Some Random Observations From Whiting's August, 2013, Corporate Presentation

Disclaimer: I often make typographical errors. Again, the blog is for my personal use (see "welcome/disclaimer") but I post it publicly for folks who might be interested. I try to be as accurate as possible when posting about the Bakken, but I do make errors. I recommend folks go to the original source.

Slide 10 (I am unsure of the meaning of some symbols in the legend, but I believe I am correct in the following):

Whiting notes four zones in the middle Bakken, Zones A, B, C, and D. In this particular slide, Whiting does not note the various benches in the Three Forks.

Zone A:

• TOC: 6.3 to 7.9%
• OOIP: 6 (mmboe/1280 acre)

Zone B:

• TOC: 4.4 to 6.1%
• OOIP: 7

Zone C:

• TOC: 6.0 to 9.4%
• OOIP: 6

Zone D:

• TOC: 4.7 to 6.5%
• OOIP: 11

Three Forks

• TOC: 7%
• OOIP: 9

[Back of the envelope: 40 x 0.05 x 75 = $150 million/1280-acre drilling unit at the wellhead.]

Slide 11:

• Whiting adds another 19 million bbls OOIP in Bakken shale; recovery efficiencies < 2%
• Whiting feels Zone D is underexploited 

Slide 12:

• proposed drilling plan for Whiting's various prospects
• as few as 6 wells per spacing unit in the Pronghorn prospect
• as many as 15 wells per spacing unit in the Hidden Bench prospect

Slide 13:

• graphic of Whiting's recent acquisition
• 17,282 net acres smack dab between its Missouri Breaks and Hidden Bench prospects
• even with the pricey new acquisition, Whiting states: as of 6/30/13, Whiting's total acreage cost in 697,259 net acres is approximately $383 million, or $549/net acre"
• for perspective: Oasis recently announced 161,000 acres for $1.51 billion

Slide17:

• cost of Red River wells: $3 to $3.5 million; EUR: 250K/well
• compare with "Bakken wells": $6 to $8.5 million

Slide 19:

• North Dakota production exceeds pipeline capacity
• rail plus pipeline exceeds production

Slide 20:

• Whiting has a robust oil and gas gathering system in the Williston Basin

Slide 21:

• realized prices in 2Q12: $75/bbl
• margins in 2Q12: $50/bbl