Continental Resources Inc. (NYSE: CLR), continuing to eye debt reduction, trimmed more than 32,500 net acres of noncore leasehold in the Stack play and Arkoma Basin in Oklahoma, the company said in August.

Continental said earlier it signed two purchase and sale agreements with undisclosed buyers, including one deal to divest 6,590 net acres in the oil window of the Stack play in northern Blane County, Okla., for $72.5 million.

Continental also agreed to divest 26,000 net acres in Atoka, Coal, Hughes and Pittsburg counties, Okla., in the Arkoma for $68 million. Additionally, the company is selling oil-loading facilities for $7 million.

Total gross proceeds of $147.5 million will be used to reduce the company’s $6.56 billion debt.

The company’s Stack development includes 47,000 net acres. In early August, eight Meramec wells had produced a combined 2.63 million barrels of oil equivalent (boe).

Jack H. Stark, Continental’s president, said on an Aug. 9 conference call that the company is looking at a “mixed bag of opportunities” for accelerating value.

That could mean a noncore asset divestiture or “perhaps a joint venture partner, if it’s a very attractive asset we’d just like to accelerate the value for,” he said. “We’ve been blessed over time to build just an amazing portfolio of assets. We are now optimizing our inventory and just even our footprint in these plays to the company’s and the shareholders’ advantage.”

Daniel P. Katzenberg, an analyst at Baird Equity Research, was enthusiastic about Continental’s strides, particularly in its ability to drive down costs in an Aug. 30 report.

“With skepticism toward the ultimate economic profitability of shale development weighing on the shares of onshore E&Ps this year, Continental’s internally driven expansion in economic inventory and sustained cost improvements serve as a hurdle for other operators to meet,” Katzenberg said. “While we acknowledge these fundamental positives, we await a larger valuation disconnect before getting more aggressive on shares.”

The company’s most recent guidance suggests greater production with less capex.

In August, the company’s midpoint production guidance increased to 235,000 boe/d from 225,000 boe/d in January. Capex, initially at $1.95 billion, is now targeting a range of $1.75 billion to $1.95 billion.

As of June 30, the company’s debt decreased $23.9 million compared to $6.58 billion on Dec. 31. The company reported it had $17.2 million in cash and equivalents and $1.87 billion in available credit in June.

Continental’s last reported Oklahoma sale was in October, when Casillas Petroleum Resource Partner LLC purchased Scoop assets in Oklahoma for $294 million, with proceeds also earmarked for debt reduction.

Casillas acquired about 30,000 net acres (90% HBP) in Garvin, Grady and McClain counties, Okla. The assets produced 550 net boe/d.

Continental’s August Stack and Arkoma sales are expected to close in third-quarter 2017.

Darren Barbee can be reached at dbarbee@hartenergy.com.