Continental Resources (CLR), a winner of the resource-grab phase in the Williston basin, could benefit from the heavy resource potential in the basin, says Eli Kantor, Senior E&P Equity Research Analyst at IBERIA Capital Partners.
“Given the vast disparity between oil prices and gas prices, you’re going to want to own the companies that have significant unbooked resource potential in the oil-centric basins,” said Kantor.
CLR is leading the industry in delineating the lower Three Forks/Sanish formations and is also testing a pilot later this year focused on tighter well-spacing, both which have the potential to double or triple resource potential and results that could influence valuation for Williston basin producers, says Kantor.
“In the Williston basin there are two overarching catalyst trends that we think investors should be paying attention to: the delineation of the lower Three Forks/Sanish, TFS, formations, and downspacing assessments,” Kantor said. “We expect a handful of new results to be announced over the next 12 to 18 months that should provide investors with better understanding.”
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