Northern O&G provided an operations update related to drilling and completion activity in the Williston Basin Bakken and Three Forks play. In connection with this operations update, Northern Oil also provided information regarding its preliminary financial results for first quarter 2010.

2010 DRILLING ACTIVITY Since January 1, 2010, Northern Oil has spud 5.15 net wells. Of those wells, 1.76 net wells are currently drilling but have not reached total depth and 2.05 net wells have been drilled to total depth and are awaiting fracture stimulation to commence production. This high number of wells awaiting completion was caused by longer time delays from completion of drilling to commencement of oil sales, primarily due to the seasonal backlog of fracture stimulations that typically occurs in early spring as a result of reduced completion activities during the coldest months in North Dakota.

Northern Oil now expects to spud up to 18 net wells in 2010, which represents an increase from previous guidance of 15 net wells. We believe the increase in expected wells is based upon the increasing rig count, which is now at an all-time high of 108 drillings rigs in the North Dakota Bakken play. Northern Oil's Chief Executive Officer, Michael Reger, commented, "The pace of drilling in the Bakken and Three Forks plays continues to increase. Given recent announcements by key operators in the plays, we expect 2010 drilling to increase by up to 20% to a total of 18 net Bakken and Three Forks wells."

Tags: Northern Oil and Gas