Northern Oil and Gas, Inc. announced the successful completion of its fifth horizontal Bakken discovery in the growing North Dakota oil play. The company participated in the successful completion of the Kent Carlson 24-26H as a horizontal Bakken producer in Dunn County. The well was operated by Marathon Oil and Northern participated with a 6.25% working interest. This well is Northern's second successful Bakken discovery with Marathon. In addition, the Rick Clair 25-36H discovery was recently completed on Northern acreage by Murex Petroleum in Mountrail County. Northern controls a 6.25% interest in the Murex drilling unit. Previously announced were 2 successful Mountrail County Bakken discoveries (6.25% & 8.5% WI) and a Montana Red River discovery (37% WI) operated by Brigham Exploration. These discoveries bring Northern's net production to approximately 200 barrels per day with development of less than 1% of the Company's acreage position.
Northern is currently participating in 3 additional Bakken wells and its acreage has been included in approximately 30 additional wells permitted to be drilled in 2008. Based on currently permitted wells, Northern expects to participate in approximately 40 gross/3 net wells in 2008. Total Bakken drilling cap-ex will be approximately $11 million, including approximately $2 million for wells started in late 2007. Conventional drilling cap-ex, including Red River and Mission Canyon objectives, will be approximately $1 million. Northern expects to spend an additional $5 million on acreage acquisitions in 2008.
"Northern's streamlined cost structure and non-operating model has proven to be an excellent fit with the rapidly expanding North Dakota Bakken play," said Michael Reger, Chairman and Chief Executive Officer of Northern Oil & Gas. "The increasing speed at which our operating partners are drilling our lower working interest wells gives us invaluable operational knowledge going forward as we prepare to develop our higher working interest wells." Reger added, "Northern controls approximately 25 high working interest well units in close proximity to current development, providing an extensive inventory of drilling locations to be permitted in 2009 and beyond."
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