Northern Oil and Gas, Inc. (ticker: NOG) reported a cumulative production of 1,196,924 BOE, at an average rate of 13,299 BOEPD during Q1, 2017 out of its Williston acreage, where it holds approximately 155,000 net acres.
Source: Northern Oil and Gas
Through the remainder of 2017, the company believes it will add 12 net wells to its production on a capital budget of $102.2 million. In its prediction of well additions, the company believes the majority of the wells will be added during the second half of 2017.
Through Q1, 2017 the company spent approximately $27.3 million in capital costs. Of that, $26.5 million was spent on drilling, completions, and workover activities. Acreage expenditures made up approximately $400,000. The remaining $400,000 was spent on various other capital expenses.
Northern added 4.5 wells to its process inventory, with two of its process inventory wells coming onto production, leaving 15.9 wells in process as of the end of the first quarter. The company believes that it will begin lowering the number of wells in its process inventory following Q1, as operators begin increasing completion activities.
Drilling locations rise with price
Northern indicated that it predicts approximately 325 net drilling locations, based on $50 WTI prices. As the price rises by increments of ten dollars to $60, $70, or $80 per barrel, the number of net predicted potential well locations rises to 466, 557, and 607; respectively
Enhanced completions
In the 2016 well additions, Northern saw an increase 59% growth in type curve results over the 2015 production. Northern attributed this to enhanced completions, wherein the company used upwards of 10 million pounds of proppant per well. The company’s producing wells from Q1, 2017 averaged a 30-day initial production rate of 1,485 BOEPD, which was 34% greater than the 30-day averages in the 2016 wells. These improvements were also attributed to the use of enhanced completions in newly completed wells.
Northern Oil and Gas, Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22
Northern Oil and Gas will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
