Northern Oil And Gas, Inc. · NYSE:NOG
Northern Oil And Gas — IPO Roadshow (November 2010)
18 slides from Northern Oil And Gas's IPO roadshow presentation, Nov 16, 2010
Slide 1: Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) Northern Oil and Gas, Inc. November 2010
Slide 2: Forward Looking Statements
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
Slide 3: Offering Summary
3 Offering Summary Issuer Northern Oil and Gas, Inc Ticker Symbol NYSE AMEX: NOG Common Stock Offered (1) 8.0 Million Shares Gross Proceeds (1)(2) $153,760,000 Over-allotment Option 15% of Shares Offered Shares Outstanding (Pre-Offering) 51.6 Million Shares (3) Shares Outstanding (Post-Offering) (1)
Slide 4: Presentation Team
4 Presentation Team Michael Reger Chairman & CEO Ryan Gilbertson President
Slide 5: Williston Basin Bakken / Three Forks Focus
5 Williston Basin Bakken / Three Forks Focus Strong Williston Basin Position Leveraged to the Bakken / Three Forks Play Bakken / Three Forks acreage ~122,000 net acres Participated in 300+ gross Bakken / Three Forks wells 91 gross (10.7 net) Bakken / Three Forks wells currently drilling or completin
Slide 6: NOG Core Bakken Leasehold: ~122,000 Net Acres
NOG Core Bakken Leasehold: ~122,000 Net Acres 6
Slide 7: Key Operating Statistics
7 Key Operating Statistics Q3 2010 Average Net Production (boe/d) ~2,700 Q3 2010 Exit Rate Production (boe/d) 2011E Average Net Production (boe/d) ~3,400 ~6,500 Net Wells Spud (Year-to-Date) ~23.68 Net Wells Spud (FY 2010E) Net Wells Spud (FY 2011E) 2 Net Bakken Wells Available for Drilling: 2 Net T
Slide 8: Strategy – Keep It Simple
8 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 Acquired ~38,800 net acres year-to
Slide 9: Bakken Shale Activity
9 Bakken Shale Activity Favorable developments in the Bakken North Dakota rig count is at all-time highs: ~ 157 rigs Three Forks productivity delineating rapidly throughout the field Completion techniques evolving rapidly (super-fracs widely used) Source: NDIC Department of Minerals North Dakota Ave
Slide 10: Northern’s Bakken Activity
10 Northern’s Bakken Activity Record drilling activity has significantly intensified the pace of development NOG’s number of net wells drilling, awaiting completion, or completing continues to grow: 10.7 net wells as of November 5 th , 2010 7.2 net wells as of August 9 th , 2010 5.7 net wells as of
Slide 11: Strong Northern Results
11 Strong Northern Results 23.68 net wells have been spud year to date Drilling guidance increased to 25 net wells by YE 2010 Production increased 45% sequentially in Q3 2010 Production: 96% oil weighted Oil Hedges (Swaps) in place through June 2012 Total Hedges: 1,347,000 barrels @ ~$81 ~30% of 201
Slide 12: 2011 Guidance
12 2011 Guidance Net wells spud: Average production: 6,500 BOE per day Average estimated well cost: $6.3 million Drilling capital plan: $227 million Acreage capital plan: Remain opportunistic
Slide 13: Northern’s Continued Execution
13 Northern’s Continued Execution Cumulative Net Wells Producing & Spud Average Quarterly Production ( BOEPD ) Source: Company Filings 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 1,000 1,500 2,000 2,500 3,000 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Slide 14: Non-Operator Model
14 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) M
Slide 15: Non-Operator Model Continued
15 15 Non-Operator Model Continued Day 0 Day 120 Day 90 Day 60 Day 30 Day 180 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 Eng
Slide 16: High-Quality Bakken Operators Risk Diversification + Technology Transfer
16 High-Quality Bakken Operators Risk Diversification + Technology Transfer OTHERS Northern Operating Partners (% of Gross Wells) 8% 2% 4% 3% 27% 15% 15% 6% 5% 2% 13%
Slide 17: Investment Highlights
17 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 Low Cost Producer
Slide 18: Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) Questions & Answers The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the base prospectus