Northern Oil and Gas Inc (NOG)

[Timothy Smith]

Northern Oil and Gas, Inc. Provides Second Quarter 2012 Production and Drilling Update and Provides Oil Derivative Summary

Jul 11, 2012 5:45:00 AM

WAYZATA, Minn., July 11, 2012 /PRNewswire/ -- Northern Oil and Gas, Inc. (NYSE MKT: NOG) ("Northern Oil") today provided a second quarter production and drilling update and oil derivative summary.

PRODUCTION UPDATE

Northern Oil expects to continue providing production updates on a going-forward basis shortly after the end of each fiscal quarter once the majority of quarterly production data becomes available. Given Northern Oil's significant inventory of non-operated wells, management believes these continued quarterly updates will be an effective way to supplement the annual guidance previously provided.

Northern Oil expects second quarter 2012 production to increase approximately 20% compared to first quarter 2012, resulting in an average of approximately 10,200 barrels of oil equivalent per day. During the first two months of the quarter, the weighted average days on production was approximately 52 out of a possible 61 producing days, or approximately 85% of potential producing days. Preliminary estimates of June's weighted average days on production appear to be consistent with the first two months of the second quarter.

DRILLING & COMPLETIONS UPDATE

During the second quarter of 2012, Northern Oil had approximately 162 gross (15.8 net) wells completed and placed into production. As of June 30, 2012, Northern Oil was producing from a total of 955 gross (87.6 net) wells.

As of June 30, 2012, Northern Oil was participating in an additional 150 gross (10.8 net) wells that were drilling, completing or awaiting completion.

DIFFERENTIAL UPDATE

Northern Oil observed differentials tighten from approximately $18.50 per barrel on average in April 2012 to approximately $11.50 per barrel on average in May 2012, and currently expects differentials to average approximately $14 per barrel for the second quarter of 2012.