Whiting's Proven Oil-Equivalent Reserves Up About a Third in 2014

Reuters

Dec 22 (Reuters) - Whiting Petroleum Corp said on Monday its proven reserves of oil equivalent have jumped nearly a third over the past year, thanks largely to its buyout earlier this month of rival Kodiak Oil & Gas.

The deal, which made Whiting the largest North Dakota oil producer, lifted the company's proven reserves to 780 million barrels of oil equivalent, more than two-thirds of which is comprised of crude oil. The numbers for both years factor in Kodiak's reserves, Whiting said in a statement.

As part of the deal, Whiting acquired Kodiak's proven reserves of roughly 167 million barrels of oil equivalent for $23.77 per barrel. That is far below the current benchmark price for American crude oil, about $56 per barrel, boosting the economics of the deal.

Whiting also boosted a revolving credit facility to $3.5 billion from $2.5 billion. The increase is likely designed to help the company pay down expected Kodiak bond puts of $1.55 billion.

Whiting said it expects to release its 2015 capital spending plan by next February, citing "volatile oil prices."

(Reporting by Ernest Scheyder; Editing by Bernadette Baum)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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