UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K
 

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  March 28, 2011
 

 
NORTHERN OIL AND GAS, INC.
(Exact name of Registrant as specified in its charter)
 
Minnesota
001-33999
95-3848122
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

315 Manitoba Avenue – Suite 200
Wayzata, Minnesota
55391
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code   ( 952) 476-9800
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
 
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


 
 

 
 
SECTION 2 – FINANCIAL INFORMATION
 

Item 7.01 – Regulation FD Disclosure.

On   March 28, 2011, we issued a press release updating certain operational items regarding our business as of March 28, 2011.   A copy the press release is attached hereto as Exhibit 99.1.

Our management will present at the Howard Weil 39 th Annual Energy Conference in New Orleans, Louisiana on Tuesday, March 29, 2011, at 11:35 am Central Time.  A copy of our presentation is attached hereto as Exhibit 99.2.


SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
 
Item 9.01 – Financial Statements and Exhibits
 
(d) Exhibits.
 
Exhibit
Number
 
Description
99.1
 
Press Release dated March 28, 2011
99.2
 
Company presentation for the Howard Weil 39 th Annual Energy Conference

 
1

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 28, 2011
NORTHERN OIL AND GAS, INC.
     
     
 
By
/s/ Michael L. Reger
   
Michael L. Reger, Chief Executive Officer

 
2

 
 
EXHIBIT INDEX

Exhibit
Number
 
Title of Document
 
Method of Filing
 
Press Release dated March 28, 2011
 
Filed Electronically
 
Company presentation for the Howard Weil 39 th Annual Energy Conference
 
Filed Electronically

 
3


Exhibit 99.1

Northern Oil and Gas, Inc. Provides Operations Update and
Increases Drilling and Production Guidance

 
WAYZATA, MINNESOTA — March 28, 2011 — Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) ("Northern Oil") today provided an operations update related to acreage and drilling activity in the Williston Basin Bakken and Three Forks play.

2011 ACREAGE ACQUISITIONS

During the first quarter of 2011 through March 28, 2011, Northern Oil has acquired leasehold interests of approximately 11,100 net mineral acres for an average of $1,540 per net acre in its core Bakken and Three Forks prospect areas of North Dakota and Montana. All acreage acquisitions year-to-date were consistent with Northern Oil’s strategic non-operated business model.

Northern Oil controls 151,327 net acres targeting the Bakken and Three Forks prospects as of March 28, 2011.  This acreage position will allow Northern Oil to participate in approximately 709 net wells assuming six wells per 1280-acre spacing unit.

INCREASED 2011 DRILLING GUIDANCE

Due to accelerating drilling activity and key acreage acquisitions, Northern Oil has spud approximately 9.8 net wells in the first quarter of 2011 year-to-date and now expects to spud approximately 40 net wells during 2011, which represents an increase from previous guidance of 36 net wells.

As of March 28, 2011, Northern Oil has participated with a working interest in 343 successful Bakken or Three Forks discoveries.  Northern Oil is currently participating in 141 gross (14.17 net) additional Bakken or Three Forks wells drilling, awaiting completion or completing.  Northern Oil maintains a 100% success rate in the Bakken and Three Forks play.
 
According to the North Dakota Industrial Commission, approximately 173 rigs are currently drilling in the North Dakota Bakken and Three Forks play, representing a new record.  The significant rig increase over the past year is driving the continued acceleration of the development of Northern Oil’s core acreage position.

Slawson Exploration, Northern Oil’s operating partner in the Windsor prospect in southern Mountrail County, North Dakota, has commenced the second well in each spacing unit of that prospect.  Downspacing in the Windsor prospect to six wells per spacing unit has been approved by the North Dakota Industrial Commission.  Slawson Exploration has recently contracted 1.5 dedicated frac crews, which we expect will materially shorten the spud-to-sales timeline in this highly productive prospect.  Northern Oil is Slawson’s largest working interest partner in the prospect.
 
INCREASED 2011 PRODUCTION GUIDANCE

Based on recent drilling activity and continued accelerated development of Northern Oil’s acreage, Northern Oil currently expects daily production to average 6,500 to 7,100 barrels of oil equivalent (“BOE”) during calendar year 2011.

 
1

 

2011 CAPITAL EXPENDITURES

Northern Oil now expects to spend approximately $252 million in drilling capital expenditures during 2011, which represents an increase from previous guidance of $227 million.  Northern Oil currently expects to participate in wells during 2011 at an average completed cost of $6.3 million per well.  Based on acreage acquired in the first quarter of 2011 through March 28, Northern Oil expects to continue deploying additional capital toward strategic acreage acquisitions throughout the remainder of 2011.  Northern Oil currently expects to fund all 2011 drilling commitments and anticipated acreage acquisitions using cash-on-hand of approximately $125 million, 2011 cash flow and its currently undrawn $100 million credit facility.

2011 DEPLETION, DEPRECIATION AMORTIZATION AND ACCRETION

For the fiscal year ending December 31, 2010, Northern Oil’s depletion, depreciation, amortization and accretion expense (“DD&A”) on a per BOE basis was $19.22.  For comparison purposes, based on information provided in their respective annual reports on Form 10-K for the fiscal year ending December 31, 2010, Kodiak Oil and Gas reported a DD&A expense of approximately $18 per BOE, Oasis Petroleum reported a DD&A expense of $19.91 per BOE and Brigham Exploration’s DD&A expense calculates to approximately $20.47 per BOE.  As such, Northern Oil’s 2010 DD&A expense was in the mid-range of its peer group in the Bakken and Three Forks play.  Northern Oil anticipates its DD&A expense for the fiscal year 2011 to remain in-line with this peer group.

MANAGEMENT COMMENT
 
Michael Reger, Chairman and Chief Executive Officer, commented, “We are very encouraged by the continuing pace of acreage acquisitions and the development of our substantial Bakken and Three Forks position thus far in 2011.  We continue to leverage our franchise value in the North Dakota Bakken play to expand our footprint and convert acreage to production.  We have converted approximately 25% of our acreage to production or under the bit and expect to end the year at approximately 50%, on pace to hold virtually all of our current position by production through 2013.” Reger continued, “We adamantly reaffirm our confidence in our depletion calculation and reiterate that we are in the mid-range of our peer group in the Williston Basin Bakken and Three Forks play.”
 
 
RECENT COMPLETION HIGHLIGHTS
 
The following table illustrates first quarter 2011 completions in which Northern Oil has participated with a working interest.
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
IP/BOEPD *
JEANIE 25-36 #2H
 
URSA
 
MCKENZIE, ND
 
54.58%
 
1,185
HOVDEN FEDERAL #1-20H
 
SINCLAIR
 
DUNN, ND
 
45.72%
 
1,325
BORSETH #15-22 1H
 
URSA
 
MCKENZIE, ND
 
39.55%
 
2,015
BANDIT #2-29H
 
SLAWSON
 
MOUNTRAIL, ND
 
26.25%
 
959
NIELSEN #1-12H
 
CONTINENTAL
 
DIVIDE, ND
 
24.25%
 
857
VONA #1-13H
 
CONTINENTAL
 
DIVIDE, ND
 
20.31%
 
921
ERNEST SCHARCHENKO #34-33H
 
MARATHON
 
DUNN, ND
 
17.57%
 
400
MUSKRAT FEDERAL #1-28-33H
 
SLAWSON
 
MOUNTRAIL, ND
 
12.83%
 
1,453
ZI PAYETTE #10-15H
 
ZENERGY
 
MCKENZIE, ND
 
12.50%
 
1,323
HOLTE #1-32H
 
CONTINENTAL
 
WILLIAMS, ND
 
12.50%
 
933
GEORGE TANK #151-96-10C-3-3H
 
PETRO HUNT
 
MCKENZIE, ND
 
12.35%
 
902
ALMER 31X-6
 
XTO
 
WILLIAMS, ND
 
11.14%
 
388
BROWN 30-19 #1H
 
BRIGHAM
 
MOUNTRAIL, ND
 
9.25%
 
2,240

 
2

 
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
IP/BOEPD *
CROWFOOT #35-3031H
 
EOG
 
MOUNTRAIL, ND
 
8.38%
 
330
COWDEN #5404 13-35H
 
OASIS
 
WILLIAMS, ND
 
7.65%
 
1,594
EN-HEINLE #156-94-2536H-3
 
HESS
 
MOUNTRAIL, ND
 
7.29%
 
950
VIXEN FEDERAL #1-19-30H
 
SLAWSON
 
MOUNTRAIL, ND
 
6.70%
 
2,218
HELEN 11X-05
 
XTO
 
WILLIAMS, ND
 
6.64%
 
917
BENNY #1-13H
 
CONTINENTAL
 
RICHLAND, MT
 
6.25%
 
232
NORWAY #1-5H
 
CONTINENTAL
 
MCKENZIE, ND
 
5.14%
 
1,429
ROUND PRAIRIE #10-1819H
 
EOG
 
WILLIAMS, ND
 
4.82%
 
1,900
MILLER #44-11H
 
WHITING
 
WILLIAMS, ND
 
4.12%
 
1,144
BUD #1-19H
 
CONTINENTAL
 
WILLIAMS, ND
 
3.70%
 
1,983
KOSTELECKY 31-6H
 
FIDELITY
 
STARK, ND
 
3.60%
 
1,343
PROWLER #2-16
 
SLAWSON
 
MOUNTRAIL, ND
 
3.44%
 
1,145
HODENFIELD #15-23H
 
AMERICAN
 
WILLIAMS, ND
 
2.38%
 
1,400
EN-TRINITY #154-93-2833H-1
 
HESS
 
MOUNTRAIL, ND
 
2.28%
 
750
MCD #11-29H
 
FIDELITY
 
MOUNTRAIL, ND
 
2.08%
 
430
PAYARA # 2-21H
 
SLAWSON
 
MOUNTRAIL, ND
 
2.03%
 
1,148
MUIR #1-7H
 
CONTINENTAL
 
DIVIDE, ND
 
1.75%
 
671
MICHAEL STATE 31X-16
 
XTO
 
WILLIAMS, ND
 
1.19%
 
271
OUKROP #34-34H
 
FIDELITY
 
STARK, ND
 
1.17%
 
262
CLEARWATER #23-3025H
 
EOG
 
MOUNTRAIL, ND
 
1.08%
 
250
LYNN #19-20-29H
 
FIDELITY
 
MOUNTRAIL, ND
 
0.81%
 
1,251
SATTERTHWAITE #43-1H
 
WHITING
 
MOUNTRAIL, ND
 
0.70%
 
1,478
EN-WILL TRUST B #157-94-2635H-3
 
HESS
 
MOUNTRAIL, ND
 
0.54%
 
320
FORT BERTHHOLD #152-94-13B-24-1H
 
PETRO HUNT
 
MCKENZIE, ND
 
0.52%
 
1,135
_____________
 
*
The “IP BOEPD” means the initial production (“IP”) rate expressed in barrels of oil equivalent per day.  The IP rate is the 24-hour “Peak Production Rate.” Peak Production Rates may be established following the initial day of production, depending on operator design or well flowback profiles.  The IP rate may be estimated based on other third party estimates or limited data available at this time.  The IP BOEPD may be computed using crude oil production only, without taking into consideration any associated natural gas production. 

 
CURRENT DRILLING ACTIVITY

The following table illustrates wells that have spud and are currently drilling, awaiting completion or completing in which Northern Oil is participating with a working interest.
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
STATUS
VAGABOND #1-27H
 
SLAWSON
 
MOUNTRAIL, ND
 
49.04%
 
Completing
BIGHORN #1-6H
 
SINCLAIR
 
DUNN, ND
 
48.79%
 
Awaiting Completion
WATER MOCCASIN #1-34H
 
SLAWSON
 
MOUNTRAIL, ND
 
44.14%
 
Completing
MUSTANG #1-22H
 
SLAWSON
 
MOUNTRAIL, ND
 
39.56%
 
Completing
TVEIT 25-36 #1H
 
URSA
 
RICHLAND, MT
 
39.54%
 
Awaiting Completion
GUNNISON #44-25H
 
PRIMA
 
BURKE, ND
 
39.35%
 
Completing
NOVA #4-9-163-98H
 
SAMSON
 
DIVIDE, ND
 
37.50%
 
Awaiting Completion
KANDIYOHI #1-19H
 
EOG
 
BURKE, ND
 
37.47%
 
Drilling
TURBO #1-21-16H
 
SLAWSON
 
DUNN, ND
 
35.18%
 
Completing

 
3

 
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
STATUS
OLSON RANCH #1-21-16H
 
G3
 
ROOSEVELT, MT
 
33.00%
 
Drilling
YUKON #12-1-163-98H
 
SAMSON
 
DIVIDE, ND
 
32.81%
 
Drilling
MOORE #5304 13-1H
 
OASIS
 
WILLIAMS, ND
 
32.70%
 
Awaiting Completion
HOLLAND #9-19H
 
NORTH PLAINS
 
WILLIAMS, ND
 
32.68%
 
Awaiting Completion
DENALI #13-24-163-98H
 
SAMSON
 
DIVIDE, ND
 
32.45%
 
Drilling
AV-SCHWARTZ #163-93-1102H-1
 
HESS
 
BURKE, ND
 
30.61%
 
Awaiting Completion
ALAMO #2-19-18H
 
SLAWSON
 
MOUNTRAIL, ND
 
29.98%
 
Drilling
CROSBY CREEK #1-5H
 
SINCLAIR
 
DUNN, ND
 
29.63%
 
Completing
PORCUPINE #1-19H
 
SINCLAIR
 
DUNN, ND
 
29.02%
 
Awaiting Completion
DIAMONDBACK #2-21H
 
SLAWSON
 
MOUNTRAIL, ND
 
25.23%
 
Drilling
CYCLONE #1-21-16H
 
SLAWSON
 
MCKENZIE, ND
 
25.00%
 
Awaiting Completion
SHELL #1-3-34H
 
HUNT OIL
 
MOUNTRAIL, ND
 
23.44%
 
Drilling
RASCAL #1-18H
 
SLAWSON
 
RICHLAND, MT
 
20.00%
 
Awaiting Completion
PARADISE #5892 11-30H
 
OASIS
 
MOUNTRAIL, ND
 
18.78%
 
Awaiting Completion
GOODSON #1-28H
 
CONTINENTAL
 
DIVIDE, ND
 
18.75%
 
Drilling
OBENOUR #150-99-21-16-1H
 
NEWFIELD
 
MCKENZIE, ND
 
18.75%
 
Drilling
HARLAN REBSOM #1-2-11H
 
ANSCHUTZ
 
DUNN, ND
 
17.81%
 
Drilling
SCOUNDREL #1-8H
 
SLAWSON
 
RICHLAND, MT
 
16.81%
 
Completing
LYNN #5502 11-10H
 
OASIS
 
WILLIAMS, ND
 
15.68%
 
Drilling
PALERMO #1-2-31H
 
HUNT OIL
 
MOUNTRAIL, ND
 
15.03%
 
Awaiting Completion
BONANZA #1-21-16H
 
SLAWSON
 
MCKENZIE, ND
 
14.84%
 
Awaiting Completion
CLEO 31X-5
 
XTO
 
WILLIAMS, ND
 
14.33%
 
Drilling
BRATLIEN #2-35H
 
CONTINENTAL
 
DIVIDE, ND
 
13.95%
 
Completing
COTTONWOOD #9-28H
 
EOG
 
MOUNTRAIL, ND
 
12.99%
 
Completing
MUSKRAT FEDERAL #2-28-33H
 
SLAWSON
 
MOUNTRAIL, ND
 
12.83%
 
Awaiting Completion
LOSTWOOD #18-1224H
 
EOG
 
MOUNTRAIL, ND
 
12.52%
 
Drilling
ALLEN 21X-17
 
XTO
 
WILLIAMS, ND
 
11.90%
 
Drilling
FERTILE #28-26H
 
EOG
 
MOUNTRAIL, ND
 
11.88%
 
Awaiting Completion
HUNTER #1-8-17
 
SLAWSON
 
MOUNTRAIL, ND
 
11.74%
 
Completing
HUNTER #2-8-17
 
SLAWSON
 
MOUNTRAIL, ND
 
11.74%
 
Drilling
LOSTWOOD #20-1123H
 
EOG
 
MOUNTRAIL, ND
 
11.51%
 
Awaiting Completion
LOSTWOOD #21-1402H
 
EOG
 
MOUNTRAIL, ND
 
11.51%
 
Awaiting Completion
LOSTWOOD #22-1423H
 
EOG
 
MOUNTRAIL, ND
 
11.51%
 
Awaiting Completion
LOSTWOOD #6-1102H
 
EOG
 
MOUNTRAIL, ND
 
11.51%
 
Drilling
SUBMARINER FEDERAL #1-23-24H
 
SLAWSON
 
MOUNTRAIL, ND
 
10.89%
 
Completing
GERHARDSEN #1-10H
 
CONTINENTAL
 
DIVIDE, ND
 
10.17%
 
Completing
BATTALION #1-3H
 
SLAWSON
 
ROOSEVELT, MT
 
10.15%
 
Awaiting Completion
KOSTELNAK #28-1H
 
TRACKER
 
DUNN, ND
 
10.00%
 
Drilling
EN-WEFALD #156-94-1324H-1
 
HESS
 
MOUNTRAIL, ND
 
9.38%
 
Awaiting Completion
EN-WEFALD #156-94-1324H-2
 
HESS
 
MOUNTRAIL, ND
 
9.38%
 
Drilling
EN-WEFALD #156-94-1324H-3
 
HESS
 
MOUNTRAIL, ND
 
9.38%
 
Drilling
FRANCHUK #44-20SWH
 
ENCORE
 
DUNN, ND
 
9.38%
 
Awaiting Completion
UXBRIDGE #2-9H
 
CONTINENTAL
 
DIVIDE, ND
 
9.04%
 
Drilling
ORCA FEDERAL #1-23-26H
 
SLAWSON
 
MOUNTRAIL, ND
 
8.44%
 
Drilling
TATTU #19-1H
 
TRACKER
 
MCKENZIE, ND
 
8.21%
 
Drilling

 
4

 
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
STATUS
FORT BERHOLD #152-94-14C-11-1H
 
PETRO HUNT
 
MCKENZIE, ND
 
8.10%
 
Awaiting Completion
HARDSCRABBLE #13-3526H
 
EOG
 
WILLIAMS, ND
 
7.81%
 
Drilling
RELLA #18-19H
 
ZENERGY
 
WILLIAMS, ND
 
7.26%
 
Awaiting Completion
ROSENVOLD #1-30H
 
CONTINENTAL
 
DIVIDE, ND
 
6.44%
 
Drilling
HALLIDAY #1-36-25H
 
HUNT OIL
 
DUNN, ND
 
6.38%
 
Awaiting Completion
KANDIYOHI #5-3031H
 
EOG
 
BURKE, ND
 
6.36%
 
Drilling
BUCKLEY #1-9H
 
CONTINENTAL
 
RICHLAND, MT
 
6.25%
 
Awaiting Completion
EN-URAN A #154-93-2215H-1
 
HESS
 
MOUNTRAIL, ND
 
6.25%
 
Drilling
LOON FEDERAL #1-24-25H
 
SLAWSON
 
MOUNTRAIL, ND
 
6.22%
 
Completing
JACOB MADISON #11-27H
 
MARATHON
 
MOUNTRAIL, ND
 
5.78%
 
Awaiting Completion
KOESER #41-15 SWH
 
ENCORE
 
MCKENZIE, ND
 
5.59%
 
Drilling
ELK USA #11-17H
 
MARATHON
 
MOUNTRAIL, ND
 
5.57%
 
Drilling
WAHLSTROM #18-1H
 
TRACKER
 
MCKENZIE, ND
 
5.31%
 
Drilling
HALLIDAY #1-13-24H
 
HUNT OIL
 
DUNN, ND
 
5.11%
 
Drilling
RUTLEDGE #1-32H
 
CONTINENTAL
 
DUNN, ND
 
4.97%
 
Drilling
BUFFALO #34-12H
 
MARATHON
 
DUNN, ND
 
4.91%
 
Drilling
SCHA 33-34 #1-H
 
BRIGHAM
 
MOUNTRAIL, ND
 
4.88%
 
Drilling
STENEHJEM #27-34-1H
 
ABRAXAS
 
WILLIAMS, ND
 
4.87%
 
Awaiting Completion
SHELL #1-35-26H
 
HUNT OIL
 
MOUNTRAIL, ND
 
4.66%
 
Awaiting Completion
POMERAL STATE #7-36H
 
CORNERSTONE
 
BURKE, ND
 
4.50%
 
Awaiting Completion
FIELD TRUST 7-6 #1-H
 
BRIGHAM
 
WILLIAMS, ND
 
4.28%
 
Drilling
MAMBA #2-20H
 
SLAWSON
 
MOUNTRAIL, ND
 
4.22%
 
Completing
NIGHTCRAWLER #2-17H
 
SLAWSON
 
MOUNTRAIL, ND
 
4.20%
 
Completing
OXY OLSON #160-90-10-P-1H
 
OXY
 
BURKE, ND
 
4.17%
 
Drilling
RS-FLICKERTAIL #156-91-1720H-1
 
HESS
 
MOUNTRAIL, ND
 
4.00%
 
Awaiting Completion
AMBUSH #1-31-30H
 
SLAWSON
 
WILLIAMS, ND
 
3.96%
 
Awaiting Completion
MONTAGUE #5501 #13-3H
 
OASIS
 
WILLIAMS, ND
 
3.95%
 
Awaiting Completion
KOALA #9-5-6-12H3
 
KODIAK
 
MCKENZIE, ND
 
3.93%
 
Awaiting Completion
KOALA #9-5-6-5H
 
KODIAK
 
MCKENZIE, ND
 
3.93%
 
Awaiting Completion
VACHAL 3-34 #1H
 
BRIGHAM
 
MOUNTRAIL, ND
 
3.86%
 
Drilling
ROSS #27-2728H
 
EOG
 
MOUNTRAIL, ND
 
3.75%
 
Awaiting Completion
SOVIG #150-100-22C-15-1H
 
PETRO HUNT
 
MCKENZIE, ND
 
3.59%
 
Awaiting Completion
RS-SHUHART #156-90-2726H-3
 
HESS
 
MOUNTRAIL, ND
 
3.52%
 
Drilling
GENESIS #2-13H
 
SLAWSON
 
MOUNTRAIL, ND
 
3.44%
 
Completing
L. TUFTO 7-6#1-H
 
BRIGHAM
 
WILLIAMS, ND
 
3.24%
 
Completing
MEIERS #5692 11-19H
 
OASIS
 
MOUNTRAIL, ND
 
3.17%
 
Drilling
WOCK #14-11H
 
FIDELITY
 
STARK, ND
 
3.13%
 
Awaiting Completion
WOODROW 24X-32
 
XTO
 
WILLIAMS, ND
 
3.12%
 
Drilling
MEADOWLARK #2-6H
 
CONTINENTAL
 
DUNN, ND
 
3.12%
 
Completing
MEADOWLARK #3-6H
 
CONTINENTAL
 
DUNN, ND
 
3.12%
 
Awaiting Completion
SKACHENKO #2-31H
 
CONTINENTAL
 
DUNN, ND
 
3.12%
 
Completing
SKACHENKO #3-31H
 
CONTINENTAL
 
DUNN, ND
 
3.12%
 
Awaiting Completion
NELSON #2-26H
 
SINCLAIR
 
MOUNTRAIL, ND
 
3.11%
 
Drilling
WARDNER #24-35H
 
MARATHON
 
DUNN, ND
 
3.09%
 
Drilling
DRUMMOND #5501 44-21H
 
OASIS
 
WILLIAMS, ND
 
3.06%
 
Awaiting Completion

 
5

 
 
WELL NAME
 
OPERATOR
 
COUNTY/STATE
 
WI
 
STATUS
GLENDON #1-17H
 
CONTINENTAL
 
WILLIAMS, ND
 
3.05%
 
Drilling
AFSETH 34-3 #1-H
 
BRIGHAM
 
MOUNTRAIL, ND
 
2.88%
 
Completing
JUGHEAD FEDERAL #2-26H
 
SLAWSON
 
MOUNTRAIL, ND
 
2.81%
 
Drilling
STORVIK 7-6 #1H
 
URSA
 
RICHLAND, MT
 
2.35%
 
Drilling
DORIS 21X-5
 
XTO
 
WILLIAMS, ND
 
2.28%
 
Drilling
EN-TRINITY #154-93-2833H-2
 
HESS
 
MOUNTRAIL, ND
 
2.28%
 
Drilling
BARMAN #15-7H
 
AMERICAN
 
WILLIAMS, ND
 
2.25%
 
Drilling
STAFFORD #13-34H
 
BURLINGTON
 
MCKENZIE, ND
 
2.19%
 
Completing
DAKOTA-3 ELK #16-21H
 
ZENERGY
 
MOUNTRAIL, ND
 
2.15%
 
Drilling
ZOC DAKOTA-3 ELK #16-21H
 
ZENERGY
 
MOUNTRAIL, ND
 
2.15%
 
Drilling
CLEAR WATER #1-24-25H
 
HUNT OIL
 
MOUNTRAIL, ND
 
2.08%
 
Drilling
HOVDE 33-4 #1H
 
BRIGHAM
 
MCKENZIE, ND
 
2.08%
 
Drilling
CHARLOTTE #1-22H
 
CONTINENTAL
 
MCKENZIE, ND
 
1.68%
 
Drilling
MONT #3-3403H
 
EOG
 
WILLIAMS, ND
 
1.67%
 
Drilling
JOHNSRUD #1-1H
 
SM ENERGY
 
MCKENZIE, ND
 
1.67%
 
Drilling
DRONE #1-34-27H
 
SLAWSON
 
DUNN, ND
 
1.59%
 
Drilling
LIBERTY LR #17-11H
 
EOG
 
MOUNTRAIL, ND
 
1.59%
 
Awaiting Completion
HOLMES #5601 44-32H
 
OASIS
 
WILLIAMS, ND
 
1.57%
 
Awaiting Completion
HARTMAN #14-32H
 
MARATHON
 
DUNN, ND
 
1.57%
 
Awaiting Completion
OBRIGEWITCH #21-17TFH
 
WHITING
 
STARK, ND
 
1.56%
 
Awaiting Completion
JORGENSON #158-94-11D-2-1H
 
PETRO HUNT
 
MOUNTRAIL, ND
 
1.49%
 
Completing
NORMARK 24X-31
 
XTO
 
WILLIAMS, ND
 
1.38%
 
Completing
KLOSE #24-1H
 
TRACKER
 
MCKENZIE, ND
 
1.35%
 
Drilling
ETHAN HALL #6B-31-30-1H
 
ENERPLUS
 
DUNN, ND
 
1.35%
 
Awaiting Completion
FERTILE #45-29H
 
EOG
 
MOUNTRAIL, ND
 
1.25%
 
Drilling
HELLAND #15-19H
 
AMERICAN
 
WILLIAMS, ND
 
1.25%
 
Drilling
JAMES HILL #9-0112H
 
EOG
 
MOUNTRAIL, ND
 
1.25%
 
Drilling
RANSOM #44-31H
 
CONOCO
 
MCKENZIE, ND
 
1.19%
 
Awaiting Completion
AMY ELIZABETH #11-2H
 
ARSENAL
 
MOUNTRAIL, ND
 
1.13%
 
Drilling
CLEARWATER #24-3025H
 
EOG
 
MOUNTRAIL, ND
 
1.02%
 
Awaiting Completion
DAKOTA-3 MASON #2-11H
 
ZENERGY
 
MOUNTRAIL, ND
 
0.98%
 
Completing
HAUSTVEIT 42X-10
 
XTO
 
WILLIAMS, ND
 
0.94%
 
Completing
RMJK #31-26H
 
MARATHON
 
MOUNTRAIL, ND
 
0.94%
 
Drilling
ALINA TORMASCHY #1-32-29H
 
ANSCHUTZ
 
DUNN, ND
 
0.82%
 
Completing
LUCY FLECKENSTEIN #34-20H
 
MARATHON
 
DUNN, ND
 
0.78%
 
Drilling
SOLBERG #15-8H
 
AMERICAN
 
WILLIAMS, ND
 
0.78%
 
Drilling
TEMPE #1-29H
 
CONTINENTAL
 
DIVIDE, ND
 
0.78%
 
Awaiting Completion
KALIL FARM 14-23 #1H
 
BRIGHAM
 
WILLIAMS, ND
 
0.68%
 
Awaiting Completion
EN-FRANDSON #154-93-2116H-2
 
HESS
 
MOUNTRAIL, ND
 
0.61%
 
Awaiting Completion
DEVON #5601 12-17H
 
OASIS
 
WILLIAMS, ND
 
0.56%
 
Awaiting Completion
EN-WILL TRUST B #157-94-2635H-1
 
HESS
 
MOUNTRAIL, ND
 
0.54%
 
Awaiting Completion
EN-WILL TRUST B #157-94-2635H-3
 
HESS
 
MOUNTRAIL, ND
 
0.54%
 
Awaiting Completion

 
6

 
 
ABOUT NORTHERN OIL AND GAS

Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota.  Northern Oil's core area of focus is the Williston Basin Bakken and Three Forks play in North Dakota and Montana.

More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com .

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).  All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements.  When used in this report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes.  Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following, general economic or industry conditions, nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company’s operations, products, services and prices.

We have based these forward-looking statements on our current expectations and assumptions about future events.  While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.

CONTACT:

Investor Relations
Erik Nerhus
952-476-9800
 
 
7


Exhibit 99.2
 
Northern Oil and Gas, Inc.
Howard Weil 2011  
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)
 
 

 
2
Forward Looking Statements
Statements made by representatives of Northern Oil and Gas, Inc. (“Northern” or the “Company”) during
the course of this presentation that are not historical facts are forward-looking statements.   These
statements are based on certain assumptions and expectations made by the Company which reflect
management’s experience, estimates and perception of historical trends, current conditions, anticipated
future developments and other factors believed to be appropriate.   Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond the control of the Company,
which may cause actual results to differ materially from those implied or anticipated in the forward-looking
statements.   These include risks relating to the global financial crisis, our ability to obtain additional
capital needed to implement our business plan, minimal operating history, loss of key personnel, lack of
business diversification, reliance on strategic, third-party relationships, ability to obtain rights to explore
and develop oil and gas reserves, financial performance and results, our indebtedness under our credit
facility, prices and demand for gas, oil and natural gas liquids, our ability to replace reserves and
efficiently develop our current reserves, our ability to make acquisitions on economically acceptable
terms, and other important factors that could cause actual results to differ materially from those
anticipated or implied in the forward-looking statements.   Northern undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new information or future events.
 
 

 
3
Presenter
  Michael Reger
  CEO, Chairman
 
 

 
4
Williston Basin Bakken / Three Forks Focus
    Strong Williston Basin Position
  ­   Bakken / Three Forks acreage
  ­   ~151,300 net acres
    Participated in 475+ Gross
  Bakken / Three Forks wells
 
 

 
NOG Core Bakken Leasehold: ~151,300 Net Acres
5
 
 

 
6
Key Operating Statistics
Q4 2010   Average Net Production (boe/d)
~3,700
 
Exit Rate (boe/d) (as of 12/31/10)
2011E   Average Net Production (boe/d)
 
~5,200
~6,500   -   ~7,100
Net Wells Spud 2010
~25.00
Net Wells Spud (FY 2011E)
 
3 Net Bakken Wells Available for Drilling:
3 Net Three Forks Wells Available for Drilling:
Total Williston Basin Drilling Exposure:
 
~40.00
 
1,280 acre spacing = 354 net wells
1,280acre spacing = 354 net wells
708 NET WELLS
 
 
 

 
7
Strategy - Keep It Simple
    Maximize Bakken/Three Forks exposure as Non-Operator
  ­   Extensive leasehold in Mountrail County, ND
  ­   Substantial permitting activity on NOG’s acreage
  ­   Continue to partner with experienced operators
    Acquire opportunistic acreage and production
  ­   First Quarter 2011 - Acquired ~11,100 net acre for ~$1,540 per acre
    Maintain financial flexibility and strong balance sheet
  ­   December 2010 Capital Raise of $200 million
  ­   $125 million cash position
  ­   $100 million undrawn credit facility
  ­   No Debt
 
 

 
8
Bakken Shale Activity
    Favorable developments in the Bakken
  ­   North Dakota rig count is at all-time highs: ~ 173 rigs
  ­   Three Forks productivity delineating rapidly throughout the field
  ­   Completion techniques evolving rapidly (super-fracs widely used)
North Dakota Average Monthly Rig Count
 
 

 
9
    Record drilling activity has significantly intensified the pace of
  development
    NOG’s number of net wells drilling, awaiting completion, or
  completing continues to grow:
  ­   14.17 net wells as of March 28 th , 2011
  ­   13.32 net wells as of February 25 th , 2011
  ­   12.06 net wells as of November 29 th , 2010
  ­   7.2 net wells as of August 9 th , 2010
    North Dakota - NOG is currently participating in 141 gross wells
  drilling or completing (North Dakota rig count: ~ 173 rigs)
Northern’s Bakken Activity
 
 

 
10
Strong Northern Results
    25 net wells were spud in 2010
    Drilling guidance increased to 40 net wells spud by YE 2011
    Production increased 36% sequentially in Q4 2010
  ­   Production: 95% oil weighted
    Oil Hedges in place through June 2012
  ­   Total Swaps: ~1,789,000 barrels @ ~$87
  ­   Feb-Dec 2011 Costless Collar: ~451,000 barrels @ $85/101.75
    100% success rate in the Bakken/Three Forks play
 
 

 
11
    Net wells spud:
  ­   40.00
    Average production:
  ­   6,500   - 7,100 BOE per day
    Average estimated well cost:
  ­   $6.3 million
    Drilling capital plan:
  ­   $252 million
    Acreage capital plan:
  ­   Remain opportunistic
2011 Guidance
 
 

 
12
Northern’s Continued Execution
Cumulative Net Wells Producing & Spud
Average Quarterly Production ( BOEPD )
Source: Company Filings
 
 

 
13
Non-Operator Model
    Majority interest owner can permit a well on standard spacing without protest
    Minority interest owners pooled into pro-rata share of well / drilling unit
    Minority interest owner can permit well with support of other minority owners
Majority Interest (Operator)
75% (480 acres)
Minority Interest
(Non-Operator)
25% (160 acres)
640 Acre Section (Drilling Unit)
 
 

 
14
14
Non-Operator Model Continued
    Low cost producer
  ­   Pay only direct drilling, development and operating costs of wells
    Not responsible for many other operator costs
  ­   G&G
  ­   R&D
  ­   Seismic
Illustrative Transaction Timeline (1)
  ­   Legal / accounting for production
  ­   Engineering
  ­   Large operator staff not required
Benefits
Complete well
North Dakota Industrial
Commission issues
permit to drill Bakken
well
Receive authority for
expenditure (“AFE”)
Elect to participate / not
participate in AFE
Spud well / Make
payment to operator
based on AFE estimate
Receive first payment
from operator 60 days
after completion
Day 0
Day 120
Day 90
Day 60
Day 30
Day 180
    Transaction timeline can be shorter or longer depending primarily on factors affecting the successful drilling and completion of a well that are both within and beyond the operator’s control.
 
 

 
15
High-Quality Bakken Operators
OTHERS
Northern Operating Partners (% of Gross Wells)
Risk Diversification   +   Technology Transfer
 
 

 
16
Investment Highlights
    Large Core Bakken / Three Forks Acreage Position With
  Significant Drilling Inventory
    Numerous Benefits Achieved Through Working With High-
  Quality Operating Partners
    Attractive Bakken / Three Forks Economics
    Diversification Across Operators
 
    Acreage Acquisition Advantage
 
 

 
Questions & Answers
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)