Northern Oil & Gas Repuchases Stock - Grows Bakken Production 20%

December 4, 2013 R.T. Dukes

Northern Oil & Gas bought back more than two million shares of its common stock in the third quarter and grew production 20% over the second quarter to 13,049 boe/d.

The company participated in bringing 147 gross (12.1 net) wells to production in the third quarter and has participated in 358 gross (27.3 net) wells year-to-date. Approximately 260 gross (18.8 net) wells are in some stage of drilling or completion.

Read more from earlier in the year: Northern's Bakken Production Growth Slowed by Bad Weather

At the end of September, the company spent an average (AFE) of $9 million on each well.

“October activity was also very encouraging and we are in a great position to continue to execute our business plan into 2014 and beyond.”

— Michael Reger, CEO

Northern Continues Leasing Bakken Acreage

Northern Oil & Gas acquired leases on 7,357 net mineral acres during the third quarter at a cost of $10.8 million ($1,462/acre) and now controls ~187,000 net acres prospective for the Bakken and Three Forks. The company has spent a total of $22.6 million on acreage in the first nine months of the year.

Approximately 61% of the company's acreage position is held-by-production.

Northern Oil & Gas' Bakken Production Growth Slowed - Weather

April 18, 2013 R.T. Dukes

Northern Oil & Gas saw its Bakken production growth rate slow in the first quarter of 2013. Weather related issues kept the company from completing as many wells as it had hoped.

Production in the first quarter of 2013 averaged 11,100 boe/d or 30% more than Q1 2012 and 2% more than Q4 2012. The company added 128 gross (9.6 net) wells during the quarter. Northern has now participated in 1,355 gross (115.8 net) wells and an additional 152 gross (12.2 net) are drilling or waiting to be completed.

“Despite adverse weather conditions in the first quarter, which negatively impacted production and lowered the number of well completions, we were able to increase our average daily production and add nearly ten net wells to producing status.”

— Northern`s CEO Michael Reger

Averaged realized oil prices are expected to average $82-83 per barrel and lease operating expenses (LOE) are expected to average $8.50-9 per barrel.

Northern Oil & Gas Grew Bakken Production 95% in 2012

March 13, 2013 R.T. Dukes

Northern Oil & Gas had an exceptional year in the Bakken. The company grew production 95% or from just under 2 million boe in 2011 to 3.76 million boe in 2012. That equates to daily production of more than 10,000 boe/d in 2012. Production growth was the result of Northern participating in the drilling of 42.8 net wells and bringing 48.3 net wells to production at a cost of $485 million.

Michael Reger, CEO, commented: "2012 was a year of operational transition in the Williston Basin. Throughout the year, drilling costs peaked and abated, wellhead price differentials peaked and subsequently improved to some of the play`s best levels and operators began the transition to pad drilling.

Bakken reserves grew 44% to 67.6 million boe in 2012. Approximately 55% are classified as proved and undeveloped

The company realized an average oil price differential of $9.79 per barrel in 2012, which compares to $6.30 in 2011. Differentials are expected to trend lower in 2013 as WTI prices trade lower than current Bakken markets that can be reached by rail on the East Coast and West Coast.

[ic-r]Northern held approximately 179,131 net acres in the Williston Basin as of year-end 2012. That total grew during the year as the company spent $37 million acquiring acreage:

17,590 net mineral acres at a cost of $1,788 per acre- $31.5 million
3,404 net mineral acres at a cost of $1,082 per acre - $3.7 million
As well as earning 6,450 net acres through farm-ins.

An estimated 64% of the company's acreage is held by production.

2013 Bakken Capital Budget

Northern plans to spend between $420-440 million in 2013. Approximately $370-390 will be spent on drilling and completing wells and an estimated $20 million will be spent on acreage acquisitions. Plans call for the drilling and completion of 44 net Bakken and Three Forks wells.

Production is expected to grow 3,000 boe/d to 4.7-5 million boe for the year. The benefits of multi-pad drilling are expected to be realized in the second half of 2013.