Continental's 2010 capital expenditures budget of $650 million will primarily focus on increased development in the North Dakota Bakken, the Arkoma and Anadarko Woodford shale natural gas plays in Oklahoma and the Red River Units, with total operated drilling rigs increasing to as many as 23 by mid-2010.

Operational capital expenditures - investment in drilling, work-over and related facilities - account for $563 million, or 87 percent, of the Company's 2010 capex budget. In addition, the Company plans $73 million in land capex for new leases and lease retention, primarily in the Bakken and Woodford plays.

Continental has allocated $373 million, or 66 percent, of its 2010 operational capex to accelerate development in the Bakken shale play of North Dakota and Montana. The Company expects to complete 193 gross (61.9 net) wells in North Dakota and 11 gross (4.6 net) wells in Montana in 2010. Starting with seven operated rigs on January 1, the Company plans to have up to 15 operated drilling rigs by mid-2010, with all but one in North Dakota.

In Oklahoma, Continental plans to complete 62 gross (13.2 net) wells in the Arkoma Woodford and 11 gross (5.6 net) wells in the Anadarko Woodford during 2010. A total of $84 million, or 15 percent, of its operating capex is allocated to the Woodford plays in 2010. The Company plans to have an average of three operated rigs in the Woodford plays in 2010.

In the Red River Units, Continental plans to complete pattern drilling on its water flood project in the Cedar Hills Units and to resume development activity in the Medicine Pole Hills and Buffalo units in 2010. It has allocated $66 million, or 12 percent, of its operational capex to the Units, which will support one operated rig and significant investment in facilities and infrastructure. Production in the units is expected to peak mid-year in a range of 15,000 Boepd to 15,500 Boepd and then level off through the remainder of 2010.

Tags: Continental Resources