Northern Oil & Gas Will Add Bakken Wells

Northern Oil and Gas will ramp up activity in the Bakken Shale in 2017.

Related: Continental Plans 26% Growth for Bakken

In a recent press release, Northern executives announced a 2017 capital budget of $102.2 million. The company will drill 12 new wells in the Bakken Shale during 2017 and expects total annual production to equal or exceed 2016.

Fourth Quarter and Full Year Highlights

  • Q4 Net loss was $12.3 million ($172.3 million in Q4 2015)
  • 2016 net loss of $293.5 million ($975.4 million in 2015)
  • Average 90-day initial production rate increased 47% in 2016
  • Completed $8.9 million property acquisition in the Q4 
  • 2016 capital expenditures totaled $75.6 million (41.3% decrease over 2015)
  • Q4 production totaled 1,259,274 barrels of oil equivalent ("Boe") 
  • End of year: $212.5 million of liquidity
We continue to see an increase in deal flow kind of coming in smaller package sizes like that, so we’ll continue to stay aggressively in the market doing that. With the liquidity, I think you’ll see us pretty much ramp up with respect to the activity, I guess, in the Bakken. When you take a look at our large acreage position of over 154,000 net acres, it’s a good acreage position located in great parts of the basin.
— Tom Stoelk, Interim CEO and Chief Financial Officer

Bakken Producers Announce 2017 Plans

  • ExxonMobil Corporation said it would shift its focus to U.S. shale drilling for the remainder of 2017
  • Continental 70% of Continental’s 2017 budget will be used to complete wells in the Bakken at a cost of $550 million
  • Hess Corp will add additional rigs in the Bakken and predicts the region's net production will average between 95,000 and 105,000 boepd.