test rate of 1,630 boe, of which 78% was crude oil. The company has an 83% working interest in the well.
  • Schoof 1-17H—The well had an initial 24-hour production of 1,465 boe, of which 74% was crude oil. The company has a 99% working interest in the well.
  • Ince 1-21H—The well had an initial 24-hour production test rate of 1,037 boe, of which 86% was crude oil. The company has a 77% working interest in the well, which is about 25 miles south of the other three wells.

Continental's current Springer production is about 6,000 net (9,200 gross) boe/d, of which about 70% is crude oil. The company currently has nine operated drilling rigs active in the Springer play, with a focus on rapidly expanding its understanding of the productive extent of the play.

The company reported that the average completed well cost this year has been in line with earlier projected cost of $9.7 million per well.