Exploration & Production | Quarterly / Earnings Reports
Northern O&G Ramps Up Production to 13,900 BOE/d with 173 Wells
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Northern Oil and Gas, Inc. has reported a production and operations update for the quarter ended December 31, 2013.
Northern's fourth quarter 2013 production is expected to average approximately 13,900 barrels of oil equivalent (Boe) per day. This represents an increase of 28% compared to the fourth quarter of 2012, and a sequential increase of 6.5% compared to the third quarter of 2013. Total production for 2013 was approximately 4.47 million barrels of oil equivalent, an increase of approximately 19% compared to 2012.
During the fourth quarter of 2013, Northern added 173 gross (12.6 net) wells to production, with an additional 245 gross (15.2 net) wells that were drilling or awaiting completion as of December 31, 2013. During 2013, Northern added 531 gross (40.0 net) wells to production. As of December 31, 2013, Northern's total producing well count was 1,758 gross (146.2 net) wells.
Northern expects its fourth quarter 2013 realized price per barrel of oil equivalent, including the effect of settled derivatives (hedges), to be in a range of $74.50 - $75.00. The expected realized price per Boe reflects an approximate crude oil differential to WTI of $15.00 per barrel and an approximate $3.00 per barrel loss on settled crude oil derivatives during the quarter.
Northern expects its fourth quarter 2013 lease operating expense (LOE) per barrel of oil equivalent to be in a range of $8.75 - $9.00, a reduction of approximately 7% compared to the third quarter of 2013.
Northern's Chairman and Chief Executive Officer Michael Reger commented: "We experienced solid sequential production growth driven by strong activity levels during the fourth quarter. January drilling activity has remained brisk with approximately 190 active drilling rigs in North Dakota; however, completion activity has been slower given significant cold weather during the month."
