Continental canceled permit to drill. Is this because oil can’t sell now. Will they drill in 2021? Anyway of knowing? Thank you
Every oil company is rapidly changing their capital spend plans with the new price environment, but even in a normal environment companies typically work up plans (permits, location staking, well planning, etc) for more wells than they drill just to maintain a backup selection in case one on the rig schedule falls through. Doesn’t mean they’ll never drill it, just that immediate priorities changed and they might slide it in later.
Continental was still actively drilling in the basin last I checked but rig activity was down to only 5-6 rigs TOTAL (all companies) in the state. An easy (though often vague) place to see clues of their current strategy and drill plans is to look at their investor section of their website for presentations and press releases.
Continental just reported that they are beginning to ramp up production in July. Patience is the name of the game for now. The price of oil and gas is tied to a company’s strategy.
Thank you for your comments!
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