Whiting's 2Q 2010 Results

2Q 2010, PowerPoint Presentation

Whiting's 2Q, 2010, Results -- their press release, Investopedia Recap

• Record Production
• Q2 2010 64,600 boe/d up 17% from 55,309 boe/d in Q2 2009
• Q2 2010 daily production up 8% over Q1 2010
• June 2010 65,690 boe/d Up 5% vs. 62,545 boe/d in March 2010
• Production from Sanish and Parshall Fields in North Dakota increases 17% to 27,380 boe/d in June 2010 from 23,365 boe/d in March 2010
• Production from our two EOR projects increases 3% to 17,250 boe/d in Q2 2010 from 16,800 boe/d in Q1 2010
• 2010 Production Guidance Raised to 15% to 17% over 2009
• Net income available to common shareholders of $119.9 million ($2.12 per Diluted Share)
• Adjusted net income of $72.2 Million ($1.31 per Diluted Share)
• Q2 2010 discretionary cash flow totals $228.2 million

The increase in 2010 from 2009 is about 10,000 boe/d. At $50/bbl, that's an increase of $500,000/day. Call me exuberant, but that seems like quite a change in cash flow.

*****

Operations Update: Sanish

• Completed 21 operated wells in Sanish field; bringing to 40 completed wells so far in 2010
• WLL now has 108 wells in the Sanish
• Of the 40 new wells: 36 were Bakken; 26 of these were infill; four were TFS

• Whiting completed two high-volume wells in the Sanish field just before the end of the quarter
• Fladeland 12-10H: 4,126; an in-fill well; 30 fracture stages
• The Fladeland 12-10H was the 3rd highest IP for WLL 
• Maki 11-27, 4,761, October 24, 2009
• Richardson Federal 11-9H, 4,570, October 22, 2008

• Hansen 12-20H, 3,863, 18 fracture stages

At end of quarter

• 11 operated wells were being completed or awaiting completion
• 9 operated wells were being drilled
• WLL intends to drill a total of 90 operated wells in 2010
• Participate in another 8 non-operated wells
• 52 net wells
• Of the 98: 88 Bakken, 10 TFS
• WLL estimates there are at least 57 Bakken wells and 128 TFS wells yet to be drilled in the Sanish field

Cost and Time
$5 million/well
Time to drill to depth (20,000 feet), including 10,000 foot laterals: average, 20 days
Two wells drilled in 15 days (from spud date to total depth)
With an average of 19 fewer days on site, WLL saves about $900,000/well in drilling costs

Takeaway
Saving $1 - $2/bbl shipping in Enbridge pipeline rather than by truck
Enbridge will add takeaway capacity in first quarter 2011

Operations Update: Lewis and Clark (Golden Valley, Billings, Stark Counties)
Adding to acreage: now potential for at least 500 wells that could target the TFS
Federal 32-4HBKCE, 1,970; 51,000 boe in first six months of production; TFS