Company Strategy
Northern Oil and Gas, Inc. controls one of the largest leasehold positions in the Bakken and Three Forks play.
Northern Oil is a non-operating participant in the North Dakota Bakken and Three Forks play. Northern’s participation in Bakken and Three Forks wells is proportionate to its leasehold interest in each drilling unit that is drilled by its operating partners. For example, if Northern controls leases on 160 acres in a 640-acre drilling unit—or 25% of the unit—Northern would participate for its proportionate 25% working interest in any well drilled in that unit.
As a non-operating (minority) working interest owner in a well, Northern does not bear all the operating and overhead costs of its operating (majority) partners, making it a low-cost producer in the Bakken and Three Forks play
Leaseholds
North Dakota/Montana Bakken and Three Forks
Northern Oil and Gas currently controls ~160,000 net mineral acres in the heart of the North Dakota/Montana Bakken and Three Forks play.
The U.S. Geological Survey assessment for the Bakken formation estimates recoverable volumes of between 3.5 and 5 billion barrels of oil, 1.85 trillion cubic feet of associated natural gas and 148 million barrels of natural gas liquids in the U.S. portion of the Bakken Formation.
According to the most recent study by the North Dakota Geological Survey and Department of Mineral Resources, the Three Forks Formation could yield an additional 2 billion barrels of oil, enhancing sustainability for the play over time.
The U.S. Geological Survey is currently conducting a new study of the entire North Dakota/Montana Bakken and Three Forks play.