Exploration & Production | Quarterly / Earnings Reports | Production | Third Quarter (3Q) Update | Forecast - Production

Whiting 'Confident' on 2014 Outlook Despite Pullback in Oil Prices

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Whiting Petroleum Corporation's production in the third quarter of 2014 totaled a record 10.7 million barrels of oil equivalent (MMBOE), of which 88% was crude oil and natural gas liquids (NGLs). The production total equates to an average production rate of 116,675 barrels of oil equivalent per day (BOE/d), representing a sequential increase of 6% over the second quarter 2014 average of 109,760 BOE/d. With our record production, we generated discretionary cash flow of $538.2 million for the quarter.

James J. Volker, Whiting's Chairman, President and CEO, commented, "Whiting continues to lead the way in implementing new technologies to enhance productivity and recovery rates in the Williston Basin. We are systematically honing the best completion designs in our different areas of operations. At our Sanish field, the Brehm 13-7H was completed in the Middle Bakken formation using a slickwater frac design flowing 3,770 BOE/d. Adjusted for lateral length, it is one of the most productive wells we have drilled in this prolific asset. We also continue to enhance our plug-and-perf completion technology with multiple frac clusters. At Hidden Bench, our four-well Sovig pad achieved an average initial production rate of 3,278 BOE/d per well. All the new producers were completed with five perf clusters per stage versus our prior design of three perf clusters.

"At Redtail, we are seeing exciting results from our initial drilling in the Niobrara "C" zone and the Codell/Fort Hays formation. The Razor 25B-2549 in our Redtail field achieved a recent ten-day average rate of 712 BOE/d in the Niobrara "C" zone. The Razor 25B-2551 was completed in the Codell/Fort Hays formation and achieved a recent ten-day average rate of 570 BOE/d. Our mapping of the Codell/Fort Hays formation indicates it is prospective over approximately half of our Redtail acreage. We believe these favorable results will add significantly to our inventory of wells at our Redtail field.

"Despite the recent pullback in oil prices, we remain confident in our outlook for continued strong growth in our production and reserves. We believe our efficient operations and leadership in the implementation of new completion technologies enhances the capital productivity of our asset base helping to offset the impact of lower prices. Also, Whiting has been proactive in rationalizing its portfolio to build a strong balance sheet and liquidity position. In conjunction with the pending Kodiak acquisition, we have arranged $3.5 billion of bank commitments under our credit facility. In addition, Whiting continues to review its asset base for further liquidity enhancements. In the last 15 months, Whiting has generated $1.1 billion of liquidity through asset sales."

Operational Highlights

The company has updated its operations for the third quarter of 2014, which can be accessed below:

Whiting: Slickwater Fracs Strengthen Bakken Well Results

Whiting to Boost Niobrara Rig Count by Two by 2Q15

Operated Drilling Rig Count

As of October 15, 2014, 19 operated drilling rigs were active on our properties. The breakdown of our operated rigs was as follows:

Outlook for 4Q and Full-Year 2014

The following table provides guidance for the fourth quarter and full-year 2014 based on current forecasts, including Whiting's full-year 2014 capital budget of $2.8 billion. This guidance does not reflect the Kodiak Oil & Gas acquisition, which is expected to close in December 2014.