Attached files
| file | filename |
|---|---|
| 8-K - NORTHERN OIL AND GAS, INC. FORM 8-K APRIL 12, 2010 - NORTHERN OIL & GAS, INC. | form8k_04122010.htm |
Exhibit 99.1
Northern
Oil and Gas, Inc. Provides Operations and Increased Drilling Activity
Update
WAYZATA,
MINNESOTA --- April 12, 2010 --- Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)
(“Northern Oil”) today 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, Northern Oil also
provided information regarding its preliminary financial results for first
quarter 2010.
2010
DRILLING ACTIVITY
Since
January 1, 2010, Northern Oil 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.
Northern
Oil now expects to spud up to 18 net wells in 2010, which represents an increase
from previous guidance of 15 net wells. We believe 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. Northern Oil’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
Northern
Oil’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
Northern
Oil has experienced significant delays in fracture stimulation appointments for
wells across all operators with whom we participate. We believe this
trend has been driven primarily by seasonal issues and increased costs of
completing during the coldest winter months. Additionally, Northern
Oil believes there has been some constraint in moving fracture stimulation
supplies, such as frac sand, into the field due to seasonal
conditions. Northern Oil 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 we continue 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
Northern
Oil continues to believe that early 24 hour rates are not useful in determining
the economics of a well. Northern Oil is focused on well payout,
which, in our core Slawson Exploration drilling program, we expect to occur four
months on average following commencement of production. As
previously guided, Northern Oil 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
|
-
|
-
|
CURRENT DRILLING ACTIVITY
The
following table illustrates the wells in which Northern Oil has participated
that are drilling or are awaiting completion and have experienced completion
delays due to seasonal conditions as of April 11, 2010. Northern 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
|
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:
Investor
Relations
772-219-7525