CLR

Continental Resources, Inc.

We are an independent crude oil and natural gas exploration and production company with operations in the North, South and East regions of the United States. We were originally formed in 1967 to explore, develop and produce crude oil and natural gas properties. Through 1993, our activities and growth remained focused primarily in Oklahoma. In 1993, we expanded our activity into the North region. Approximately 76% of our estimated proved reserves as of December 31, 2009 are located in the North region. We completed an initial public offering of our common stock on May 14, 2007, and our common stock began trading on the New York Stock Exchange on May 15, 2007 under the ticker symbol “CLR”.

We focus our exploration activities in large new or developing plays that provide us the opportunity to acquire undeveloped acreage positions for future drilling operations. We have been successful in targeting large repeatable resource plays where horizontal drilling, advanced fracture stimulation and enhanced recovery technologies provide the means to economically develop and produce crude oil and natural gas reserves from unconventional formations. As a result of these efforts, we have grown substantially through the drill bit, adding 224.2 MMBoe of proved crude oil and natural gas reserves through extensions and discoveries from January 1, 2005 through December 31, 2009 compared to 2.8 MMBoe added through proved reserve purchases during that same period.

As of December 31, 2009, our estimated proved reserves were 257.3 MMBoe, with estimated proved developed reserves of 113.6 MMBoe, or 44% of our total estimated proved reserves. Crude oil comprised 67% of our total estimated proved reserves. For the year ended December 31, 2009, we generated revenues of $626.2 million and operating cash flows of $375.9 million. For the year and quarter ended December 31, 2009, daily production averaged 37,324 and 37,747 Boe per day, respectively. This represents growth of 14% and 5% as compared to the year and quarter ended December 31, 2008, when daily production averaged 32,803 Boe and 36,018 Boe, respectively.

Crude Oil and Natural Gas Operations

In December 2008, the SEC adopted new rules related to modernizing reserve calculation and disclosure requirements for oil and natural gas companies that became effective prospectively for annual reporting periods ending on or after December 31, 2009. The new rules expand the definition of oil and gas producing activities to include the extraction of saleable hydrocarbons from oil sands, shale, coal beds or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas, and activities undertaken with a view to such extraction. The use of new technologies is now permitted in the determination of proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserve volumes. Other definitions and terms were revised, including the definition of proved reserves, which was revised to indicate that entities must use the unweighted average of first-day-of-the-month commodity prices over the preceding 12-month period, rather than the year-end price, when estimating whether reserve quantities are economical to produce. Likewise, the 12-month average price is now used to calculate reserves used in computing depreciation, depletion and amortization. Another significant provision of the new rules is a general requirement that, subject to limited exceptions, proved undeveloped reserves may only be booked if they relate to wells scheduled to be drilled within five years of the date of booking.

The initial application of new rules related to modernizing reserve calculation and disclosure requirements resulted in a upward adjustment to our total proved reserves as of December 31, 2009 primarily as a result of the amendments to the definition of oil and gas reserves and higher oil prices.