Press Releases
Monday July 21, 2008
Source: Northern Oil & Gas, Inc.
Northern Oil and Gas, Inc. Announces Significant Bakken Discoveries, Three Forks/Sanish Plans, and Updates Accelerated 2008 Drilling Schedule and Capital Position
WAYZATA, MINNESOTA - July 21, 2008 - Northern Oil and Gas, Inc. (AMEX: NOG) ("Northern Oil") announced today it has recently participated in the successful completion of three wells in the emerging North Dakota Bakken play, bringing to eleven the total number of producing wells in which Northern holds an interest.
In addition, Northern holds a working interest in an additional fourteen wells that are in the drilling or completion stages and is included in nearly 70 permitted or docketed-for-permit drilling locations that are expected to drill between now and early 2009. Northern Oil controls approximately 60,000 net acres in the North Dakota Bakken play, yielding over 90 net well locations based on 640 acre drilling units. In addition, Northern controls approximately 22,000 net acres in Sheridan County, Montana and has successfully completed two wells to the Red River formation.
"Northern's first mover leasing advantage is yielding significant rewards for our stakeholders," said Northern Chief Executive Officer Michael Reger. "We continue to accelerate our participation in successful North Dakota Bakken development, providing solid production results. With over 70 permits pending, our net production should continue to grow at an increasing rate in the second half of the year."
The recently completed Johnson 33 #1H well operated by Brigham Exploration is representative of Northern's growing success in the North Dakota Bakken play. The well flowed at an early rate of 650 BOPD, with sustained production of approximately 560 BOPD. The Johnson well is located significantly north of the Parshall field, representing an important Northern extension of prolific Bakken production. Northern participated in the Johnson 33 #1H with a 16.5% Working Interest.
"With approximately 10,000 net acres near the successful Johnson 33 #1H well, Northern is well positioned to benefit from Brigham's important success," Reger said. "We expect to participate in a number of offset locations to the Johnson 33 well in the coming months." A complete review of current producing wells can be found at the conclusion of this release.
Northern is currently participating in Continental Resources' Skachenko 1-31H well in Dunn County, ND. The well is a direct offset to the Bice 1-29H, also drilled by Continental. The Bice well - announced in late May - is among the first Three Forks/Sanish discoveries in the region.
"Northern's first Three Forks/Sanish well is significant in that, if successful, it provides an additional opportunity to grow reserves and production in what we believe is another prolific oil resource within our leasehold position," Reger added.
On June 30, Northern called for conversion the balance of outstanding warrants issued in 2007 in conjunction with the company's private placement offering. As of today, all holders have exercised their warrants resulting in net proceeds to the company of approximately $14.5 Million.
"The conversion of the outstanding warrants provides an influx of capital that will allow us to comfortably accelerate our drilling program in the second half of the year," Reger said. "It also allows us to continue to opportunistically grow our leasehold position as we did last month with the acquisition of an additional 24,000 net acres in Dunn County, North Dakota, which was closed last week."
Northern's producing, drilling and permitted locations can be found in the table below.
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PRODUCING WELLS |
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STATE |
OPERATOR |
WELL NAME |
NOG WI |
COUNTY |
SECTION |
TOWNSHIP |
RANGE |
SPUD DATE |
IP |
|
ND |
BRIGHAM EXPLORATION |
BERGSTROM TRUST 26-1H |
6.25%/24% BIAPO |
MOUNTRAIL |
26 |
154 |
89 |
10/31/2007 |
250 |
|
ND |
BRIGHAM EXPLORATION |
HALLINGSTAD 27-1H |
8.5%/20% BIAPO |
MOUNTRAIL |
27 |
154 |
89 |
12/28/2007 |
450 |
|
MT |
BRIGHAM EXPLORATION |
RICHARDSON 25-1 |
37.00% |
SHERIDAN |
25 |
34 |
55 |
11/5/2007 |
275 |
|
MT |
BRIGHAM EXPLORATION |
RICHARDSON 30-1 |
12.5%/20% BIAPO |
SHERIDAN |
30 |
34 |
56 |
26-Apr |
175 |
|
ND |
BRIGHAM EXPLORATION |
JOHNSON 33-1H |
16.25% |
MOUNTRAIL |
33 |
158 |
91 |
1-May |
650 |
|
ND |
MUREX PETROLEUM |
RICK CLAIR 25-36H |
6.25% |
MOUNTRAIL |
36 |
155 |
91 |
15-Jan |
1400 |
|
ND |
MARATHON OIL COMPANY |
REISS 34-20H |
3.00% |
DUNN |
20 |
145 |
94 |
10/1/2007 |
600 |
|
ND |
MARATHON OIL COMPANY |
KENT CARLSON 24-36H |
6.25% |
DUNN |
36 |
146 |
95 |
1-Mar |
450 |
|
ND |
MARATHON OIL COMPANY |
VOIGT 11-15H |
1.00% |
DUNN |
15 |
146 |
93 |
1-Mar |
450 |
|
ND |
WHITING OIL & GAS |
BRAAFLAT 11-11H |
1.00% |
MOUNTRAIL |
11 |
153 |
91 |
1-Mar |
1600 |
|
ND |
SINCLAIR OIL |
NELSON 1-26H |
3.00% |
MOUNTRAIL |
26 |
155 |
90 |
1-May |
750 |
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DRILLING & PERMITTED WELLS |
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|
STATE |
OPERATOR |
WELL NAME |
NOG WI |
COUNTY |
SECTION |
TOWNSHIP |
RANGE |
SPUD DATE |
|
|
ND |
EOG RESOURCES |
WAYZETTA 1-13H |
6.25% |
MOUNTRAIL |
13 |
153 |
90 |
DRILLING |
|
|
ND |
EOG RESOURCES |
AUSTIN 19-30H |
5.00% |
MOUNTRAIL |
30 |
154 |
90 |
1-Aug |
|
|
ND |
EOG RESOURCES |
MODEL 1-05H |
3.00% |
MOUNTRAIL |
5 |
152 |
89 |
TBD |
|
|
ND |
EOG RESOURCES |
MODEL 2-08H |
3.00% |
MOUNTRAIL |
8 |
152 |
89 |
TBD |
|
|
ND |
EOG RESOURCES |
MODEL 4-19H |
3.00% |
MOUNTRAIL |
19 |
152 |
89 |
TBD |
|
|
ND |
EOG RESOURCES |
RUUD 1-18H |
3.00% |
MOUNTRAIL |
18 |
152 |
89 |
TBD |
|
|
ND |
EOG RESOURCES |
AUSTIN 23-32H |
3.00% |
MOUNTRAIL |
32 |
154 |
90 |
TBD |
|
|
ND |
EOG RESOURCES |
SHELL 1-08H |
3.00% |
MOUNTRAIL |
8 |
153 |
89 |
TBD |
|
|
ND |
EOG RESOURCES |
AUSTIN 3-4H |
1.00% |
MOUNTRAIL |
4 |
154 |
90 |
TBD |
|
|
ND |
EOG RESOURCES |
PARSHALL 12-27H |
2.00% |
MOUNTRAIL |
27 |
152 |
90 |
TBD |
|
|
ND |
EOG RESOURCES |
PARSHALL 11-28H |
2.00% |
MOUNTRAIL |
28 |
152 |
90 |
DRILLING |
|
|
ND |
EOG RESOURCES |
MODEL 1-09H |
3.00% |
MOUNTRAIL |
9 |
152 |
89 |
TBD |
|
|
ND |
WHITING OIL & GAS |
FEDERAL 11-9H |
1.00% |
MOUNTRAIL |
9 |
153 |
91 |
1-Aug |
|
|
ND |
SLAWSON EXPLORATION |
BANDIT 1-29H |
27.00% |
MOUNTRAIL |
29 |
152 |
91 |
1-Aug |
|
|
ND |
SLAWSON EXPLORATION |
PEACEMAKER 1-8H |
15.00% |
MOUNTRAIL |
8 |
152 |
91 |
1-Aug |
|
|
ND |
SLAWSON EXPLORATION |
PATHFINDER 1-9H |
3.00% |
MOUNTRAIL |
9 |
152 |
91 |
COMPLETING |
|
|
ND |
SLAWSON EXPLORATION |
PROWLER 1-16H |
5.00% |
MOUNTRAIL |
16 |
152 |
91 |
DRILLING |
|
|
ND |
SLAWSON EXPLORATION |
HEDGEHOG 1-6H |
5.00% |
MOUNTRAIL |
6 |
151 |
89 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
TOMCAT 1-2H |
5.00% |
MOUNTRAIL |
2 |
151 |
90 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
SENTRY 10-1H |
5.00% |
MOUNTRAIL |
14 |
151 |
90 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
NIGHTCRAWLER 1-17H |
5.00% |
MOUNTRAIL |
17 |
152 |
91 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
PAYARA 1-21H |
5.00% |
MOUNTRAIL |
21 |
152 |
91 |
COMPLETING |
|
|
ND |
SLAWSON EXPLORATION |
VOYAGER 1-28H |
5.00% |
MOUNTRAIL |
21 |
152 |
91 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
POLARIS 1-21H |
5.00% |
MOUNTRAIL |
21 |
157 |
91 |
TBD |
|
|
ND |
SLAWSON EXPLORATION |
PANTHER 1-29H |
7.50% |
MOUNTRAIL |
29 |
158 |
91 |
TBD |
|
|
ND |
BRIGHAM EXPLORATION |
AFSETH 34-1H |
6.25% |
MOUNTRAIL |
34 |
158 |
91 |
1-Oct |
|
|
ND |
BRIGHAM EXPLORATION |
HALLINGSTAD 35-1H |
15.00% |
MOUNTRAIL |
35 |
154 |
89 |
1-Nov |
|
|
ND |
BURLINGTON RESOURCES |
BONNEY 34-3H |
3.00% |
DUNN |
3 |
145 |
96 |
COMPLETING |
|
|
ND |
WINDSOR ENERGY |
WOLF 1-4H |
16.00% |
MOUNTRAIL |
4 |
151 |
92 |
1-Sep |
|
|
ND |
TRACKER RESOURCES |
KNUTSON #4-1H |
8.00% |
DUNN |
4 |
143 |
94 |
TBD |
|
|
ND |
XTO - HEADINGTON |
SMOUSE 41-28 |
30.00% |
MOUNTRAIL |
28 |
155 |
96 |
TBD |
|
|
ND |
ENCORE OPERATING |
ROLFSON 14-33H |
5.00% |
MCKENZIE |
4 |
150 |
98 |
TBD |
|
|
ND |
SAMSON OIL |
GUSTAFSON 29-161-92H |
25.00% |
BURKE |
29 |
161 |
92 |
1-Aug |
|
|
ND |
MUREX PETROLEUM |
CHAD ALLEN 25-36H |
6.25% |
MOUNTRAIL |
25 |
155 |
91 |
TBD |
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|
MT |
CRUSADER ENERGY |
OILERS 1H-10 |
7.50% |
RICHLAND |
10 |
21 |
59 |
1-Sep |
|
|
ND |
MARATHON OIL COMPANY |
CLIVE PELTON 34-23H |
3.00% |
DUNN |
23 |
146 |
93 |
DRILLING |
|
|
ND |
MARATHON OIL COMPANY |
ECKELBERG 41-26H |
3.00% |
DUNN |
26 |
146 |
93 |
COMPLETING |
|
|
ND |
MARATHON OIL COMPANY |
KENT CARLSON 14-36H |
6.25% |
DUNN |
36 |
14 |
95 |
TBD |
|
|
ND |
MARATHON OIL COMPANY |
KOVAOFF 21-17H |
2.00% |
DUNN |
17 |
144 |
95 |
TBD |
|
|
ND |
MARATHON OIL COMPANY |
SHOBE 24-20H |
7.50% |
MOUNTRAIL |
20 |
151 |
93 |
TBD |
|
|
ND |
MARATHON OIL COMPANY |
STROMMEN 14-8H |
3.00% |
DUNN |
8 |
145 |
94 |
15-Aug |
|
|
ND |
CONTINENTAL RESOURCES |
SKACHENKO 1-31H |
6.25% |
DUNN |
31 |
146 |
95 |
DRILLING |
|
|
ND |
CONTINENTAL RESOURCES |
ELVEIDA 1-33H |
10.00% |
DIVIDE |
33 |
161 |
95 |
DRILLING |
|
|
ND |
CONTINENTAL RESOURCES |
ARVID 1-34H |
6.25% |
DIVIDE |
34 |
161 |
95 |
DRILLING |
|
|
ND |
CONTINENTAL RESOURCES |
SHONNA 1-15H |
15.00% |
DIVIDE |
15 |
161 |
95 |
TBD |
|
|
ND |
CONTINENTAL RESOURCES |
ELLS 1-6H |
12.50% |
DIVIDE |
6 |
161 |
95 |
TBD |
|
|
ND |
CONTINENTAL RESOURCES |
VIOLA 1-7H |
7.50% |
DIVIDE |
7 |
160 |
95 |
TBD |
|
|
ND |
CONTINENTAL RESOURCES |
ROSSOW 1-10H |
10.00% |
DIVIDE |
10 |
161 |
95 |
TBD |
|
|
ND |
ST. MARY |
S.M. CLARK 4-6H |
2.00% |
MOUNTRAIL |
6 |
158 |
91 |
TBD |
|
|
ND |
HESS CORPORATION |
EN-HYNEK-0112H-1 |
12.50% |
MOUNTRAIL |
1 |
155 |
93 |
TBD |
|
|
ND |
HESS CORPORATION |
EN-NESET-0706H-1 |
3.00% |
MOUNTRAIL |
7 |
156 |
94 |
DRILLING |
|
|
ND |
HESS CORPORATION |
EN-PERSON-1102H-1 |
12.50% |
MOUNTRAIL |
11 |
156 |
94 |
DRILLING |
|
|
ND |
HESS CORPORATION |
RS-AGRIBANK-1102H-1 |
7.50% |
MOUNTRAIL |
11 |
157 |
91 |
DRILLING |
|
|
MT |
KODIAK OIL & GAS |
MEAGHER 16-30 |
8.50% |
SHERIDAN |
30 |
34 |
58 |
TBD |
|
|
MT |
KODIAK OIL & GAS |
BONEYARD 13-20 |
8.50% |
SHERIDAN |
20 |
34 |
58 |
TBD |
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About Northern Oil and Gas, Inc.:
Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota. Our core area of focus is the Williston Basin, specifically the Mountrail County, North Dakota area Bakken play where the company controls approximately 60,000 net mineral acres. Northern Oil's secondary objective is conventional, 3D driven, oil and gas exploration and development throughout the Rocky Mountain region.
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, industry conditions, and indebtedness covenant compliance 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:
Michael Reger
CEO
Ryan Gilbertson
CFO
Phone: 952-476-9800
Fax: 952-476-9801
www.NorthernOil.com
