Northern Oil And Gas, Inc. · NYSE:NOG
Northern Oil And Gas — Howard Weil 2011
17 slides from Northern Oil And Gas's conference presentation, Mar 28, 2011
Slide 1: Northern Oil and Gas, Inc. (NYSE/AMEX: NOG)
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) Northern Oil and Gas, Inc. Howard Weil 2011
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: Presenter
3 Presenter Michael Reger CEO, Chairman
Slide 4: Williston Basin Bakken / Three Forks Focus
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
Slide 5: NOG Core Bakken Leasehold: ~151,300 Net Acres
NOG Core Bakken Leasehold: ~151,300 Net Acres 5
Slide 6: Key Operating Statistics
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 fo
Slide 7: Strategy - Keep It Simple
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 - Acqui
Slide 8: Bakken Shale Activity
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
Slide 9: Northern's Bakken Activity
9 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: 14.17 net wells as of March 28 th , 2011 13.32 net wells as of February 25 th , 2011 12.06 net w
Slide 10: Strong Northern Results
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
Slide 11: 2011 Guidance
11 2011 Guidance 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
Slide 12: Northern's Continued Execution
12 Northern’s Continued Execution Cumulative Net Wells Producing & Spud Average Quarterly Production ( BOEPD ) Source: Company Filings
Slide 13: Non-Operator Model
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) M
Slide 14: Non-Operator Model Continued
14 14 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 prod
Slide 15: High-Quality Bakken Operators Risk Diversification + Technology Transfer
15 High-Quality Bakken Operators Risk Diversification + Technology Transfer OTHERS Northern Operating Partners (% of Gross Wells)
Slide 16: Investment Highlights
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
Slide 17: Questions & Answers
Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) Questions & Answers