Continental Resources (NYSE:CLR) is one of the largest operators in the Bakken shale oil field located in Canada and North Dakota. But it's the company's operations in Oklahoma that had it up 3% yesterday. After announcing that it had discovered 1.8 billion barrels of shale oil, Newfield Exploration (NYSE:NFX) spiked more than 6% -- the reason being it owns 135,000 acres adjacent to Continental's find.
Representing 3% of its total undeveloped acreage, it had already decided to pump $300 million into the development of this area in the very near future. It will be worth watching if the company increases this allotment or expedites the process after hearing about Continental's big find. As for Continental's development of the new find, its vast experience in the Bakken should prove extremely helpful, as the geology there is strikingly similar to the Bakken field.
With global demand continuing to grow, and the U.S. aiming to become more energy independent, these finds could really boost both companies' performance as soon as production comes online. Add them to your Watchlist to keep track of their progress.
Joel South, Taylor Muckerman, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.