MINNEAPOLIS, Dec. 20, 2017 /PRNewswire/ -- Northern Oil
and Gas, Inc. (NYSE American: NOG) today announced a fourth quarter
2017 update, provided preliminary 2018 production and capital
expenditure estimates, and announced changes to the Company's Board
of Directors.
FOURTH QUARTER 2017 UPDATE
- Raising fourth quarter production guidance; now expecting
average daily production to increase by 4% to 6% over third quarter
2017, compared to prior guidance indicating flat sequential
production at the mid-point
- Now expect to add approximately 5 to 6 net wells to production
during the fourth quarter resulting in 2017 net well additions of
approximately 15 to 16 net wells
- Fourth quarter oil differential expected to improve by
$1.50 per barrel versus the mid-point
of prior guidance; now expecting a ($5.00) per barrel of oil differential for the
quarter
- Wells in process have increased by 6.6 net wells during 2017,
from 13.4 net wells as of December 31,
2016 to 20 net wells as of November
30, 2017
PRELIMINARY 2018 PRODUCTION AND CAPITAL EXPENDITURE
BUDGET
- The Board has approved a preliminary 2018 capital budget of up
to $176 million, which contemplates
20 to 22 net wells added to production during 2018
- Based on this preliminary budget, 2018 annual production is
expected to increase by 10% to 14% when compared to 2017
- The Board is also targeting a 10% to 15% reduction in general
and administrative expenses when compared to 2017 levels
MANAGEMENT COMMENT
"The momentum we saw exiting the third quarter has continued
into the fourth quarter and as a result we are raising our
expectations for fourth quarter production," commented Northern's
Interim CEO and CFO, Tom
Stoelk. "Our capital allocation process has resulted
in a great inventory of wells in process, which we expect will
continue to drive strong performance in 2018. As a result, we
are estimating that we will add between 20 and 22 net wells to
production during 2018, resulting in 2018 estimated production
growth of between 10% and 14%."
BOARD OF DIRECTORS
- Rich Weber, Northern's Chairman,
announced his resignation to allow him to focus his time on his
responsibilities as Chairman and CEO of PennEnergy Resources
- The Board appointed current director Bahram Akradi as Lead Independent Director and a
member of the Board's Executive Committee
- Mr. Akradi and the Executive Committee will provide leadership
to help guide the Company on an ongoing basis
"The Company wishes to thank Rich for his tireless service as
Chairman over the last two years as well as his Board contributions
over the last six years," commented Bahram
Akradi, Northern's Lead Independent Director. "It has
been a pleasure working with Rich since joining the Board earlier
this year. I am extremely excited about the future of
Northern and where we can take this company over the coming months
and years; it is a future I am excited to be a part
of."
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production
company with a core area of focus in 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 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 release regarding Northern's 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
release, forward-looking statements are generally accompanied by
terms or phrases such as "estimate," "project," "predict,"
"believe," "expect," "continue," "anticipate," "target," "could,"
"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
Northern's control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the following: changes in crude oil and natural gas
prices, the pace of drilling and completions activity on Northern's
properties, Northern's ability to acquire additional development
opportunities, changes in Northern's reserves estimates or the
value thereof, general economic or industry conditions, nationally
and/or in the communities in which Northern conducts business,
changes in the interest rate environment, legislation or regulatory
requirements, conditions of the securities markets, Northern's
ability to raise or access capital, changes in accounting
principles, policies or guidelines, financial or political
instability, acts of war or terrorism, and other economic,
competitive, governmental, regulatory and technical factors
affecting Northern's operations, products, services and prices.
Northern has based these forward-looking statements on its
current expectations and assumptions about future events.
While 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 Northern's control.
CONTACT:
Brandon Elliott, CFA
Executive Vice President,
Corporate Development and Strategy
952-476-9800
belliott@northernoil.com
View original
content:http://www.prnewswire.com/news-releases/northern-oil-and-gas-inc-provides-fourth-quarter-update-provides-preliminary-2018-production-and-capital-expenditure-estimates-and-announces-changes-to-the-board-of-directors-300573661.html
SOURCE Northern Oil and Gas, Inc.