NOG: January, 2019 -- Corporate Presentation

In anticipation of NOG's earnings, 4Q18, a look at NOG's corporate presentation, January, 2019.

Reminder for newbies: NOG is a non-operator in the Bakken.

• acres
• net acres: 151,978 net acres
• 95% held, 97% held in North Dakota
• production:
• 4Q18: mid-point guidance -- 35,500 boepd
• 3Q18: 26,708 boepd; 84% crude oil
• big picture
• enterprise value: $1.920 million
• market cap: $1.080 billion
• wells
• well costs (AFE): $8.0 million
• EURs
• 2018 wells tracking over a 1,000 Mboe EUR type curve
• high quality wells, selected -- name of well, operator, peak 30 (boepd), middle Bakken wells:
• Liberty 45-1311H, EOG, 1,568
• Gabriel 1-36-25H, Slawson, 1,376
• Wold Federal 44-7-4XH, Whiting
• Shorty 4-9F 3H, Equinor, 1,132
• Wiley 8-25H, CLR, 2.289
• EN-Sorenson B-LE-155-94-3526H-1, Hess, 1,448
• Lars 14-8H, MRO, 1,648
• Orvis State 150-99-21-16-5H, Newfield, 2,278
• Faye 1C MBH, BR, 1,421
• Crane Federal 5300 34-24-12B, 1,327
• high quality wells, selected -- name of well, operator, peak 30 (boepd), Three Forks wells:
• Liberty 114-1311H, EOG, 1,476
• Gabriel 5-36-25TFH, Slawson, 1,355
• Wold Federal 44-7-1TFH, Whiting, 1,745
• Sibyl USA 44-19TFH, MRO, 3,746
• Burr Federal 8-26H2, CLR, 1,013
• top operators
• Slawson: 15.1%
• CLR: 14.2%
• Whiting: 11.9%
• Hess: 8.0%
• COP: 7.4%
• Oasis: 5.0%
• EOG: 4.9%
• XTO: 4.7%
• Equinor: 3.7%
• Petro-Hunt: 2.9%
• MRO: 2.6%

A closer look at that MRO Sibyl USA Three Forks well:

• 33943, 6,396, MRO, Sibyl USA 44-19TFH, Reunion Bay, t9/18; cum 241K 1/19; 

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	31	41337	41813	25992	81403	0	78934
BAKKEN	12-2018	29	27195	27567	19853	42322	0	40661
BAKKEN	11-2018	30	54031	53945	34523	80450	0	77300
BAKKEN	10-2018	31	88495	87749	69016	118686	0	113630
BAKKEN	9-2018	10	29474	28988	20942	36373	0	34709

Neighboring well, was a dying well by 2014, then along with the "children" wells, it was re-fracked in 2018:

• 17568, 539/5,645, MRO, Charles Shobe-USA 44-19H, Reunion Bay, F, 5.7 million gallons water; 45 stages, 5.5 million lbs (7/16/18); original frack was a one-stage open hole frack, one-half million lbs, t2/09; cum 343K 1/19; so, for the price of a small frack, got a "brand new well" with an IP of 5,645;

Recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	31	36180	36165	10789	50286	0	47817
BAKKEN	12-2018	18	31554	31646	10902	40476	0	38220
BAKKEN	11-2018	15	25449	25339	10356	30664	0	29203
BAKKEN	10-2018	18	38867	39989	24669	47393	0	45170
BAKKEN	9-2018	12	29459	28021	32833	32716	0	32596
BAKKEN	8-2018	1	0	171	4	98	0	98
BAKKEN	7-2018	1	1	0	0	0	0	0
BAKKEN	6-2018	0	0	0	0	0	0	0
BAKKEN	5-2018	0	0	71	0	0	0	0
BAKKEN	4-2018	23	519	517	54	620	356	72
BAKKEN	3-2018	31	708	728	70	897	256	394
BAKKEN	2-2018	22	623	645	64	755	34	51

Not a neighbor, but in the same general area, not refracked; last fracked in 2014, as an open hole frack with one-half million lbs sand:

• 16686, 379, MRO, Shobe 24-20H, Reunion Bay, t12/08; cum 415K 1/19; 

Recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2019	31	11509	11536	14791	14162	6881	6621
BAKKEN	12-2018	30	13796	13667	28932	14844	8120	5927
BAKKEN	11-2018	1	302	300	761	115	29	69
BAKKEN	10-2018	0	0	0	0	0	0	0
BAKKEN	9-2018	0	0	0	0	0	0	0
BAKKEN	8-2018	2	0	370	185	251	0	250
BAKKEN	7-2018	27	2625	2582	568	3686	3315	65
BAKKEN	6-2018	30	3032	3166	656	4208	3823	33
BAKKEN	5-2018	31	3093	3179	723	4270	1940	1969
BAKKEN	4-2018	30	3331	3229	734	4524	3960	23