Continental Resources Inc. said June 18 it expects to partially begin resuming production starting next month.
In response to low prices and storage limitations, a slew U.S. oil and gas companies began turning off the taps by temporarily shutting in wells and curtailing production. Rystad Energy estimated that gross U.S. cuts could reach at least 2 million bbl/d in June, including liquids.
However, due to a recent recovery in oil prices, crude buyers and analysts are expecting U.S. shale producers to restore roughly a quarter of shut-in production by the end of June, according to a Reuters report on June 17.
Continental Resources expects to partially begin resuming production in July but still expects to curtail approximately 50% of its operated oil production. The Oklahoma City-based company had previously said it planned to curtail 70% of operated oil production in May, with continued curtailments into June.
“As oil prices have stabilized and begun to recover, we have partially resumed production,” CEO Bill Berry said in a statement on June 18. “As improved supply and demand fundamentals benefit oil prices, we expect to continue restoring production in subsequent months.”
Continental expects production in June to average 150,000 to 160,000 boe/d, increasing in July to 225,000 to 250,000 boe/d.
Second-quarter total production is forecast to average 200,000 to 205,000 boe/d, the company said adding it expects to further revisit previously suspended guidance when announcing its results for the quarter.
Continental has significant positions in the Bakken play of North Dakota and Montana as well as the SCOOP and STACK plays of Oklahoma. The company also ranks as one of the top 10 independent oil producer in the U.S., according to its release.
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