For the fourth quarter of 2010, Bakken production climbed to 22,520 Boepd, or 47 percent of Continental's total production, compared with 36 percent of production in the fourth quarter of 2009. On a year-over-year basis, Continental's Bakken production increased 64 percent over the fourth quarter of 2009.

In the North Dakota portion of the Bakken, Continental's fourth quarter 2010 production was 17,834 Boepd, an increase of 113 percent over the total for the fourth quarter of 2009.

The Company participated in completing 77 gross (26.4 net) wells in the North Dakota Bakken in the fourth quarter of 2010, with initial production rates averaging 1,002 Boepd during single-day test periods. During 2010 as a whole, the Company completed or participated in completing 222 gross (71.1 net) wells in the North Dakota Bakken, bringing its total wells drilled in this part of the play to 475 gross (150.2 net) wells at December 31, 2010.

Continental has restricted initial production rates on a significant number of its Bakken wells to minimize natural gas flaring and in response to constraints in transportation capacity primarily related to periodic severe winter weather conditions.

Notable Company-operated wells completed in North Dakota during the fourth quarter of 2010 (with initial test period gross production results) included:

• Rolfsrud 1-11H (43% WI) in McKenzie Co. - 1,713 Boepd;
• Jerol 1-27H (28% WI) in Williams Co. - 1,663 Boepd;
• Brandvik 2-25H (45% WI) in Dunn Co. - 1,630 Boepd;
• Olson 2-8H (33% WI) in McKenzie Co. - 1,613 Boepd;
• Evenson 1-19H (69% WI) in Divide Co. - 1,426 Boepd;
• Hendrickson 2-36H (83% WI) in McKenzie Co. - 1,323 Boepd; and
• Tangsrud 2-1H (92% WI) in Divide Co. - 1,023 Boepd.

In addition, Continental completed three ECO-Pad(R) projects in North Dakota during the fourth quarter of 2010. ECO-Pad technology allows four wells (two Middle Bakken, two Three Forks) to be drilled from a single pad on two adjoining 1,280-acre spacing units. Application of ECO-Pad technology is expected to increase recoveries per well and to reduce drilling costs, completion costs and environmental impact by centralizing operations on a single pad. The three ECO-pad projects are listed below with their gross initial production results.

The Miles-Kennedy ECO-Pad wells were drilled in McKenzie County. This project involved the Miles 1-6H and 2-6H (31% WI for each) and the Kennedy 1-31H (31% WI) and 2-31H (67% WI). Initial production averaged 1,377 Boepd, with the strongest well testing at 1,448 Boepd.

The Glasoe-Raymo ECO-Pad project was drilled in Divide County. This involved the Glasoe 2-19H (46% WI) and 3-19H (50% WI) and the Raymo 1-30H (71% WI) and 2-30H (76% WI). Initial production averaged 940 Boepd per well for the four wells, with the strongest well testing at 1,129 Boepd.

The Bridger-Bonneville ECO-Pad project was drilled in Dunn County. It involved the Bridger 2-14H and 3-14H (47% WI for each) and the Bonneville 2-23H and 3-23H (47% WI for each). Initial production (restricted) averaged 745 Boepd per well for the four wells, with the strongest well testing at a restricted 883 Boepd.

In Montana, Continental announced the completion of two notable wells in Richland County in the fourth quarter of 2010. The Tolksdorf 1-1H (95% WI) and the Baxter 1-5H (33% WI) were completed in the extension area north and northeast of the Elm Coulee Field fairway, and had initial production test rates of 642 gross Boepd and 412 gross Boepd, respectively. The two wells were fracture-stimulated with 24 stages each.

"We're pleased with the outcome on these two wells. This sets up the area for continued development, expanding the field with new technology," Mr. Hamm said. At year-end 2010, Continental had 165,316 net undeveloped acres leased in the Montana Bakken.

Continental completed or participated in 11 gross (5.5 net) wells in the Montana Bakken during 2010. As of year-end 2010, the Company had completed 171 gross (108.6 net) wells in the Montana portion of the play.

"Continental completed the first commercially viable well in the North Dakota Bakken that used both horizontal drilling and fracture stimulation - the Robert Heuer 1-17R in Divide County in March 2004," Mr. Hamm said. "We were an early pioneer in the play, and since then we've established Continental as the leading leaseholder. We expect the Bakken to drive our growth for many years."

At year-end 2010, Continental had a total of 855,936 net acres leased in the Bakken play, with 623,649 net acres leased in North Dakota and 232,287 net acres in Montana. The Company has 21 operated drilling rigs in North Dakota and two in Montana.

Red River Units (Montana, North Dakota and South Dakota)

The Company's production in the Red River Units averaged 13,896 Boepd in the fourth quarter of 2010. Continental currently has two operated rigs active in the Units, completing its increased density drilling pattern in the water-flood secondary recovery project.

Link to Article