Continental Resources, Inc. Q1 2009 Earnings Call Transcript

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2009-05-08 06:50:36.0

Tags: Well, Call Transcript, Earnings, Continental Resources Inc., Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions) And your first question comes from the line of John Freeman from Raymond James. Please proceed.

John Freeman – Raymond James

Good morning, guys.

Harold Hamm

Good morning, John.

John Freeman – Raymond James

First question I had, on the two exploratory wells that were uneconomic during the quarter, were those Anadarko Woodford and Atoka, or is that somewhere else?

Harold Hamm

They were the Anadarko Atoka wells, and those include the Shrooder [ph] and the Jones Trust, which were noted in the 10-K. And so these were wells that the completion information is provided in the 10-K, but essentially the wells completed at rates that we considered uneconomic in today’s prices and therefore had to be impaired.

John Freeman – Raymond James

Okay. And any idea at this point on how much of the acreage in the Anadarko Woodford do you think is probably impaired with this, or is it just too early to tell?

Harold Hamm

You just said Anadarko Woodford and this was Anadarko Atoka. We’ve got about 20,000 net acres in the Atoka play itself out there. And at this point, we would like to see better results, but we know from the results that we are seeing from other operators out there that commercial production is being established. So the impairment of that acreage is something we are debating.

John Freeman – Raymond James

Okay. Sorry, I apologize. It is not the Anadarko Woodford, it’s the Atoka.

Harold Hamm

Yes.

John Freeman – Raymond James

Okay, thanks. And then on the companion well, any sense of like how long do you think you are going to have to let that well produce till you have a better idea or a clear view if it is a separate reservoir?

Jeff Hume

Yes, John, what we are doing on that, we will be landing the 7-H this weekend or early next week. The number one well will be pulling to tubing out and sealing off of the bottom of the well bore and putting bottom hole pressure gauges in that. So we will be watching the pressure as we drill the lateral to see if there is any open fractures into the well bore as we drill it. Following that, we will – after we finish drilling that well, it will be a roughly 10 to 12-day period before we frac the well. We will leave those pressure bombs in there for the frac stage.

 

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