Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE DATED APRIL 12, 2010 - NORTHERN OIL & GAS, INC. | exhibit991_04122010.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): April 12, 2010
NORTHERN
OIL AND GAS, INC.
(Exact
name of Registrant as specified in its charter)
|
Nevada
|
001-33999
|
95-3848122
|
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File Number)
|
(IRS
Employer
Identification
No.)
|
|
315
Manitoba Avenue – Suite 200
Wayzata,
Minnesota
|
55391
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code (952) 476-9800
[Missing Graphic Reference]
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
|
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act
(17CFR 240.14a-12)
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
|
1
SECTION
2 – FINANCIAL INFORMATION
Item 2.02
– Results of Operations and Financial Condition.
On April
12, 2010, Northern Oil and Gas, Inc. (the “Company”) provided an operations
update related to drilling and completion activity in the Williston Basin Bakken
and Three Forks play. In connection with this operations update, the
Company also provided information regarding its preliminary financial results
for first quarter 2010.
2010
DRILLING ACTIVITY
Since
January 1, 2010, the Company has spud 5.15 net wells. Of those wells,
1.76 net wells are currently drilling but have not reached total depth and 2.05
net wells have been drilled to total depth and are awaiting fracture stimulation
to commence production. This high number of wells awaiting completion
was caused by longer time delays from completion of drilling to commencement of
oil sales, primarily due to the seasonal backlog of fracture stimulations that
typically occurs in early spring as a result of reduced completion activities
during the coldest months in North Dakota.
The
Company now expects to spud up to 18 net wells in 2010, which represents an
increase from previous guidance of 15 net wells. The Company believes
the increase in expected wells is based upon the increasing rig count, which is
now at an all-time high of 108 drillings rigs in the North Dakota Bakken
play. The Company’s Chief Executive Officer, Michael Reger, commented
“The pace of drilling in the Bakken and Three Forks plays continues to
increase. Given recent announcements by key operators in the plays,
we expect 2010 drilling to increase by up to 20% to a total of 18 net Bakken and
Three Forks wells.”
FIRST
QUARTER 2010 PRODUCTION AND PRELIMINARY FINANCIAL RESULTS
The
Company’s first quarter 2010 production increased approximately 10% and oil and
gas sales increased approximately 20% compared to fourth quarter
2009. First quarter 2010 production approximated 125,000 barrels of
oil equivalent (“BOE”), an increase from 114,000 BOE in fourth quarter
2009. First quarter 2010 oil and gas sales were approximately $8.4
million, an increase of approximately 20% from fourth quarter 2009 oil and gas
sales of $6,965,622. First quarter 2010 net earnings are expected to
be approximately $0.03 per outstanding share.
COMPLETION
ACTIVITY
The
Company has experienced significant delays in fracture stimulation appointments
for wells across all operators with whom it participates. The Company
believes this trend has been driven primarily by seasonal issues and increased
costs of completing during the coldest winter months. Additionally,
the Company believes there has been some constraint in moving fracture
stimulation supplies, such as frac sand, into the field due to seasonal
conditions. The Company expects that for the next quarter delay
between fracture stimulation and completion may average as much as six
weeks. This is not affecting the pace of drilling and the Company
continues to see wells drilled to total depth at an accelerated
pace. However, delays in fracture stimulation have the effect of
delaying production additions.
RECENT
COMPLETION HIGHLIGHTS
The
Company continues to believe that early 24 hour rates are not useful in
determining the economics of a well. The Company is focused on well
payout, which, in its core Slawson Exploration drilling program, the Company
expects to occur four months on average following commencement of
production. As previously guided, the Company will begin to
report well flow rates as far out as 60 days, when available.
The
following table outlines well completions as of April 11, 2010.
|
WELL
NAME
|
OPERATOR
|
NOG
WI
|
COUNTY/STATE
|
SPACING
|
FRAC
STAGES
|
INITIAL
PRODUCTION BOEPD
|
DAYS
USED TO COMPUTE AVG. BOEPD
|
AVG.
BOEPD
|
|
STALLION
#1-1-12H
|
SLAWSON
EXPLORATION
|
23.00%
|
MOUNTRAIL,
ND
|
1,280
|
36
|
2,735
|
57
|
1,153
|
|
ZEPHYR
#1-36H
|
SLAWSON
EXPLORATION
|
4.00%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,637
|
30
|
971
|
|
RIPPER
#1-22H
|
SLAWSON
EXPLORATION
|
2.00%
|
MOUNTRAIL,
ND
|
640
|
18
|
2,369
|
20
|
975
|
|
LIFFRIG
#29-20 1-H TFS
|
BRIGHAM
EXPLORATION
|
6.25%
|
MOUNTRAIL,
ND
|
1,280
|
30
|
2,477
|
-
|
-
|
|
MINX
#1-29H
|
SLAWSON
EXPLORATION
|
22.00%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,475
|
60
|
544
|
|
FOX
#1-28H
|
SLAWSON
EXPLORATION
|
4.50%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,819
|
30
|
915
|
|
VAN
HOOK #100-15H TFS
|
EOG
RESOURCES
|
10.00%
|
MOUNTRAIL,
ND
|
640
|
20
|
1,585
|
48
|
858
|
|
KATE
#1-19H
|
CONTINENTAL
RESOURCES
|
12.31%
|
DUNN,
ND
|
1,262
|
22
|
1,503
|
-
|
-
|
|
NORMAN
#1-9H
|
CONTINENTAL
RESOURCES
|
5.50%
|
MCKENZIE,
ND
|
1,280
|
18
|
1,366
|
-
|
-
|
|
BAZOOKA
#1-20H
|
SLAWSON
EXPLORATION
|
2.74%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,290
|
30
|
750
|
|
HOWITZER
#1-25H
|
SLAWSON
EXPLORATION
|
4.00%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,156
|
60
|
564
|
|
WIZARD
#1-35H
|
SLAWSON
EXPLORATION
|
4.50%
|
MOUNTRAIL,
ND
|
640
|
18
|
1,050
|
7
|
873
|
|
MACHETE
#1-19H
|
SLAWSON
EXPLORATION
|
17.18%
|
MOUNTRAIL,
ND
|
640
|
22
|
750
|
20
|
1,019
|
|
COUGAR
FEDERAL #1-30H
|
SLAWSON
EXPLORATION
|
3.81%
|
MOUNTRAIL,
ND
|
640
|
18
|
718
|
20
|
1,118
|
|
EDWARDS
#5992 44-10
|
OASIS
PETROLEUM
|
21.00%
|
BURKE,
ND
|
1,280
|
28
|
612
|
-
|
-
|
|
HIGHLAND
#1-9H
|
SINCLAIR
OIL AND GAS
|
62.50%
|
MOUNTRAIL,
ND
|
640
|
12
|
564
|
-
|
-
|
|
ARVID
#2-34H
|
CONTINENTAL
RESOURCES
|
5.00%
|
DIVIDE,
ND
|
1,280
|
18
|
407
|
-
|
-
|
2
CURRENT
DRILLING ACTIVITY
The
following table illustrates the wells in which the Company has participated that
are drilling or are awaiting completion and have experienced completion delays
due to seasonal conditions as of April 11, 2010. The Company is
currently drilling or completing 3.81 net wells.
|
WELL
NAME
|
OPERATOR
|
NOG
WI
|
COUNTY/STATE
|
STATUS
|
FORMATION
|
|
ALLIE
31X-24
|
XTO
ENERGY
|
7.79%
|
WILLIAMS,
ND
|
COMPLETING
|
THREE
FORKS
|
|
ATLANTIS
FEDERAL #1-34-35H
|
SLAWSON EXPLORATION
|
1.41%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
ABELMANN-STATE
#21-16 #1H
|
BRIGHAM EXPLORATION
|
2.73%
|
MCKENZIE,
ND
|
DRILLING
|
BAKKEN
|
|
BADGER
#1-9H
|
SLAWSON EXPLORATION
|
28.38%
|
MOUNTRAIL,
ND
|
DRILLING
|
BAKKEN
|
|
BARENTHSEN
#6059 44-5H
|
OASIS
PETROLEUM
|
14.30%
|
BURKE,
ND
|
DRILLING
|
BAKKEN
|
|
BROCKMEIER
#1-1H
|
CONTINENTAL RESOURCES
|
6.02%
|
MCKENZIE,
ND
|
COMPLETING
|
BAKKEN
|
|
BURKE
#4-06H
|
EOG
RESOURCES
|
2.47%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
CANNONBALL
FEDERAL #1-27-34H
|
SLAWSON
EXPLORATION
|
0.55%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
CLEARWATER
#17-01H
|
EOG
RESOURCES
|
1.82%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
CVANCARA
#19-18 #1-H
|
BRIGHAM EXPLORATION
|
3.16%
|
WILLIAMS,
ND
|
COMPLETING
|
BAKKEN
|
|
DAKOTA-3
BRUNSELL #16-9H
|
ZENERGY
|
1.13%
|
MOUNTRAIL,
ND
|
DRILLING
|
BAKKEN
|
|
DAKOTA
- 3 VAN HOOK R/S #16-4H
|
ZENERGY
|
1.69%
|
MOUNTRAIL,
ND
|
DRILLING
|
BAKKEN
|
|
EN-SKABO
TRUST ####-##-####H-1
|
HESS
CORP.
|
6.56%
|
MOUNTRAIL,
ND
|
DRILLING
|
DUAL
LATERAL
|
|
FERTILE
#16-20H
|
EOG
RESOURCES
|
1.25%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
FERTILE
#18-30H
|
EOG
RESOURCES
|
0.64%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
FERTILE
#34-31H
|
EOG
RESOURCES
|
10.39%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
GILLUND
#1-32H
|
CONTINENTAL RESOURCES
|
9.62%
|
DIVIDE,
ND
|
DRILLING
|
BAKKEN
|
|
GLADYS
#2-9H
|
NEWFIELD
EXPLORATION
|
2.60%
|
MCKENZIE,
ND
|
DRILLING
|
BAKKEN
|
|
HANSON
#11-12H
|
ENCORE
OPERATING
|
1.05%
|
DUNN,
ND
|
DRILLING
|
BAKKEN
|
|
HM
HOVE 34X-33
|
XTO
ENERGY
|
15.64%
|
WILLIAMS,
ND
|
COMPLETING
|
THREE
FORKS
|
|
HYNEK
#5693 42-35H
|
OASIS
PETROLEUM
|
6.39%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
JERICHO
#2-5H
|
SLAWSON EXPLORATION
|
42.36%
|
MOUNTRAIL,
ND
|
DRILLING
|
THREE
FORKS
|
|
JUGHEAD
FEDERAL #1-26H
|
SLAWSON EXPLORATION
|
2.81%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
KERBAUGH
31X-04
|
XTO
ENERGY
|
6.51%
|
WILLIAMS,
ND
|
COMPLETING
|
THREE
FORKS
|
|
LAZY
DE #34-7H
|
MARATHON OIL COMPANY
|
4.54%
|
DUNN,
ND
|
COMPLETING
|
BAKKEN
|
|
LIBERTY
#6-25H
|
EOG RESOURCES
|
11.88%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
LUNKER
FEDERAL #1-33-4H
|
SLAWSON
EXPLORATION
|
6.40%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
MAYHEM
#1-19H
|
SLAWSON EXPLORATION
|
30.00%
|
ROOSEVELT,
MT
|
COMPLETING
|
BAKKEN
|
|
MCD
#11-29H
|
FIDELITY
EXPLORATION
|
2.08%
|
MOUNTRAIL,
ND
|
DRILLING
|
THREE
FORKS
|
|
MEAGHER
#16-30
|
KODIAK
OIL & GAS
|
7.46%
|
SHERIDAN,
MT
|
DRILLING
|
RED
RIVER
|
|
MEIERS
#44-25H
|
WHITING
OIL & GAS
|
1.46%
|
MOUNTRAIL,
ND
|
DRILLING
|
BAKKEN
|
|
MELGAARD
#1-14H
|
CONTINENTAL RESOURCES
|
15.82%
|
DIVIDE,
ND
|
DRILLING
|
THREE
FORKS
|
|
MESA
VERDE #24-22H
|
BURLINGTON
RESOURCES
|
0.73%
|
MCKENZIE,
ND
|
DRILLING
|
BAKKEN
|
|
ROHDE
#43-1H
|
WHITING
OIL & GAS
|
10.26%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
RS-NELSON
FARMS A-156-90-2829H-1
|
HESS
CORP.
|
1.55%
|
MOUNTRAIL,
ND
|
DRILLING
|
DUAL
LATERAL
|
|
RS-JOHNSON
A-157-90-2128H-1
|
HESS
CORP.
|
19.88%
|
MOUNTRAIL,
ND
|
DRILLING
|
DUAL
LATERAL
|
|
RS-RUDOLPH
###-##-####H-1
|
HESS
CORP.
|
8.85%
|
MOUNTRAIL,
ND
|
DRILLING
|
DUAL
LATERAL
|
|
SAETZ
#14-20H
|
MARATHON
OIL COMPANY
|
2.45%
|
DUNN,
ND
|
COMPLETING
|
BAKKEN
|
|
SCHILKE
#8-24H
|
PEAK
GRASSLANDS, LLC.
|
5.24%
|
MCKENZIE,
ND
|
DRILLING
|
BAKKEN
|
|
SIDONIA
#7-25H
|
EOG
RESOURCES
|
10.00%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SIDONIA
#8-26H
|
EOG
RESOURCES
|
5.00%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SIDONIA
#13-08H
|
EOG
RESOURCES
|
2.03%
|
MOUNTRAIL,
ND
|
DRILLING
|
BAKKEN
|
|
SIDONIA
#29-34H
|
EOG
RESOURCES
|
4.22%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SIDONIA
#33-33H
|
EOG
RESOURCES
|
2.71%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SIDONIA
#34-31H
|
EOG
RESOURCES
|
2.16%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SNIPER
FEDERAL #1-6-7H
|
SLAWSON EXPLORATION
|
21.41%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
SUMMERFIELD
#15-15H
|
AMERICAN
OIL & GAS
|
5.10%
|
DUNN,
ND
|
COMPLETING
|
BAKKEN
|
|
TOMCAT
#1-2H
|
SLAWSON EXPLORATION
|
2.50%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
|
WHIRLWIND
#1-31H
|
SLAWSON EXPLORATION
|
19.74%
|
MOUNTRAIL,
ND
|
COMPLETING
|
BAKKEN
|
3
SAFE
HARBOR
This
report 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 the Company’s 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 the 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 the 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.
The
Company has based these forward-looking statements on its current expectations
and assumptions about future events. While the Company’s 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 the Company’s control.
A copy of
the press release which the Company issued reporting the foregoing information
is attached as Exhibit 99.1. The information in this Item 2.02, and
the press release attached hereto as Exhibit 99.1, shall be deemed to
be "filed" under the Securities Exchange Act of 1934, as amended.
4
SECTION
9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01
– Financial Statements and Exhibits
(d)
Exhibits.
|
Exhibit
Number
|
Description
|
|
|
99.1
|
Press
Release dated April 12, 2010
|
5
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
Date:
April 12, 2010
|
NORTHERN
OIL AND GAS, INC.
By/s/ Michael L. Reger
Michael
L. Reger, Chief Executive Officer
|
6
EXHIBIT
INDEX
|
Exhibit
Number
|
Title
of Document
|
Method
of Filing
|
||
|
99.1
|
Press
Release dated April 12, 2010
|
Filed
Electronically
|
7