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Northern Oil & Gas (NOG) gave a 2011 update on the Bakken Shale today.
2011 DRILLING AND PRODUCTION GUIDANCE
As of March 1, 2011, Northern Oil controlled 147,407 net acres in the Williston Basin targeting the Bakken and Three Forks formations and owned working interests in 337 successful discoveries, consisting of 332 targeting the Bakken and Three Forks formations and five targeting Red River structures. Northern Oil is currently participating in 136 gross (13.32 net) Bakken or Three Forks wells drilling, awaiting completion or completing.
Northern Oil expects to spud approximately 10.6 net wells in the first quarter of 2011, and reaffirms its previous guidance of 36 net wells expected to be spud during 2011. Northern Oil reaffirms its guidance to produce an average of 6,500 barrels of oil equivalent per day ("BOEPD") in 2011.
Northern Oil continues to develop its core Bakken and Three Forks acreage position at an accelerating pace. According to the North Dakota Industrial Commission, approximately 168 rigs are currently drilling in the North Dakota Bakken and Three Forks plays, up from approximately 99 rigs drilling last year at this time. The significant rig increase in the play continues to accelerate the development of Northern Oil's core acreage position.
In 2010, Northern Oil acquired leasehold interests covering an aggregate of 56,858 net mineral acres for an average of $1,043 per net acre in its key prospect areas. In the fourth quarter of 2010, Northern Oil acquired approximately 18,029 net mineral acres for an average of $954 per net acre in all of its key prospect areas in the form of both effective leases and top-leases spanning across the counties of Billings, Burke, Divide, Dunn, Golden Valley, McKenzie, Mountrail, Stark and Williams, North Dakota and Richland and Roosevelt, Montana.
During the first quarter of 2011 through March 1, 2011, Northern Oil has acquired 7,191 net acres at an average price of $1,956 per acre. As of March 1, 2011, Northern Oil had 23,279 net developed acres and 11,596 net acres under the bit, which represents approximately 24% of Northern Oil's total Bakken and Three Forks position.
Northern Oil's current Bakken and Three Forks prospective acreage position will allow it to drill approximately 921 net wells based on six net wells per 960-acre average spacing unit.