Northern Oil and Gas, Inc. Provides Operations and Increased Drilling Activity Update

WAYZATA, Minn., April 12 /PRNewswire-FirstCall/ -- Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) ("Northern Oil") today provided an operations update related to drilling and completion activity in the Williston Basin Bakken and Three Forks play.  In connection with this operations update, Northern Oil also provided information regarding its preliminary financial results for first quarter 2010.

2010 DRILLING ACTIVITY

Since January 1, 2010, Northern Oil has spud 5.15 net wells.  Of those wells, 1.76 net wells are currently drilling but have not reached total depth and 2.05 net wells have been drilled to total depth and are awaiting fracture stimulation to commence production.  This high number of wells awaiting completion was caused by longer time delays from completion of drilling to commencement of oil sales, primarily due to the seasonal backlog of fracture stimulations that typically occurs in early spring as a result of reduced completion activities during the coldest months in North Dakota.  

Northern Oil now expects to spud up to 18 net wells in 2010, which represents an increase from previous guidance of 15 net wells.  We believe the increase in expected wells is based upon the increasing rig count, which is now at an all-time high of 108 drillings rigs in the North Dakota Bakken play.  Northern Oil's Chief Executive Officer, Michael Reger, commented "The pace of drilling in the Bakken and Three Forks plays continues to increase.  Given recent announcements by key operators in the plays, we expect 2010 drilling to increase by up to 20% to a total of 18 net Bakken and Three Forks wells."

FIRST QUARTER 2010 PRODUCTION AND PRELIMINARY FINANCIAL RESULTS

Northern Oil's first quarter 2010 production increased approximately 10% and oil and gas sales increased approximately 20% compared to fourth quarter 2009.  First quarter 2010 production approximated 125,000 barrels of oil equivalent ("BOE"), an increase from 114,000 BOE in fourth quarter 2009.  First quarter 2010 oil and gas sales were approximately $8.4 million, an increase of approximately 20% from fourth quarter 2009 oil and gas sales of $6,965,622.  First quarter 2010 net earnings are expected to be approximately $0.03 per outstanding share.

COMPLETION ACTIVITY

Northern Oil has experienced significant delays in fracture stimulation appointments for wells across all operators with whom we participate.  We believe this trend has been driven primarily by seasonal issues and increased costs of completing during the coldest winter months.  Additionally, Northern Oil believes there has been some constraint in moving fracture stimulation supplies, such as frac sand, into the field due to seasonal conditions.  Northern Oil expects that for the next quarter delay between fracture stimulation and completion may average as much as six weeks.  This is not affecting the pace of drilling and we continue to see wells drilled to total depth at an accelerated pace.  However, delays in fracture stimulation have the effect of delaying production additions.

RECENT COMPLETION HIGHLIGHTS

Northern Oil continues to believe that early 24 hour rates are not useful in determining the economics of a well.  Northern Oil is focused on well payout, which, in our core Slawson Exploration drilling program, we expect to occur four months on average following commencement of production.  As previously guided, Northern Oil will begin to report well flow rates as far out as 60 days, when available.  

The following table outlines well completions as of April 11, 2010.

CURRENT DRILLING ACTIVITY

The following table illustrates the wells in which Northern Oil has participated that are drilling or are awaiting completion and have experienced completion delays due to seasonal conditions as of April 11, 2010.  Northern is currently drilling or completing 3.81 net wells.

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 trend 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 and industry conditions 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.  

SOURCE Northern Oil and Gas, Inc.