Northern Oil & Gas Inc.
10/12/2010 | Press release | Archived content
Northern Oil and Gas, Inc. Increases 2010 Drilling Guidance and Provides Operations Update
WAYZATA, Minn., Oct. 12/PRNewswire-FirstCall/ -- Northern Oil and Gas, Inc. (NYSE/Amex: NOG) ("Northern Oil") today announced increased 2010 drilling guidance and provided an operations update related to drilling and completion activity in the WillistonBasin Bakken and Three Forksplay.
2010 DRILLING ACTIVITY
Since January 1, 2010, Northern Oil has spud 21.5 net wells. Northern Oil is currently participating in the drilling or completion of 90 gross Bakken or Three Forkswells, for an aggregate of 10.4 net wells currently drilling, awaiting completion or completing. Of those wells, 5.0 net wells are currently drilling but have not reached total depth, an additional 4.6 net wells have been drilled to total depth and are awaiting completion and the remaining 0.8 net wells are currently undergoing fracture stimulation to commence production.
Northern Oil now expects to spud approximately 24 net wells by the end of 2010, increased from previous guidance of 18 net wells. We believe the increase in expected wells is based upon the increasing rig count, which was at an all-time high of 155 drillings rigs in the North Dakota Bakken play as of October 11, 2010. Northern Oil's Chief Executive Officer, Michael Reger, commented "We continue to experience an increased pace of drilling in the Bakken and Three Forksplays. In addition to allowing Northern Oil to consistently increase its production, increasing drilling activities have also allowed us to observe the impactful delineation of the Three Forksplay in key counties of the WillistonBasin."
2010 ACREAGE ACQUISITIONS
Northern Oil has acquired a total of 38,864 net acres year-to-date in the core of the WillistonBasin Bakken and Three Forksplay at a total cost of approximately $42.2 million. This represents an average cost of $1,086per acre.
RECENT COMPLETION HIGHLIGHTS
The following table illustrates the most recent well completions in which Northern Oil participated.
DAYS
USED TO
COMPUTE
AVG. AVG.
WELL NAME OPERATOR COUNTY/STATE WI IP/BOEPD* BOEPD BOEPD**
RS-NELSON FARMS
#2829H-1 HESS MOUNTRAIL, ND 49.50% 752 30 334
JERICHO #2-5H SLAWSON MOUNTRAIL, ND 42.36% 386 69 177
JANET #1-8H CONTINENTAL WILLIAMS, ND 37.88% 640 N/A N/A
JOANNE #1-7H CONTINENTAL DIVIDE, ND 37.58% 452 N/A N/A
ALAMO #1-19-18H SLAWSON MOUNTRAIL, ND 29.98% 1,625 N/A N/A
BADGER #1-9H SLAWSON MOUNTRAIL, ND 28.38% 2,057 30 799
DIAMONDBACK
#1-21H SLAWSON MOUNTRAIL, ND 25.23% 2,013 30 494
STALLION
#1-1-12H SLAWSON MOUNTRAIL, ND 23.00% 2,753 200 720
KLEPP 21X-01 XTO ENERGY WILLIAMS, ND 22.81% 717 N/A N/A
SHONNA #2-15H CONTINENTAL DIVIDE, ND 21.80% 402 N/A N/A
RS-JOHNSON
#2128H-1 HESS MOUNTRAIL, ND 21.72% 371 72 198
SNIPER FEDERAL
#1-6-7H SLAWSON MOUNTRAIL, ND 21.41% 3,784 120 1,000
EDWARDS #5992
44-10 OASIS BURKE, ND 21.00% 612 182 273
STATE 36-1 #2H
TFS BRIGHAM WILLIAMS, ND 20.36% 2,356 N/A N/A
WHIRLWIND #1-31H SLAWSON MOUNTRAIL, ND 19.74% 1,674 63 721
AMANDA #21-14H CONOCO PHILLIPS MCKENZIE, ND 18.75% 1,833 N/A N/A
MACHETE #1-19H SLAWSON MOUNTRAIL, ND 17.18% 1,303 179 490
MELGAARD #1-14H CONTINENTAL DIVIDE, ND 15.82% 1,012 84 481
BERRY #5403
11-6H OASIS MOUNTRAIL, ND 14.38% 1,789 30 838
BARENTHSEN #6059
44-5H OASIS BURKE, ND 14.30% 495 103 252
NEPTUNE #1-15H SLAWSON MOUNTRAIL, ND 13.37% 2,578 30 749
CLEARWATER
#7-04H EOG RESOURCES MOUNTRAIL, ND 13.30% 667 N/A N/A
EN-SKABO TRUST
#0631H-1 HESS MOUNTRAIL, ND 13.16% 995 65 347
LIBERTY #09-23H EOG RESOURCES MOUNTRAIL, ND 13.13% 1,217 N/A N/A
VANVILLE #6-25H EOG RESOURCES MOUNTRAIL, ND 12.50% N/A N/A N/A
HM HOVE 34X-33 XTO ENERGY WILLIAMS, ND 12.50% 1,104 140 276
LIBERTY #6-25H EOG RESOURCES MOUNTRAIL, ND 11.88% 1,472 N/A N/A
ALLIE 31X-24 XTO ENERGY WILLIAMS, ND 11.72% 652 104 247
REDMOND #1-6H EOG RESOURCES MOUNTRAIL, ND 11.25% 390 N/A N/A
LIBERTY
#103-13TFS EOG RESOURCES MOUNTRAIL, ND 10.86% 648 N/A N/A
LIBERTY #4-13H EOG RESOURCES MOUNTRAIL, ND 10.86% 978 N/A N/A
FERTILE #34-31H EOG RESOURCES MOUNTRAIL, ND 10.39% 1,406 N/A N/A
SIDONIA #7-25H EOG RESOURCES MOUNTRAIL, ND 10.00% 462 N/A N/A
VAN HOOK
#100-15TFS EOG RESOURCES MOUNTRAIL, ND 10.00% 1,585 271 818
GILLUND #1-32H CONTINENTAL DIVIDE, ND 9.62% 623 56 388
OSPREY FEDERAL
#1-25-30H SLAWSON MOUNTRAIL, ND 9.49% 921 N/A N/A
UXBRIDGE #1-9H CONTINENTAL DIVIDE, ND 9.04% 795 N/A N/A
LIBERTY
#101-12TFS EOG RESOURCES MOUNTRAIL, ND 8.98% 612 N/A N/A
LIBERTY #23-12H EOG RESOURCES MOUNTRAIL, ND 8.98% 1,175 N/A N/A
BABETTE 24X-33 XTO ENERGY WILLIAMS, ND 7.67% 368 N/A N/A
LIBERTY #5-24H EOG RESOURCES MOUNTRAIL, ND 7.42% 877 N/A N/A
EN-HEINLE
#2536H-1 HESS MOUNTRAIL, ND 7.29% 1,104 28 662
KERBAUGH 31X-04 XTO ENERGY WILLIAMS, ND 6.51% 711 123 254
HYNEK #5693
42-35H OASIS MOUNTRAIL, ND 6.39% 1,258 94 385
LIFFRIG 29-20
#1H BRIGHAM MOUNTRAIL, ND 6.25% 2,477 195 469
BROCKMEIER #1-1 CONTINENTAL MCKENZIE, ND 6.02% 1,217 73 350
SCHILKE #8-24H PEAK MCKENZIE, ND 5.24% 1,478 43 883
SUMMERFIELD
#15-15H AMERICAN DUNN, ND 5.10% 2,799 106 646
SIDONIA #8-26H EOG RESOURCES MOUNTRAIL, ND 5.00% 735 N/A N/A
VOYAGER #2-28H SLAWSON MOUNTRAIL, ND 4.96% 1,676 60 592
ERNST #42-31H OASIS BURKE, ND 4.58% 607 30 399
SIDONIA #29-34H EOG RESOURCES MOUNTRAIL, ND 4.22% 396 N/A N/A
KUBIK TRUST
#1-18-19H ANSCHUTZ DUNN, ND 3.20% 2,441 133 566
JACK CVANCARA
19-18 #1H BRIGHAM MOUNTRAIL, ND 3.16% 5,035 120 967
ABELMANN STATE
21-16 #1H BRIGHAM MCKENZIE, ND 2.73% 3,301 135 535
SIDONIA #33-33H EOG RESOURCES MOUNTRAIL, ND 2.71% 792 N/A N/A
GLADYS #2-9H NEWFIELD MCKENZIE, ND 2.60% 3,540 102 815
ROHDE #43-1H WHITING MOUNTRAIL, ND 2.57% 4,268 135 781
SIDONIA #34-31H EOG RESOURCES MOUNTRAIL, ND 2.16% 594 N/A N/A
SIDONIA #13-08H EOG RESOURCES MOUNTRAIL, ND 2.03% 561 N/A N/A
SIDONIA
#10-2128H EOG RESOURCES MOUNTRAIL, ND 1.79% 885 N/A N/A
* Initial Production Rate (the "IP" rate) is the 24-hour "Peak Production Rate." Peak Production Rates may be established following the initial day of production, depending to operator design or well flowback profiles. The IP rate may be estimated based on other third party estimates or limited data available at this time.
** Average barrels of oil equivalents per day ("Avg. BOEPD") exclude any days a well was down for work/maintenance.
All information in the foregoing table was obtained through operator drilling reports, operator daily production reports and certain publicly available through North Dakota Industrial Commission - Oil & Gas Division reports.
CURRENTLY DRILLING OR COMPLETING WELLS
The following table illustrates wells in which Northern Oil is currently participating.
WELL NAME OPERATOR COUNTY/STATE WI STATUS FORMATION
MOUNTRAIL,
VAGABOND #1-27H SLAWSON ND 60.92% Drilling BAKKEN
JEANIE 25-36 #2H URSA MCKENZIE, ND 54.58% Drilling BAKKEN
Awaiting
BIGHORN #1-6H SINCLAIR DUNN, ND 48.79% Completion BAKKEN
MOUNTRAIL, Awaiting
GOBLIN #1-26H SLAWSON ND 45.54% Completion BAKKEN
MOUNTRAIL, Awaiting THREE
WATER MOCCASIN #1-34H SLAWSON ND 44.14% Completion FORKS
GUNNISON #44-25H PRIMA BURKE, ND 39.35% Drilling BAKKEN
Awaiting THREE
TANBERG #1-4H CONTINENTAL DIVIDE, ND 36.86% Completion FORKS
MOUNTRAIL,
SILENCER #1-29H SLAWSON ND 32.06% Drilling BAKKEN
DUAL
AV-SCHWARTZ-163-93-1102H-1 HESS BURKE, ND 30.61% Drilling LATERAL
CROSBY CREEK #1-5H SINCLAIR DUNN, ND 29.63% Drilling BAKKEN
PORCUPINE #1-19H SINCLAIR DUNN, ND 29.02% Drilling BAKKEN
CYCLONE #1-21-16H SLAWSON MCKENZIE, ND 25.00% Drilling BAKKEN
Awaiting
STAMPEDE #1-36-25H SLAWSON WILLIAMS, ND 25.00% Completion BAKKEN
MOUNTRAIL,
REVOLVER #1-35H SLAWSON ND 24.58% Drilling BAKKEN
EOG MOUNTRAIL,
FERTILE #29-27H RESOURCES ND 23.75% Completing BAKKEN
EOG MOUNTRAIL,
LOSTWOOD #13-25H RESOURCES ND 22.86% Drilling BAKKEN
ROOSEVELT, Awaiting
RENEGADE #1-10H SLAWSON MT 22.07% Completion BAKKEN
RASCAL #1-18H SLAWSON RICHLAND, MT 20.00% Drilling BAKKEN
THREE
SUNDHAGEN 21X-3 XTO ENERGY WILLIAMS, ND 17.77% Completing FORKS
Awaiting
SCOUNDREL #1-8H SLAWSON RICHLAND, MT 16.81% Completion BAKKEN
EOG MOUNTRAIL,
SIDONIA #23-2017H RESOURCES ND 15.63% Drilling BAKKEN
Awaiting
TOLKSDORF 24X-27 XTO ENERGY RICHLAND, MT 15.63% Completion BAKKEN
Awaiting
DARCY DIRKACH #14-12H MARATHON DUNN, ND 14.79% Completion BAKKEN
MOUNTRAIL,
ARMADA FEDERAL #1-14-13H SLAWSON ND 14.20% Completing BAKKEN
EOG MOUNTRAIL, Awaiting
LIBERTY #3-14H RESOURCES ND 13.75% Completion BAKKEN
THREE
HOLTE 21X-4 XTO ENERGY WILLIAMS, ND 13.63% Drilling FORKS
MOUNTRAIL,
BANKS #5892 44-34H OASIS ND 13.13% Completing BAKKEN
MOUNTRAIL, Awaiting
MUSKRAT FEDERAL #1-28-33H SLAWSON ND 12.83% Completion BAKKEN
MOUNTRAIL,
HOIBY #158-94-4B-3-1H PETRO HUNT ND 12.81% Completing BAKKEN
Awaiting
GUSTAFSON #29-32-161-92H SAMSON BURKE, ND 12.50% Completion BAKKEN
Awaiting
ZI PAYETTE #10-15H ZENERGY MCKENZIE, ND 12.50% Completion BAKKEN
EOG MOUNTRAIL,
FERTILE #28-26H RESOURCES ND 11.88% Completing BAKKEN
MOUNTRAIL, Awaiting
HUNTER #1-8-17H SLAWSON ND 11.74% Completion BAKKEN
SUBMARINER FEDERAL MOUNTRAIL, Awaiting
#1-23-24H SLAWSON ND 10.89% Completion BAKKEN
MOUNTRAIL, DUAL
EN-WEFALD #1324H-1 HESS ND 9.38% Drilling LATERAL
Awaiting
FRANCHUK #44-20SWH ENCORE DUNN, ND 9.38% Completion BAKKEN
MOUNTRAIL,
EVANS #5693 42-27H OASIS ND 9.38% Drilling BAKKEN
MOUNTRAIL, Awaiting
MCGAHAN #1-18-7H HUNT ND 8.56% Completion BAKKEN
MOUNTRAIL, Awaiting DUAL
EN-HEINLE-#2536H-2 HESS ND 7.29% Completion LATERAL
MOUNTRAIL, DUAL
EN-HEINLE-#2536H-3 HESS ND 7.29% Drilling LATERAL
LIPPERT 1-12-#1H BRIGHAM WILLIAMS, ND 6.87% N/A BAKKEN
MOUNTRAIL, Awaiting
VIXEN FEDERAL #1-19-30H SLAWSON ND 6.70% Completion BAKKEN
THREE
HELEN 11X-05 XTO ENERGY WILLIAMS, ND 6.64% Drilling FORKS
Awaiting
KJORSTAD #5300 24-22H OASIS WILLIAMS, ND 6.46% Completion BAKKEN
THREE
NORWAY #1-5H CONTINENTAL MCKENZIE, ND 5.93% Drilling FORKS
RELLA #18-19H ZENERGY WILLIAMS, ND 5.70% Drilling BAKKEN
EOG MOUNTRAIL,
SIDONIA #17-1324H RESOURCES ND 5.55% Completing BAKKEN
THREE
MANN #21-18TFH WHTING STARK, ND 5.01% Drilling FORKS
EOG Awaiting
ROUND PRAIRIE #2-20H RESOURCES WILLIAMS, ND 5.00% Completion BAKKEN
Awaiting
STENEHJEM #27-34-1H ABRAXAS WILLIAMS, ND 4.87% Completion BAKKEN
Awaiting
RAVIN #36-35-1H ABRAXAS WILLIAMS, ND 4.64% Completion BAKKEN
MOUNTRAIL,
PALERMO #1-24-25H HUNT ND 4.25% Drilling BAKKEN
MOUNTRAIL, Awaiting
JAGUAR #1-32H SLAWSON ND 4.22% Completion BAKKEN
MILLER #44-11H WHTING WILLIAMS, ND 4.12% Drilling BAKKEN
KOALA #9-5-6-5H KODIAK MCKENZIE, ND 3.93% Drilling BAKKEN
THREE
BUD #1-19H CONTINENTAL WILLIAMS, ND 3.70% Drilling FORKS
THREE
KOSTELECKY #31-6H FIDELITY STARK, ND 3.60% Drilling FORKS
MOUNTRAIL, DUAL
RS-SHUHART#2726H-2 HESS ND 3.52% Drilling LATERAL
EOG MOUNTRAIL,
CROWFOOT #2-20H RESOURCES ND 3.13% Completing BAKKEN
Awaiting
MEADOWLARK #2-6H CONTINENTAL DUNN, ND 3.12% Completion BAKKEN
THREE
MEADOWLARK #3-6H CONTINENTAL DUNN, ND 3.12% Drilling FORKS
Awaiting THREE
SKACHENKO #2-31H CONTINENTAL DUNN, ND 3.12% Completion FORKS
SKACHENKO #3-31H CONTINENTAL DUNN, ND 3.12% Drilling BAKKEN
EOG MOUNTRAIL, THREE
CLEARWATER #102-0506H RESOURCES ND 2.95% Drilling FORKS
EOG MOUNTRAIL, THREE
CLEARWATER #8-0506H RESOURCES ND 2.95% Drilling FORKS
MOUNTRAIL, Awaiting DUAL
EN-ABRAHAMSON #3019H-2 HESS ND 2.92% Completion LATERAL
MOUNTRAIL, DUAL
EN-ABRAHAMSON #3019H-3 HESS ND 2.92% Drilling LATERAL
THREE
CARTER 14X-12 XTO ENERGY WILLIAMS, ND 2.68% Completing FORKS
EOG MOUNTRAIL,
WAYZETTA #142-3019H RESOURCES ND 2.47% Drilling BAKKEN
MOUNTRAIL,
CVANCARA #11-14H WHTING ND 2.44% Drilling BAKKEN
HODENFIELD #15-23H AMERICAN WILLIAMS, ND 2.38% Drilling BAKKEN
MOUNTRAIL, DUAL
EN-WILL TRUST #2734H-3 HESS ND 2.34% Drilling LATERAL
MOUNTRAIL, DUAL
EN-TRINITY #2833H-1 HESS ND 2.28% Drilling LATERAL
MOUNTRAIL, Awaiting
PHOENIX #1-9H SLAWSON ND 2.28% Completion BAKKEN
MOUNTRAIL, Awaiting THREE
MCD #11-29H FIDELITY ND 2.08% Completion FORKS
MOUNTRAIL, Awaiting
DOMASKIN #19-30-29H FIDELITY ND 1.94% Completion BAKKEN
MOUNTRAIL, Awaiting
LYNN #19-20-29H FIDELITY ND 1.94% Completion BAKKEN
EOG MOUNTRAIL, THREE
WAYZETTA #134-17H RESOURCES ND 1.80% Drilling FORKS
MOUNTRAIL, THREE
JORGENSON #158-94-11D-2-1H PETRO HUNT ND 1.49% Drilling FORKS
MOUNTRAIL, Awaiting
PALERMO #1-5-34H HUNT ND 1.47% Completion BAKKEN
THREE
ROBERT HEUER #2-20H CONTINENTAL DIVIDE, ND 1.38% Drilling FORKS
ETHAN HALL 6B-31-30-1H ENERPLUS DUNN, ND 1.35% Drilling BAKKEN
Awaiting
HARLEY #31-2H BURLINGTON MCKENZIE, ND 1.29% Completion BAKKEN
MOUNTRAIL,
DAKOTA-3 MASON #2-11H ZENERGY ND 0.98% Completing BAKKEN
STEPANEK #8-5H ZENERGY MCKENZIE, ND 0.81% Completing BAKKEN
THREE
FARVER #1-29H CONTINENTAL DIVIDE, ND 0.78% Drilling FORKS
MOUNTRAIL,
SATTERTHWAITE #43-1H WHTING ND 0.70% Drilling BAKKEN
MOUNTRAIL, DUAL
EN-FRANDSON #2116H-1 HESS ND 0.61% Drilling LATERAL
MOUNTRAIL, Awaiting
MARTENS #1-5H SINCLAIR ND 0.56% Completion BAKKEN
FORT BERTHHOLD Awaiting THREE
#152-94-13B-24-1H PETRO HUNT MCKENZIE, ND 0.52% Completion FORKS
UPDATED HEDGING ACTIVITY
The following table reflects the weighted average price of Northern Oil's open commodity derivative contracts as of September 30, 2010, by year with associated volumes.
Weighted Average Price
Of Open Commodity Contracts
Volumes Weighted
Year (Barrels) Average Price
2010 288,000 $ 80.41
2011 720,000 $ 80.89
2012 339,000 $ 80.62
Northern Oil currently has hedged 1,347,000 barrels for delivery through June 2012at a blended average of approximately $80.72per barrel.
MANAGEMENT COMMENT
Northern Oil's Chief Executive Officer, Michael Reger, commented "The scale and scope of the Bakken and Three Forksplay continues to exceed our expectations. Our premier acreage position is turning to high-quality oil production more quickly than we have anticipated as the pace of drilling continues to accelerate. With the North Dakotarig count currently at an all-time high of 155 rigs, we expect the development of this exceptional oil resource play to continue at a robust pace. We are especially fortunate to be participating as a non-operating partner in the wells of many of the premier operators in this play. It has been exciting for us to watch the best practices evolve and improve as the innovations of our operators continue to increase efficiency and productivity. Based on excellent recent results in the Three Forks, we expect this play to continue to gain momentum as this additional producing horizon de-risks across the WillistonBasin. Most importantly, we continue to strategically acquire non-operated acreage interests at what we believe are very compelling price levels. We intend to continue to exploit our ability to acquire acreage in this growing play as long as the opportunity exists. Our single focus continues to be growing our presence and production as a non-operating partner in the WillistonBasin Bakken and Three Forksplay."
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota. Northern Oil's core area of focus is the WillistonBasin Bakken and Three Forkstrend in North Dakotaand Montana.
More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.
SAFE HARBOR
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations and industry conditions are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, general economic or industry conditions, nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
CONTACT: Eric Nerhus, Vice President, Business Development Phone: 952-476-9800 Email: [email protected]
SOURCE Northern Oil and Gas, Inc.
Released October 12, 2010