ENERGY SPECTRUM ADVISORS INC.

Transcription

1 ENERGY SPECTRUM ADVISORS INC. Executive Summary (NYSE: CLR) Bakken / Three Forks Non Operated Assets September 2011 EN ERGY SPECT RU M ADVISO RS IN C.

2 Executive Summary The Transaction (the Company, Continental, or CLR ) is offering for sale certain non-operated oil and gas mineral leases located in various counties of North Dakota and Montana (the Properties ). Continental has engaged Energy Spectrum Advisors Inc. ( ESA ) as its exclusive financial advisor in connection with the sale of the Properties. The Company prefers a sale of all of the Properties to one party for cash. The divestiture of these Properties is a strategic decision based solely on the assessment of corporate efficiencies. Asset Sale Highlights Non-operated acreage position consisting of 44,546 gross / 4,323 net acres (6.2% HBP). The majority (83%) of the leasehold expires in 2013 or later. Weighted Average WI of 9.70% with a Weighted Average NRI of 81.6% to the 8/8ths. 106 drilling spacing units (1280 acres per unit) currently exist on the Properties and have been approved by the North Dakota Industrial Commission ( NDIC ) and Montana Board of Oil and Gas Conservation Commission ( MBOGCC ). 76 additional unspaced units exist on the Properties. In North Dakota and Montana, non-operated working interest parties can propose, permit and drill wells (in the case where an operator obtains a permit but fails to drill the well in a timely manner, or in the case where an operator fails to obtain a permit in a timely manner). Within the area of the active play, Bakken and Three Forks completions each have a typical EUR averaging 600 MBOE per well. One or both completion zones may be considered prospective over the play area. When both zones are present, they are considered separate reservoirs for development purposes and full development may likely require 4 wellbores per zone for each 1280 acre spacing unit. Likely operators include: ConocoPhillips (Burlington Resources), Brigham Exploration, XTO, Marathon, SM Energy, Ursa Resources, EOG, Oasis Petroleum, OXY (Anschutz), Hess, Whiting, Denbury, Slawson, and several others. Numerous offset wells exceed 2,000 BOEPD initial production rates with some up to 4,000 BOEPD (particularly in newer vintage wells with long laterals extending across 2 sections). Continental has approved and elected to participate in 4 wells on the Properties. An additional 8 wells have been permitted on the Properties. Typical AFE 8/8ths gross D&C costs is $8.5 MM to 9.0 MM. A single test well on all acreage would require participation in a total of 3.38 net wells with an estimated total net cost of $29.5 MM. Total net reserve potential for all of the first test wells drilled on all the acreage is estimated to be 1.65 MMBOE. Total net reserves for full resource development is estimated at 13.2 MMBOE. Unique opportunity to acquire a non-operated position in a highly active and successful oil play. Continental estimates that the play covers 14,700 sq. mi. and has potentially recoverable reserves of 24 Billion BOE. Sale acreage is located within the USGS Williston Basin designated area of hydrocarbon generation where approximately 170 rigs are actively drilling. At the current rig count, it is estimated that over 1,350 wells will be drilled in the Williston Basin in 2011.

3 Location Map Total Sale Acreage Activity Map (in sale) Continental Resources, Inc.

4 Williston Basin 24 billion BOE technically recoverable (Continental estimate) 14,700 square-mile continuous oil accumulation ~4,000 horizontal completions 200 Miles MIGRATED CONVENTIONAL OIL FIELDS Industry adding ~2,100 wells per year (~170 active rigs) Majority of leasehold for sale located within the thermal kitchen. 320-acre spacing and 600 MBOE per well Dual zone development in Middle Bakken and Three Forks MB zone 97% risk factor TF zone 67% risk factor 250 Miles Fault Zone MARGINALLY MATURE BAKKEN Oil migration Three Forks CLR acreage Bakken MATURE BAKKEN KITCHEN Note: Acreage for sale in this transaction is a subcomponent of that showninthemapabove.

5 Sale Process Timeline Next Step: If you would like to review the Confidentiality Agreement, receive the Sales Memorandum and access the Virtual Data Room, please do one of the following: (1) Visit our website at and click the Access Confidentiality Agreement and Virtual Data Room link, or (2) If you received an regarding this deal, click the Access Confidentiality Agreement and Virtual Data Room link For any questions regarding the CA or Virtual Data Room, please contact Kevin Kuenn at or Lindsay Sherrer at Sale Materials Available September 8 September 8 October 4 Final Offers Due October 6 (noon Central) Projected PSA Execution October 17 Projected Closing November 10 Effective Date of Sale October 1 September 2011 October 2011 Monday Tuesday Wednesday Thursday Friday Sat Sun Monday Tuesday Wednesday Thursday Friday Sat Sun Effective Date Labor Day Final Offers Due Sign PSA November 2011 Monday Tuesday Wednesday Thursday Friday Sat Sun Projected Close

6 Contact Information Please direct all inquiries to the Energy Spectrum team for this transaction: Coy Gallatin Senior Vice President (713) Kevin Kuenn Vice President (214) Damian Wells, P.E. Senior Vice President (214) Lindsay Sherrer Vice President (214) EN ERGY SPECT RU M ADVISO RS IN C Sherry Lane, Suite Dallas, TX (214) Fax: (214)