Northern Oil and Gas (NOG) issued an operational update on the company’s oil and gas activities in the Bakken formation, along with details on the company’s 2012 capital budget.
Northern Oil and Gas acquired 7,600 net acres of leasehold during the fourth quarter of 2011 at a cost of $19 million ($2,500 per acre), and increasing its total position to 160,000 net acres in the Williston Basin.
Northern Oil and Gas spud eleven net wells through 12/12/2011, bringing the company’s total for 2011 to 37 net wells. The company expects to spud 40 wells in 2011.
Northern Oil and Gas expects to exit 2011 with production of approximately 10,000 barrels of oil equivalent (BOE) per day.
Northern Oil and Gas set a $325 million capital budget for 2012 and plans to spud 44 net wells during the year. The company estimates that the average gross cost to drill and complete a well in the Bakken will be $7.4 million in 2012. This is an increase from 2011 due to longer laterals and additional frac stages on wells.