Northern Oil and Gas, Inc. Increases 2010 Drilling Guidance and Provides Operations Update

Oct 12, 2010, 07:00 ET from Northern Oil and Gas, Inc.

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 Williston Basin Bakken and Three Forks play.

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 Forks wells, 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 Forks plays.  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 Forks play in key counties of the Williston Basin."

2010 ACREAGE ACQUISITIONS

Northern Oil has acquired a total of 38,864 net acres year-to-date in the core of the Williston Basin Bakken and Three Forks play at a total cost of approximately $42.2 million.  This represents an average cost of $1,086 per acre.

RECENT COMPLETION HIGHLIGHTS

The following table illustrates the most recent well completions in which Northern Oil participated.

WELL NAME

OPERATOR

COUNTY/STATE

WI

IP/BOEPD*

DAYS USED TO COMPUTE AVG. BOEPD

AVG. 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

VAGABOND #1-27H

SLAWSON

MOUNTRAIL, ND

60.92%

Drilling

BAKKEN

JEANIE 25-36 #2H

URSA

MCKENZIE, ND

54.58%

Drilling

BAKKEN

BIGHORN #1-6H

SINCLAIR

DUNN, ND

48.79%

Awaiting Completion

BAKKEN

GOBLIN #1-26H

SLAWSON

MOUNTRAIL, ND

45.54%

Awaiting Completion

BAKKEN

WATER MOCCASIN #1-34H

SLAWSON

MOUNTRAIL, ND

44.14%

Awaiting Completion

THREE FORKS

GUNNISON #44-25H

PRIMA

BURKE, ND

39.35%

Drilling

BAKKEN

TANBERG #1-4H

CONTINENTAL

DIVIDE, ND

36.86%

Awaiting Completion

THREE FORKS

SILENCER #1-29H

SLAWSON

MOUNTRAIL, ND

32.06%

Drilling

BAKKEN

AV-SCHWARTZ-163-93-1102H-1

HESS

BURKE, ND

30.61%

Drilling

DUAL 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

STAMPEDE #1-36-25H

SLAWSON

WILLIAMS, ND

25.00%

Awaiting Completion

BAKKEN

REVOLVER #1-35H

SLAWSON

MOUNTRAIL, ND

24.58%

Drilling

BAKKEN

FERTILE #29-27H

EOG RESOURCES

MOUNTRAIL, ND

23.75%

Completing

BAKKEN

LOSTWOOD #13-25H

EOG RESOURCES

MOUNTRAIL, ND

22.86%

Drilling

BAKKEN

RENEGADE #1-10H

SLAWSON

ROOSEVELT, MT

22.07%

Awaiting Completion

BAKKEN

RASCAL #1-18H

SLAWSON

RICHLAND, MT

20.00%

Drilling

BAKKEN

SUNDHAGEN 21X-3

XTO ENERGY

WILLIAMS, ND

17.77%

Completing

THREE FORKS

SCOUNDREL #1-8H

SLAWSON

RICHLAND, MT

16.81%

Awaiting Completion

BAKKEN

SIDONIA #23-2017H

EOG RESOURCES

MOUNTRAIL, ND

15.63%

Drilling

BAKKEN

TOLKSDORF 24X-27

XTO ENERGY

RICHLAND, MT

15.63%

Awaiting Completion

BAKKEN

DARCY DIRKACH #14-12H

MARATHON

DUNN, ND

14.79%

Awaiting Completion

BAKKEN

ARMADA FEDERAL #1-14-13H

SLAWSON

MOUNTRAIL, ND

14.20%

Completing

BAKKEN

LIBERTY #3-14H

EOG RESOURCES

MOUNTRAIL, ND

13.75%

Awaiting Completion

BAKKEN

HOLTE 21X-4

XTO ENERGY

WILLIAMS, ND

13.63%

Drilling

THREE FORKS

BANKS #5892 44-34H

OASIS

MOUNTRAIL, ND

13.13%

Completing

BAKKEN

MUSKRAT FEDERAL #1-28-33H

SLAWSON

MOUNTRAIL, ND

12.83%

Awaiting Completion

BAKKEN

HOIBY #158-94-4B-3-1H

PETRO HUNT

MOUNTRAIL, ND

12.81%

Completing

BAKKEN

GUSTAFSON #29-32-161-92H

SAMSON

BURKE, ND

12.50%

Awaiting Completion

BAKKEN

ZI PAYETTE #10-15H

ZENERGY

MCKENZIE, ND

12.50%

Awaiting Completion

BAKKEN

FERTILE #28-26H

EOG RESOURCES

MOUNTRAIL, ND

11.88%

Completing

BAKKEN

HUNTER #1-8-17H

SLAWSON

MOUNTRAIL, ND

11.74%

Awaiting Completion

BAKKEN

SUBMARINER FEDERAL #1-23-24H

SLAWSON

MOUNTRAIL, ND

10.89%

Awaiting Completion

BAKKEN

EN-WEFALD #1324H-1

HESS

MOUNTRAIL, ND

9.38%

Drilling

DUAL LATERAL

FRANCHUK #44-20SWH

ENCORE

DUNN, ND

9.38%

Awaiting Completion

BAKKEN

EVANS #5693 42-27H

OASIS

MOUNTRAIL, ND

9.38%

Drilling

BAKKEN

MCGAHAN #1-18-7H

HUNT

MOUNTRAIL, ND

8.56%

Awaiting Completion

BAKKEN

EN-HEINLE-#2536H-2

HESS

MOUNTRAIL, ND

7.29%

Awaiting Completion

DUAL LATERAL

EN-HEINLE-#2536H-3

HESS

MOUNTRAIL, ND

7.29%

Drilling

DUAL LATERAL

LIPPERT 1-12-#1H

BRIGHAM

WILLIAMS, ND

6.87%

N/A

BAKKEN

VIXEN FEDERAL #1-19-30H

SLAWSON

MOUNTRAIL, ND

6.70%

Awaiting Completion

BAKKEN

HELEN 11X-05

XTO ENERGY

WILLIAMS, ND

6.64%

Drilling

THREE FORKS

KJORSTAD #5300 24-22H

OASIS

WILLIAMS, ND

6.46%

Awaiting Completion

BAKKEN

NORWAY #1-5H

CONTINENTAL

MCKENZIE, ND

5.93%

Drilling

THREE FORKS

RELLA #18-19H

ZENERGY

WILLIAMS, ND

5.70%

Drilling

BAKKEN

SIDONIA #17-1324H

EOG RESOURCES

MOUNTRAIL, ND

5.55%

Completing

BAKKEN

MANN #21-18TFH

WHTING

STARK, ND

5.01%

Drilling

THREE FORKS

ROUND PRAIRIE #2-20H

EOG RESOURCES

WILLIAMS, ND

5.00%

Awaiting Completion

BAKKEN

STENEHJEM #27-34-1H

ABRAXAS

WILLIAMS, ND

4.87%

Awaiting Completion

BAKKEN

RAVIN #36-35-1H

ABRAXAS

WILLIAMS, ND

4.64%

Awaiting Completion

BAKKEN

PALERMO #1-24-25H

HUNT

MOUNTRAIL, ND

4.25%

Drilling

BAKKEN

JAGUAR #1-32H

SLAWSON

MOUNTRAIL, ND

4.22%

Awaiting Completion

BAKKEN

MILLER #44-11H

WHTING

WILLIAMS, ND

4.12%

Drilling

BAKKEN

KOALA #9-5-6-5H

KODIAK

MCKENZIE, ND

3.93%

Drilling

BAKKEN

BUD #1-19H

CONTINENTAL

WILLIAMS, ND

3.70%

Drilling

THREE FORKS

KOSTELECKY #31-6H

FIDELITY

STARK, ND

3.60%

Drilling

THREE FORKS

RS-SHUHART#2726H-2

HESS

MOUNTRAIL, ND

3.52%

Drilling

DUAL LATERAL

CROWFOOT #2-20H

EOG RESOURCES

MOUNTRAIL, ND

3.13%

Completing

BAKKEN

MEADOWLARK #2-6H

CONTINENTAL

DUNN, ND

3.12%

Awaiting Completion

BAKKEN

MEADOWLARK #3-6H

CONTINENTAL

DUNN, ND

3.12%

Drilling

THREE FORKS

SKACHENKO #2-31H

CONTINENTAL

DUNN, ND

3.12%

Awaiting Completion

THREE FORKS

SKACHENKO #3-31H

CONTINENTAL

DUNN, ND

3.12%

Drilling

BAKKEN

CLEARWATER #102-0506H

EOG RESOURCES

MOUNTRAIL, ND

2.95%

Drilling

THREE FORKS

CLEARWATER #8-0506H

EOG RESOURCES

MOUNTRAIL, ND

2.95%

Drilling

THREE FORKS

EN-ABRAHAMSON #3019H-2

HESS

MOUNTRAIL, ND

2.92%

Awaiting Completion

DUAL LATERAL

EN-ABRAHAMSON #3019H-3

HESS

MOUNTRAIL, ND

2.92%

Drilling

DUAL LATERAL

CARTER 14X-12

XTO ENERGY

WILLIAMS, ND

2.68%

Completing

THREE FORKS

WAYZETTA #142-3019H

EOG RESOURCES

MOUNTRAIL, ND

2.47%

Drilling

BAKKEN

CVANCARA #11-14H

WHTING

MOUNTRAIL, ND

2.44%

Drilling

BAKKEN

HODENFIELD #15-23H

AMERICAN

WILLIAMS, ND

2.38%

Drilling

BAKKEN

EN-WILL TRUST #2734H-3

HESS

MOUNTRAIL, ND

2.34%

Drilling

DUAL LATERAL

EN-TRINITY #2833H-1

HESS

MOUNTRAIL, ND

2.28%

Drilling

DUAL LATERAL

PHOENIX #1-9H

SLAWSON

MOUNTRAIL, ND

2.28%

Awaiting Completion

BAKKEN

MCD #11-29H

FIDELITY

MOUNTRAIL, ND

2.08%

Awaiting Completion

THREE FORKS

DOMASKIN #19-30-29H

FIDELITY

MOUNTRAIL, ND

1.94%

Awaiting Completion

BAKKEN

LYNN #19-20-29H

FIDELITY

MOUNTRAIL, ND

1.94%

Awaiting Completion

BAKKEN

WAYZETTA #134-17H

EOG RESOURCES

MOUNTRAIL, ND

1.80%

Drilling

THREE FORKS

JORGENSON #158-94-11D-2-1H

PETRO HUNT

MOUNTRAIL, ND

1.49%

Drilling

THREE FORKS

PALERMO #1-5-34H

HUNT

MOUNTRAIL, ND

1.47%

Awaiting Completion

BAKKEN

ROBERT HEUER #2-20H

CONTINENTAL

DIVIDE, ND

1.38%

Drilling

THREE FORKS

ETHAN HALL 6B-31-30-1H

ENERPLUS

DUNN, ND

1.35%

Drilling

BAKKEN

HARLEY #31-2H

BURLINGTON

MCKENZIE, ND

1.29%

Awaiting Completion

BAKKEN

DAKOTA-3 MASON #2-11H

ZENERGY

MOUNTRAIL, ND

0.98%

Completing

BAKKEN

STEPANEK #8-5H

ZENERGY

MCKENZIE, ND

0.81%

Completing

BAKKEN

FARVER #1-29H

CONTINENTAL

DIVIDE, ND

0.78%

Drilling

THREE FORKS

SATTERTHWAITE #43-1H

WHTING

MOUNTRAIL, ND

0.70%

Drilling

BAKKEN

EN-FRANDSON #2116H-1

HESS

MOUNTRAIL, ND

0.61%

Drilling

DUAL LATERAL

MARTENS #1-5H

SINCLAIR

MOUNTRAIL, ND

0.56%

Awaiting Completion

BAKKEN

FORT BERTHHOLD #152-94-13B-24-1H

PETRO HUNT

MCKENZIE, ND

0.52%

Awaiting Completion

THREE 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

 Year

Volumes (Barrels)

  Weighted 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 2012 at a blended average of approximately $80.72 per barrel.

MANAGEMENT COMMENT

Northern Oil's Chief Executive Officer, Michael Reger, commented "The scale and scope of the Bakken and Three Forks play 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 Dakota rig 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 Williston Basin.  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 Williston Basin Bakken and Three Forks play."

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 trend 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 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: enerhus@northernoil.com

SOURCE Northern Oil and Gas, Inc.



RELATED LINKS

http://www.NorthernOil.com