Northern Oil saw production numbers increase in Q4 of 2013 by 28%, bringing estimated boe/d to ~13,900. Total production for the entire year was 4.47 mmboe.
The company estimates their realized price for a barrel of oil equivalent (boe) will be between $74.00 - $75.00.
Northern Bakken Production Growing and Costs Decreasing
Northern Oil continues to experience a growing trend in the Bakken, with its Q4 LOE (lease operating expense) down by ~7% from ~8.40 per boe in Q3.
The company's growth pattern is leveling off slightly in the Bakken from its excpetional rate in 2012, when the company grew production by 95%.
“We experienced solid sequential production growth driven by strong activity levels during the fourth quarter,” said Northern’s CEO Michael Reger.”
n 2013, Northern Oil added 531 gross (40 net) wells to production. At the end of the year, the total well count for the company stood at 1,758 gross (146.2 net) wells.
Growth Concurrent with Strategic Company Decisions
Growth in 2013 was also concurrent with major strategic decisions for Northern Oil. In Q3 of 2013, the company re-purchased more than two million shares of its common stock.
Read more: Northern Oil and Gas Repurchases Stock - Grows Bakken 20%
Weather Slowing Production at Beginning of 2014
Inclimate weather in the Bakken at the beginning of this year has had an impact on production, but Northern claims it's drilling operations are robust, with 190 active drilling rigs in North Dakota.
“CEO Micheal Reger said, “completion activity has been slower given significant cold weather during the month.”
Northern also saw slows in production in 2013 due to poor weather conditions in the first quarter of 2013.
Read more: Northern Oil and Gas Bakken Production Growth Slowed - Weather
Northern Highlights for 2013
- Q4 2013 Bakken production up 28% to ~13,900 boe/d
- Total production was 4.47 mmboe
- 531 gross (40 net) wells added to production
- Company total well count at 1,758 gross (146.2 net) by end of year
- Q4 LOE (lease operating expense) down by ~7% from ~8.40 per boe in Q3
- Q4 2013 realized price of boe estimated at ~74.00 - ~75.0
