Northern Oil and Gas, Inc. Announces July 31, 2011 Reserve Report and Provides Operations and Guidance Update
WAYZATA, Minn., Sept. 21, 2011 /PRNewswire/ --
- 34.8 Million Barrels of Oil Equivalent Estimated Proven Reserves
- Proved Reserves Increased 121% From December 31, 2010
- Present Value Increased 195% From December 31, 2010
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) ("Northern Oil") today announced completion of its interim reservoir engineering calculation estimating reserves as of July 31, 2011, and updates third quarter production guidance and recent completion and drilling activity.
RESERVES UPDATE
Summary of Oil and Gas Reserves as of July 31, 2011 | |||||||||
Natural Gas | Crude Oil | Total | Pre-Tax | ||||||
Proved developed reserves | 3,696,530 | 7,260,889 | 7,876,977 | $287,194,125 | |||||
Proved developed non-producing reserves | 1,772,235 | 2,530,295 | 2,825,668 | 107,276,609 | |||||
Proved undeveloped reserves | 15,192,431 | 21,583,642 | 24,115,714 | 476,071,562 | |||||
Total proved reserves | 20,661,196 | 31,374,826 | 34,818,359 | $870,542,296 | |||||
Summary of Oil and Gas Reserves as of December 31, 2010 | |||||||||
Natural Gas | Crude Oil | Total | Pre-Tax | ||||||
Proved developed reserves | 2,698,401 | 4,857,272 | 5,307,006 | $160,307,688 | |||||
Proved developed non-producing reserves | 815,026 | 983,474 | 1,119,312 | 30,829,818 | |||||
Proved undeveloped reserves | 6,936,538 | 8,152,953 | 9,309,043 | 104,374,016 | |||||
Total proved reserves | 10,449,965 | 13,993,699 | 15,735,361 | $295,511,522 | |||||
(1) | Crude oil and natural gas reserve quantities and related discounted future net cash flows as of July 31, 2011 are estimated assuming a constant realized price of $86.88 per barrel of crude oil and a constant realized price of $5.86 per Mcf of natural gas, each of which is based on an unweighted arithmetic average of the applicable first-day-of-the-month price for each month between August 1, 2010 and July 31, 2011. All values presented were calculated by Ryder Scott. | |
(2) | Crude oil and natural gas reserve quantities and related discounted future net cash flows as of December 31, 2010 are estimated assuming a constant realized price of $70.46 per barrel of crude oil and a constant realized price of $5.04 per Mcf of natural gas, each of which is based on an unweighted arithmetic average of the applicable first-day-of-the-month price for each month between January 1, 2010 and December 31, 2010. All values presented were calculated by Ryder Scott. | |
(3) | Barrels of Oil Equivalent ("BOE") are computed based on a conversion ratio of one BOE for each barrel of crude oil and one BOE for every 6,000 cubic feet (i.e., 6 Mcf) of natural gas. | |
(4) | Pre-tax PV10% value may be considered a non-GAAP financial measure as defined by the Securities and Exchange Commission and is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable standardized financial measure. Pre-tax PV10% value is computed on the same basis as the standardized measure of discounted future net cash flows but without deducting future income taxes. We believe pre-tax PV10% value is a useful measure for investors for evaluating the relative monetary significance of our crude oil and natural gas properties. We further believe investors may utilize pre-tax PV10% value as a basis for comparison of the relative size and value of our reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. Our management uses this measure when assessing the potential return on investment related to our crude oil and natural gas properties and acquisitions. However, pre-tax PV10% value is not a substitute for the standardized measure of discounted future net cash flows. Our pre-tax PV10% value and the standardized measure of discounted future net cash flows do not purport to present the fair value of our crude oil and natural gas reserves. The pre-tax PV10% values of our total proved reserves in the tables above differ from the tables reconciling our pre-tax PV10% value on the following page of this Current Report due to rounding differences in certain tables of Ryder Scott's reserve reports. | |
STANDARDIZED MEASURE RECONCILIATION
The following tables reconcile the pre-tax PV10% value of Northern Oil's oil and gas reserves to the standardized measure of discounted future net cash flows as of the dates of the Interim Reserve Report and the Annual Reserve Report, respectively.
As of July 31, 2011 | ||
Pre-tax Present Value of estimated future net revenues (Pre-tax PV10% Value) | $870,542,296 | |
Future income taxes, discounted at 10% | (276,314,205) | |
Standardized measure of discounted future net cash flows | $594,228,091 | |
As of December 31, 2010 | ||
Pre-tax Present Value of estimated future net revenues (Pre-tax PV10% Value) | $295,511,531 | |
Future income taxes, discounted at 10% | (84,898,740) | |
Standardized measure of discounted future net cash flows | $210,612,791 | |
Using SEC pricing parameters, Northern Oil's proved reserves were 34.8 million BOE as of July 31, 2011. Reserves using SEC pricing parameters were calculated using constant realized net prices of $86.88 per barrel of crude oil and $5.86 per 1,000 cubic feet (Mcf) of natural gas. The July 31, 2011 estimated proved reserves represent a 121% increase from the December 31, 2010 estimated proved reserves, which were 15.7 million BOE. This increase in proved reserves equates to a 2,172% replacement of 2011 production through July 31, 2011.
Approximately 31% of Northern Oil's proved reserves as of July 31, 2011 are categorized as either proved developed producing or proved developed non-producing, meaning behind pipe. Approximately 69% are classified as proved undeveloped.
Northern Oil's estimated future cash flows, discounted at an annual rate of 10% before giving effect to income taxes (commonly known as PV-10 value), for proved reserves at July 31, 2011 were $870.5 million, compared to $295.5 million at December 31, 2010, representing a 195% increase in PV-10 value during the period.
Northern Oil's 2010 year-end reservoir engineering calculations and July 31, 2011 reservoir engineering calculations were both prepared by Ryder Scott Company, L.P.
UPDATED GUIDANCE
Northern Oil currently expects production will increase approximately 30% to 40% in the third quarter of 2011 compared to the second quarter of 2011. Northern Oil expects to provide fourth quarter guidance in connection with its third quarter earnings release.
RECENT COMPLETION HIGHLIGHTS
The following table illustrates certain highlighted well completions in which Northern Oil has recently participated with a working interest ("WI").
WELL NAME | OPERATOR | STATE | COUNTY | WI* | IP** | ||
BIGHORN #1-6H | SINCLAIR | ND | DUNN | 48.79% | 1,218 | ||
MUSTANG #1-22H | SLAWSON | ND | MOUNTRAIL | 39.56% | 1,829 | ||
ALAMO #2-19-18H | SLAWSON | ND | MOUNTRAIL | 29.98% | 1,287 | ||
PORCUPINE #1-19H | SINCLAIR | ND | DUNN | 29.02% | 1,531 | ||
DIAMONDBACK #2-21H | SLAWSON | ND | MOUNTRAIL | 25.23% | 1,909 | ||
CYCLONE #1-21-16H | SLAWSON | ND | MCKENZIE | 25.00% | 1,440 | ||
ATHENA #1-36H | SLAWSON | ND | MOUNTRAIL | 21.88% | 945 | ||
CRUISER #2-16-9H | SLAWSON | ND | MOUNTRAIL | 16.44% | 1,115 | ||
MUSKRAT FEDERAL #2-28-33H | SLAWSON | ND | MOUNTRAIL | 12.83% | 1,194 | ||
HUNTER #1-8-17H | SLAWSON | ND | MOUNTRAIL | 11.74% | 1,668 | ||
SUBMARINER #1-23-24H | SLAWSON | ND | MOUNTRAIL | 10.89% | 1,194 | ||
* | The WI noted above are based on Northern Oil's internal records and are subject to verification by operators' third-party legal counsel in connection with the preparation of final division order title opinions. | ||||||
** | The "IP" means the initial production ("IP") rate expressed in barrels of oil per day. The IP rate is the 24-hour "Peak Production Rate." Peak Production Rates may be established following the initial day of production, depending on 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. The IP is computed using crude oil production only, without taking into consideration any associated natural gas production. | ||||||
CURRENT DRILLING ACTIVITY
The following table illustrates 154 Gross (18.42 Net) Bakken or Three Forks wells drilling, awaiting completion or completing in which Northern Oil is participating with a working interest as of September 20, 2011.
WELL NAME | OPERATOR | STATE | COUNTY | WI | ||
1 | PROBE #1-19-30H | SLAWSON | ND | MOUNTRAIL | 75.86% | |
2 | KNUDSVIG #12-1-160-100H 1PB | BAYTEX | ND | DIVIDE | 57.11% | |
3 | HIGHLAND #2-9H | SINCLAIR | ND | MOUNTRAIL | 54.57% | |
4 | ROSE #147-99-28-2H | CONOCO PHILLIPS | ND | MCKENZIE | 50.00% | |
5 | LORI #18-19H | FIDELITY | ND | MOUNTRAIL | 47.06% | |
6 | BRAGG #32-29-160-98H 1NC | BAYTEX | ND | DIVIDE | 43.18% | |
7 | MUSTANG #2-22H | SLAWSON | ND | MOUNTRAIL | 39.56% | |
8 | KANDIYOHI #1-19H | EOG RESOURCES | ND | BURKE | 37.47% | |
9 | CONDOR #1-36-25H | SLAWSON | ND | MCKENZIE | 35.94% | |
10 | CHARLIE SORENSON 17-8 #1-H | BRIGHAM | ND | MOUNTRAIL | 33.58% | |
11 | CHARLIE SORENSON 17-8 #2-H | BRIGHAM | ND | MOUNTRAIL | 33.58% | |
12 | OLSON RANCH #1-21-16H | G3 OPERATING | MT | ROOSEVELT | 33.00% | |
13 | YUKON #12-1-163-98H | SAMSON RESOURCES | ND | DIVIDE | 32.81% | |
14 | HOLLAND #9-19H | NORTH PLAINS | ND | WILLIAMS | 32.68% | |
15 | DENALI #13-24-163-98H | SAMSON RESOURCES | ND | DIVIDE | 32.45% | |
16 | CROSBY CREEK #1-5H | SINCLAIR | ND | DUNN | 29.63% | |
17 | FRENCH #21-30H | WHITING | MT | ROOSEVELT | 29.20% | |
18 | BLUE JAY #32-29-163-95H | SAMSON RESOURCES | ND | DIVIDE | 29.13% | |
19 | AV-SCHWARTZ #163-93-1102H-1 | HESS | ND | BURKE | 29.08% | |
20 | LARK #29-32-162-96H | SAMSON RESOURCES | ND | DIVIDE | 28.62% | |
21 | VAINVILLE #22-2623H | EOG RESOURCES | ND | BURKE | 28.08% | |
22 | STORK #20-17-162-96H | SAMSON RESOURCES | ND | DIVIDE | 27.99% | |
23 | PELICAN #26-35-162-96H | SAMSON RESOURCES | ND | DIVIDE | 27.30% | |
24 | ZI CLIFFSIDE #12-11H | WILLIAMS | ND | MCKENZIE | 26.80% | |
25 | FRANK #31-4-1H | GMX RESOURCES | ND | STARK | 25.21% | |
26 | CPEC RIDGEWAY #25-36-163N-101W | CRESCENT POINT | ND | DIVIDE | 25.00% | |
27 | STAMPEDE #2-36-25H | SLAWSON | ND | WILLIAMS | 25.00% | |
28 | FREDDY #1-8H | CONTINENTAL | ND | DIVIDE | 24.97% | |
29 | STALLION #2-1-12H | SLAWSON | ND | MOUNTRAIL | 22.41% | |
30 | MARAUDER #13-24-162-98H | SAMSON RESOURCES | ND | DIVIDE | 21.30% | |
31 | REGEL #12-1-162-98H | SAMSON RESOURCES | ND | DIVIDE | 21.30% | |
32 | NEPTUNE #2-15H | SLAWSON | ND | MOUNTRAIL | 20.35% | |
33 | OBENOUR #150-99-21-16-1H | NEWFIELD | ND | MCKENZIE | 18.75% | |
34 | REGETH #22-1H | HESS | ND | DUNN | 18.75% | |
35 | EN-LONETREE FARMS #156-94-0805H-2 | HESS | ND | MOUNTRAIL | 18.71% | |
36 | CRESCENT FARMS 7-6 #1H | ZAVANNA | ND | MCKENZIE | 17.88% | |
37 | HARLAN REBSOM #1-2-11H-143-95 | OXY | ND | DUNN | 17.81% | |
38 | TARPON FEDERAL #21-4H | WHITING | ND | MCKENZIE | 17.44% | |
39 | SKEDSVOLD #150-101-4B-9-1H | PETRO HUNT | ND | MCKENZIE | 17.19% | |
40 | LYNN #5502 11-10H | OASIS | ND | WILLIAMS | 15.68% | |
41 | SIDONIA #41-2017H | EOG RESOURCES | ND | MOUNTRAIL | 15.63% | |
42 | STATE JAEGER #1-16-21H-142-94 | OXY | ND | DUNN | 15.63% | |
43 | EN-KIESEL #155-94-1918H-2 | HESS | ND | MOUNTRAIL | 15.03% | |
44 | GO-SOLBERG #15-31H | HESS | ND | WILLIAMS | 14.76% | |
45 | RHODA #24-31H | MARATHON | ND | MOUNTRAIL | 12.82% | |
46 | HILLY 22-15 #1H | BRIGHAM | ND | MCKENZIE | 12.66% | |
47 | EN-PERSON 156-94-1102H-2 | HESS | ND | MOUNTRAIL | 12.55% | |
48 | EN-PERSON 156-94-1102H-3 | HESS | ND | MOUNTRAIL | 12.55% | |
49 | LOSTWOOD #1-1201H | EOG RESOURCES | ND | MOUNTRAIL | 12.52% | |
50 | LOSTWOOD #18-1224H | EOG RESOURCES | ND | MOUNTRAIL | 12.52% | |
51 | LOSTWOOD #19-1324H | EOG RESOURCES | ND | MOUNTRAIL | 12.52% | |
52 | LOSTWOOD #2-1301H | EOG RESOURCES | ND | MOUNTRAIL | 12.52% | |
53 | MATTER STATE #3-17H | CORNERSTONE | ND | BURKE | 12.50% | |
54 | BARKLEY #1-5H | CONTINENTAL | ND | MCKENZIE | 12.32% | |
55 | MOE #19-18-162-100H 1PB | BAYTEX | ND | DIVIDE | 12.24% | |
56 | FERTILE #28-26H | EOG RESOURCES | ND | MOUNTRAIL | 11.88% | |
57 | EN-WANDER #156-94-0904H-1 | HESS | ND | MOUNTRAIL | 11.84% | |
58 | HUNTER #2-8-17 | SLAWSON | ND | MOUNTRAIL | 11.74% | |
59 | MUSTANG #7-6-163-98H | SAMSON RESOURCES | ND | DIVIDE | 11.72% | |
60 | LOSTWOOD #102-3526H | EOG RESOURCES | ND | MOUNTRAIL | 11.52% | |
61 | LOSTWOOD #16-3526H | EOG RESOURCES | ND | MOUNTRAIL | 11.52% | |
62 | LOSTWOOD #20-1123H | EOG RESOURCES | ND | MOUNTRAIL | 11.51% | |
63 | LOSTWOOD #21-1402H | EOG RESOURCES | ND | MOUNTRAIL | 11.51% | |
64 | LOSTWOOD #22-1423H | EOG RESOURCES | ND | MOUNTRAIL | 11.51% | |
65 | LOSTWOOD #23-3526H | EOG RESOURCES | ND | MOUNTRAIL | 11.51% | |
66 | LOSTWOOD #6-1102H | EOG RESOURCES | ND | MOUNTRAIL | 11.51% | |
67 | LANCASTER #2-11-162N-102W | CRESCENT POINT | ND | DIVIDE | 11.10% | |
68 | GABRIEL #3-36-25H | SLAWSON | ND | MCKENZIE | 10.94% | |
69 | GORDON PAVLICEK #1-17-20H 141-95 | OXY | ND | DUNN | 10.94% | |
70 | SIDONIA #9-35H | EOG RESOURCES | ND | MOUNTRAIL | 10.78% | |
71 | CLEARWATER #25-3202H | EOG RESOURCES | ND | MOUNTRAIL | 10.29% | |
72 | BROWN 30-19 #2H | BRIGHAM | ND | MOUNTRAIL | 9.25% | |
73 | WHITE #157-100-17B-20-1H | PETRO HUNT | ND | WILLIAMS | 7.55% | |
74 | 1-H OSMOND #3-10 | NEWFIELD | ND | WILLIAMS | 7.51% | |
75 | WALDOCK #21-16H | MARATHON | ND | MCLEAN | 7.05% | |
76 | ROSENVOLD #1-30H | CONTINENTAL | ND | DIVIDE | 6.44% | |
77 | KANDIYOHI #5-3031H | EOG RESOURCES | ND | BURKE | 6.36% | |
78 | SQUADRON #1-15-14H | SLAWSON | MT | ROOSEVELT | 6.30% | |
79 | BUCKLEY #1-9H | CONTINENTAL | MT | RICHLAND | 6.25% | |
80 | EN-JOHNSON -A 155-94-2932H-2 | HESS | ND | MOUNTRAIL | 6.25% | |
81 | KANDIYOHI #21-3427H | EOG RESOURCES | ND | BURKE | 6.25% | |
82 | GO-ALASKON-156-97-3427H-1 | HESS | ND | WILLIAMS | 5.94% | |
83 | 1-H HUNTER #17-20 | NEWFIELD | ND | WILLIAMS | 5.55% | |
84 | SIDONIA #26-2413H | EOG RESOURCES | ND | MOUNTRAIL | 5.55% | |
85 | DAGGER #1-10H | SLAWSON | ND | DUNN | 5.30% | |
86 | RUTLEDGE #1-32H | CONTINENTAL | ND | DUNN | 4.97% | |
87 | BUFFALO 34-12H | MARATHON | ND | DUNN | 4.91% | |
88 | BRUCE 5-8 #1H | ZAVANNA | ND | WILLIAMS | 4.69% | |
89 | RAY #12-27TFH | WHITING | ND | MOUNTRAIL | 4.69% | |
90 | SORENSON #34-32 NWH | DENBURY | ND | MCKENZIE | 4.69% | |
91 | EN-CHARLES WOOD 157-94-1720H-1 | HESS | ND | MOUNTRAIL | 4.61% | |
92 | HOWITZER #2-25 | SLAWSON | ND | MOUNTRAIL | 4.50% | |
93 | HONOLULU #1-22H | CONTINENTAL | ND | MCKENZIE | 4.22% | |
94 | OXY OLSON #160-90-10-P-1H | OXY | ND | BURKE | 4.17% | |
95 | AMBUSH #1-31-30H | SLAWSON | ND | WILLIAMS | 3.96% | |
96 | REIGER #9-11H | NORTH PLAINS | ND | WILLIAMS | 3.91% | |
97 | EN-JOHNSON #155-94-2017H-2 | HESS | ND | MOUNTRAIL | 3.91% | |
98 | JOHNSON 44-32H | MARATHON | ND | MOUNTRAIL | 3.87% | |
99 | WALLACE #7-1H | HESS | ND | DUNN | 3.76% | |
100 | WANNEMACHER #1-4-9H-142-95 | OXY | ND | DUNN | 3.14% | |
101 | WILLIAM 41X-06 | XTO ENERGY | ND | MCKENZIE | 3.14% | |
102 | FREDRICKSON #160-94-33C-28-2H | PETRO HUNT | ND | BURKE | 3.13% | |
103 | GO-SOINE A-156-97-3229H-1 | HESS | ND | WILLIAMS | 3.13% | |
104 | KOUFAX 3-10 #1H | ZAVANNA | ND | MCKENZIE | 3.13% | |
105 | SYVERSON #150-99-36-25-1H | NEWFIELD | ND | MCKENZIE | 3.13% | |
106 | NELSON #2-26H | SINCLAIR | ND | MOUNTRAIL | 3.11% | |
107 | GLENDON #1-17H | CONTINENTAL | ND | WILLIAMS | 3.05% | |
108 | MARVIN 27-34 #1H | BRIGHAM | ND | MCKENZIE | 2.86% | |
109 | ROHDE #43-1TFH | WHITING | ND | MOUNTRAIL | 2.57% | |
110 | VERLYN STROMMEN #34-8H | MARATHON | ND | DUNN | 2.50% | |
111 | EN-NORSTEDT 157-93-1720H-1 | HESS | ND | MOUNTRAIL | 2.50% | |
112 | HELLING TRUST #11-15H | OASIS | ND | MOUNTRAIL | 2.41% | |
113 | ROLFSON #11-16H | DENBURY | ND | MCKENZIE | 2.08% | |
114 | CLEAR WATER #1-24-25H | HUNT OIL | ND | MOUNTRAIL | 2.08% | |
115 | EN-HYNEK#155-93-0112H-2 | HESS | ND | MOUNTRAIL | 1.82% | |
116 | EN-HYNEK#155-93-0112H-3 | HESS | ND | MOUNTRAIL | 1.82% | |
117 | COOK #2-24-13H | HUNT OIL | ND | DUNN | 1.70% | |
118 | CHARLOTTE #2-22H | CONTINENTAL | ND | MCKENZIE | 1.68% | |
119 | BARSTAD 23-14 #1H | BRIGHAM | ND | MOUNTRAIL | 1.65% | |
120 | DRONE #1-34-27H | SLAWSON | ND | DUNN | 1.59% | |
121 | ELEANOR TWIST 1-10-3H-143-95 | OXY | ND | DUNN | 1.57% | |
122 | TILTON #34-7H | CONOCO PHILLIPS | ND | DUNN | 1.53% | |
123 | SCHILKE #1-30H | CONTINENTAL | ND | DIVIDE | 1.51% | |
124 | THIEL 2 11X-12 | XTO ENERGY | MT | RICHLAND | 1.47% | |
125 | LOOMER #24-34 NEH | DENBURY | ND | MCKENZIE | 1.41% | |
126 | EN-CVANCARA A-155-93-3231H-1 | HESS | ND | MOUNTRAIL | 1.39% | |
127 | EN-CVANCARA A-155-93-3334H-2 | HESS | ND | MOUNTRAIL | 1.39% | |
128 | CROSSBOW #1-7-6H | SLAWSON | ND | MCKENZIE | 1.30% | |
129 | HOVDEN #15-1H | HESS | ND | DUNN | 1.30% | |
130 | KIRBY #9-7H | NORTH PLAINS | ND | WILLIAMS | 1.27% | |
131 | BRUENI #21-16TFH | WHITING | ND | STARK | 1.25% | |
132 | JAMES HILL #10-0112H | EOG RESOURCES | ND | MOUNTRAIL | 1.25% | |
133 | EN-FRETHEIM A-155-93-3334H-2 | HESS | ND | MOUNTRAIL | 1.19% | |
134 | EN-FRETHEIM A-155-93-3334H-1 | HESS | ND | MOUNTRAIL | 1.18% | |
135 | RAYMOND 21X-5 | XTO ENERGY | ND | WILLIAMS | 1.16% | |
136 | AMY ELIZABETH #11-2H | ARSENAL ENERGY | ND | MOUNTRAIL | 1.13% | |
137 | DAWSON #5494 13-1H | OASIS | ND | MOUNTRAIL | 1.13% | |
138 | CLEARWATER #4-11H | EOG RESOURCES | ND | MOUNTRAIL | 1.04% | |
139 | LEWIS #5300 31-31H | OASIS | ND | WILLIAMS | 1.02% | |
140 | SPRATLEY #5494 34-13H | OASIS | ND | MOUNTRAIL | 0.98% | |
141 | EN-FRETHEIM A-155-93-3334H-3 | HESS | ND | MOUNTRAIL | 0.96% | |
142 | WISNESS #152-96-28A-33-1H | PETRO HUNT | ND | MCKENZIE | 0.82% | |
143 | CATRON #1-26H | CONTINENTAL | ND | DUNN | 0.78% | |
144 | SOLBERG #15-8H | HESS | ND | WILLIAMS | 0.78% | |
145 | CARL #1-11H | CONTINENTAL | ND | DUNN | 0.66% | |
146 | TIM ECKELBERG #44-22H | MARATHON | ND | DUNN | 0.61% | |
147 | MARTENS #2-5H | SINCLAIR | ND | MOUNTRAIL | 0.56% | |
148 | CANNONBALL FEDERAL #2-27-34H | SLAWSON | ND | MOUNTRAIL | 0.55% | |
149 | CANNONBALL FEDERAL #3-27-34H | SLAWSON | ND | MOUNTRAIL | 0.55% | |
150 | BRAY #5301 43-12H | OASIS | ND | MCKENZIE | 0.52% | |
151 | BELL #14-1H | HESS | ND | MCKENZIE | 0.52% | |
152 | EN-REITCH #157-94-3229H-3 | HESS | ND | MOUNTRAIL | 0.52% | |
153 | MORAN #15-1H | HESS | ND | MCKENZIE | 0.51% | |
154 | REDWING #1-3-10H | HUNT OIL | ND | MCKENZIE | 0.50% | |
Michael Reger, Chief Executive Officer, commented, "We are encouraged by the pace of drilling and completion activity during the third quarter of 2011, as weather improved in the Williston Basin during the third quarter compared to the second quarter of 2011. The record rig count in North Dakota allows us to continue executing our business plan by turning high quality acreage into production and cash flow at an accelerating pace. The drilling activity detailed above represents the expansion of the delineated area of high-quality Three Forks production, the extension of the field into Montana and the continued success of Slawson's drilling program in Mountrail County. We continue to execute our strategy of acquiring high quality, non-operated acreage and turning it efficiently to production and cash flow."
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 Williston Basin Bakken and Three Forks play in North Dakota and 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, industry conditions, and indebtedness covenant compliance 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:
Investor Relations
Erik Nerhus
952-476-9800
SOURCE Northern Oil and Gas, Inc.
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