OKLAHOMA CITY, May 18 (UPI) -- Continental Resources boasted of record performance at a shale well on Oklahoma that it said was performing near the lowest costs ever for the company.
Continental said it completed an "industry record well" in the so-called STACK shale reserve basin within the Anadarko basin in Oklahoma. Over a 24-hour test, the Verona well flowed 2,345 barrels of oil, which represented about 70 percent of the well's total production. The rest was associated gas.
"We couldn't be more pleased with the performance of our wells in STACK and the addition of this outstanding asset to our portfolio," Chairman and CEO Harold Hamm said in a statement.
The company said operations there totaled around $9 million, which was $500,000 less than target costs for similar work outlined for 2016. This, Continental said, is the lowest cost to date for operations in the STACK reserve.
Energy companies are working on efficiency measures while the oil economy rebounds. In January, Continental said its budget would be cash-flow neutral if the price for U.S. crude oil was $37 per barrel on average for the year. U.S crude oil is now trading around $48 per barrel.
The company reported a net loss of around $198 million for the period ending March 31. Hamm in early May said he expected production to recover during the second half of the year on the back of market improvements.
The Verona well is the company's ninth in the STACK area, all of which Continental said were "strong producers." Continental has 11 drilling rigs deployed in STACK.
A 2.7-magnitude earthquake was reported Tuesday in Oklahoma. A report from the U.S. Geological Survey said the disposal of oil and gas-related wastewater is the "primary reason" for the increase in seismic activity in the region.