Magnum Hunter: Proposed Acquisition in Williston Basin Did Not Close

- Magnum Hunter: Proposed Acquisition in Williston Basin Did Not Close

Friday, August 19, 2011
Magnum Hunter Resources Corp.

Magnum Hunter announced that the previously announced proposed acquisition by its wholly owned subsidiary, Williston Hunter ND, LLC, of oil and gas properties in the Williston Basin in North Dakota from Eagle Operating, Inc. ("Eagle") did not close yesterday due to unresolved issues between the parties resulting from what Magnum Hunter considers to be Eagle's intentional and bad faith breach of its obligations under the Purchase and Sale Agreement ("PSA"). In the proposed acquisition, Magnum Hunter would have acquired from Eagle for total consideration of $57 million ($55 million in cash and $2 million in Magnum Hunter restricted common stock), the remaining approximate 48% working ownership interest in the Williston Basin properties owned by Eagle, subject to Eagle's retention of a variable overriding royalty interest not exceeding 2% on certain properties.

The acquisition would also have resulted in the settlement of two pending lawsuits between the Company and Eagle currently filed in the United States District Court for the District of North Dakota (Northwestern Division), which litigation is now expected to continue. Management of Magnum Hunter does not consider this pending litigation to be of any material nature to the Company.

Magnum Hunter has today filed a new lawsuit against Eagle in the United States District Court for the District of North Dakota (Northwestern Division) asking the court to order Eagle to comply with its obligations under the PSA and complete the sale of the properties to the Company on the specific terms outlined in the PSA. Magnum Hunter is also seeking monetary damages, including compensatory, consequential and general damages, for Eagle's material default under the PSA. The Company intends to vigorously pursue all available remedies against Eagle.

As of August 18, 2011, Magnum Hunter had total liquidity including cash and availability under its various credit facilities of approximately $75 million, of which approximately $55 million is currently available to continue to fund its upstream capital program focused on the Company's high growth unconventional resource plays. In addition, Magnum Hunter has a commitment from its bank group to provide an additional $42.5 million in borrowing capacity for the purchase of the Eagle properties referenced above. Moreover, Magnum Hunter continues to pursue various non-dilutive alternatives to provide access to capital in order to fund capital budget needs later in fiscal year 2012.

Additional information regarding the Company's lawsuit against Eagle, including a copy of the complaint filed by the Company Friday in the United States District Court for the District of North Dakota (Northwestern Division), is contained in a Report on Form 8-K also filed today by the Company with the Securities and Exchange Commission.

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Magnum Hunters Acquires Acreage in Williston Basin

- Magnum Hunters Acquires Acreage in Williston Basin

Friday, August 05, 2011
Magnum Hunter Resources Corp.

Magnum Hunter's wholly owned subsidiary, Williston Hunter ND, LLC, has entered into a Purchase and Sale Agreement ("PSA") with a privately-held company ("Seller") for all of the Seller's operated working interest ownership in oil and gas mineral leases and 191 wells on approximately 15,500 gross acres located within four counties of the Williston Basin of North Dakota. Gross production from the properties is approximately 833 BOE per day. Total proved reserves attributable to the acquired properties are estimated at 2.6 million barrels of oil equivalent. Magnum Hunter presently owns an approximate 47% working interest in these oil and gas properties. Upon closing of this transaction, Magnum Hunter will own an approximate 95% working interest in these properties. The effective date of the transaction is April 1, 2011. Magnum Hunter intends to close the purchase transaction on or before August 18, 2011.

Magnum Hunter will pay to the Seller a total purchase price of $57 million, to be paid at closing in the form of $55.0 million in cash and $2.0 million in Magnum Hunter restricted common stock. The number of shares of Magnum Hunter common stock will be determined based on the volume weighted average price of the Company's common stock during the five trading days prior to closing. Magnum Hunter intends to fund the cash portion of this purchase through existing liquidity and borrowings under the Company's senior credit facility. Additionally, the Seller will retain an overriding royalty interest in certain of the properties in various amounts not to exceed 2%. No existing debt of Seller will be assumed by Williston Hunter in connection with the closing of the acquisition.

The PSA between Williston Hunter and the North Dakota based privately-held Seller was negotiated pursuant to a Settlement Agreement between Magnum Hunter and the Seller as a result of certain lawsuits pending in the United States District Court for the District of North Dakota (Northwestern Division). The agreed upon settlement between the parties will resolve all outstanding claims. The parties will file stipulations with the District Court for dismissal, with prejudice, of the two pending civil actions upon the PSA's final closing.

Management Comments

Mr. Glenn Dawson, President of Williston Hunter, commented, "We are pleased to announce this final agreement to acquire these Williston Basin properties where we have been a minority owner for years. With this 'bolt on' transaction, we will be establishing an operating base in North Dakota which has been a primary objective as we continue to grow our presence in the Williston Basin. Our game plan in 2011 is to continue our geological and engineering evaluation of these properties so that we will be in a position to prudently develop these assets beginning early next year."

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Kodiak Drills Ahead in Williston Basin

- Kodiak Drills Ahead in Williston Basin

Thursday, August 04, 2011
Kodiak O&G Corp.

Kodiak O&G announced its second quarter 2011 financial and operational results. The Company also provided an interim operations update on its Williston Basin drilling and completion activities.

Highlights Include:

• 2Q 2011 Earnings of $8.2 Million, Before Unrealized Derivatives Gain
• Oil & Gas Sales of $22.1 Million, a 261% Increase
• Equivalent Sales Volumes 238,000 BOE, a 149% Increase
• Adjusted EBITDA of $13.7 Million, 377% Growth
• Two New Bakken Well Completions in McKenzie County, N.D.

Second Quarter 2011 Financial Results

The Company reported net income for the second quarter 2011 of $14.0 million, or $0.08 per basic and diluted share, compared with net income of $621,000, or $0.01 per basic and diluted share, for the same period in 2010. Included in the second quarter 2011 net income calculation are unrealized derivative gains of $5.8 million attributed to the non-cash change in the value of derivatives utilized for commodity price risk management. Excluding the effect of unrealized derivative gains, a non-cash credit, Kodiak would have reported adjusted net income (a non-GAAP measure) of $8.2 million for the second quarter 2011, or $0.05 per basic share and $0.04 per diluted share.

For the quarter-ended June 30, 2011, the Company reported oil and gas sales of $22.1 million, as compared to approximately $6.1 million during the same period in 2010, a 261% increase and a Company record. Crude oil revenue accounted for approximately 97% of second quarter 2011 oil and gas sales, and crude oil constituted 94% of sales volumes for the quarter. Kodiak posted a 157% increase in oil sales volumes and a 72% increase in gas sales volumes for an overall 149% increase in quarter-over-quarter equivalent sales volumes of 238,000 barrels of oil equivalent (BOE).

Adjusted EBITDA, a non-GAAP measure, was $13.7 million for the second quarter 2011, as compared to $2.9 million in the same period in 2010, a 377% increase and another Company record. Kodiak defines Adjusted EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depletion, depreciation, amortization, and accretion (iv) impairment, (v) non-cash expenses relating to share based payments recognized under ASC Topic 718, (vi) pre-tax unrealized gains and losses on foreign currency, and (vii) pre-tax unrealized gain and losses on commodity price risk management activities. A reconciliation of Adjusted EBITDA to net income is included in the financial tables later in this earnings release.

Kodiak reported record net cash provided by operating activities for the second quarter 2011 of $16.3 million, as compared to $7.2 million in the same period in 2010. The Company reported cash used in investing activities of $116.8 million during the second quarter of 2011, of which approximately $30.6 million was invested for the drilling and completion of wells and for infrastructure in its Williston Basin drilling program. The Company also invested $85.8 million during the second quarter 2011 to acquire an additional 25,000 net acres and producing properties in the Williston Basin which closed on June 30, 2011.

Second Quarter 2011 Expense Analysis

For the quarter-ended June 30, 2011, general and administrative (G&A) expense was $4.2 million, as compared to $2.6 million for the same period in 2010. The increase in total G&A is attributed primarily to the hiring of new personnel as the Company continues to expand its operations. The Company had 52 employees at June 30, 2011, as compared to 27 employees at June 30, 2010. Included in the second quarter 2011 G&A expense is a non-cash, stock-based compensation charge of $947,000 million, as compared to $866,000 for the same period in 2010.

Kodiak's lease operating expense (LOE) for the second quarter 2011 was $4.4 million, as compared to $1.5 million during the same period in 2010. The increase in LOE is attributed to additional production expense associated with a growing number of producing wells. Severance taxes were also higher due to increased oil and gas revenues during the 2011 period, as compared to the 2010 period.

Depletion, depreciation, amortization, and accretion (DD&A) expense for the second quarter 2011 was $4.5 million, as compared to $1.5 million for the same period in 2010. The increase is primarily due to the increase in sales volumes and, to a lesser extent, an increase in the per-unit charge.

Williston Basin Operations Update

Kodiak's four operated drilling rigs are presently drilling ahead on multi-well drilling pads. Two rigs are drilling in McKenzie County, and two rigs are drilling in Dunn County. The Company anticipates that the fifth operated drilling rig will be mobilized to McKenzie County when construction of the rig is completed in the fourth quarter of 2011.

As previously announced, the Company's completion activities are progressing according to schedule, and Kodiak expects to complete or commence completion operations on 10 gross and 7.5 net operated wells in the Williston Basin during the third quarter of 2011, including the Koala wells. In addition, the Company expects to participate in the completion of four gross (2.0 net) non-operated wells in the third quarter of 2011.

Management Comment

Commenting on second quarter 2011 results, Kodiak's Chairman and CEO Lynn A. Peterson said, "Kodiak's second quarter results were the strongest in Company history. We reported robust growth in several of the metrics that we monitor to assess our progress and performance. The results from our Koala project area wells are very encouraging and further demonstrate the productive potential in this prolific area of the Williston Basin. The four Koala wells that we have completed to date are all very strong wells with production established from middle Bakken as well as the Three Forks. The wells were drilled in a manner which continues to test the density of well bores and the communication between reservoirs. Well performance will be monitored over the coming quarters.

"As we look at the anticipated ramp-up in our production, combined with the $160 million of cash obtained from the public offering of common stock, the Company is in its strongest financial position ever. We announced the expansion of our borrowing revolver recently and we anticipate that the facility will continue to expand as we bring additional wells on during the remaining months of 2011 and beyond. We expect to selectively add to our Williston Basin acreage position and expect increased drilling and completion activity in the upcoming quarters. We believe we now have ample liquidity through our cash balances, operating cash flow and access to our credit facilities to fund our expanding drilling program."

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Whiting Posts Production Rates for Williston Basin Wells

- Whiting Posts Production Rates for Williston Basin Wells

Thursday, August 04, 201
Whiting Petroleum Corp.

Whiting released information on six western Williston Basin areas within its Lewis & Clark prospect and three nearby prospects. The initial production rates from wells drilled in these nine areas averaged 1,471 barrels of oil equivalent (BOE) per day. Whiting believes that its drilling results at Lewis & Clark and Hidden Bench as well as non-operated drilling results at Missouri Breaks and Starbuck indicate that a large portion of its 1,102,302 gross acres and 680,137 net acres in the Williston Basin has been shown to be productive and have excellent initial production rates.

Eleven Whiting-operated Sanish Sand wells in our Pronghorn area had initial production rates averaging 1,298 BOE per day. This average excludes four delineation wells drilled to determine the southwest boundary of the Sanish Sand reservoir at Pronghorn.

In our Big Stick area, we have completed three wells with initial production rates averaging 1,043 BOE per day. At Demores, where two wells had initial production rates averaging 479 BOE per day, Whiting is changing the direction of its well bores to a north-south orientation to encounter more natural fractures. In its Beaver Creek area, Whiting has completed six wells that averaged 1,119 BOE per day. A recent well in the Beaver Creek area, the Dry Creek 44-20TFH, flowed 2,337 BOE per day from the Three Forks formation on August 2, 2011. The Company has completed one well in its O'Neil Creek area. The Mosser 11-27TFH well was completed in the Three Forks formation with an initial production rate of 193 BOE per day. Severe weather conditions which caused a shut-down of flow back operations post frac is believed to have resulted in the low initial production rate on this well.

At Missouri Breaks and Starbuck, another operator has drilled within the outline of our acreage position. One non-operated well at Missouri Breaks was completed flowing 2,962 BOE per day. Three non-operated wells at Starbuck had initial production rates averaging 1,264 BOE per day. Whiting currently has two operated wells waiting on completion at the Starbuck prospect with results expected within 30 days.

James J. Volker, Whiting's Chairman and CEO, commented, "We are very encouraged with our results at Lewis & Clark and Hidden Bench. We are also encouraged by the initial production rates of area non-operated wells and the shows encountered during drilling operations on our two operated wells at Starbuck. We plan to complete these wells in early September.

"We own 387,351 gross (254,818 net) acres in Lewis & Clark, which is more than three and a half times larger than our Sanish field. At Lewis & Clark, Whiting has a controlling interest in 164 1,280-acre spacing units with an average working interest of 64%. Based on production to date at Lewis & Clark, it appears that these wells have a relatively shallow decline rate. Therefore, we continue to believe that our wells at Lewis & Clark will have Estimated Ultimate Recoveries (EURs) in the 300,000 to 500,000 BOE range."

Mr. Volker added, "Based on IHS data, with its average of 100,000 BOE, we continue to be on top of the list in terms of cumulative production during the first six months from all Bakken wells drilled in North Dakota since January 2009. For companies with a sample of at least 10 wells, Whiting leads the pack by 15,000 to 70,000 BOE in the first six months. We hold more than 680,000 net acres in the Bakken/Three Forks Hydrocarbon System that we believe will generate increased production and reserve additions."

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Drilling Commenced at GMX's Williston Well

- Drilling Commenced at GMX's Williston Well

Thursday, July 07, 2011
GMX Resources Inc.

GMX has begun drilling its first well in the Williston Basin.

The Company has spudded its first Williston Basin well in Stark County, North Dakota. The Wock 21-2-1H is a Three Forks well being drilled in Township 140N, Range 98W. The Company expects the well to be completed in the third quarter of 2011.

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Kodiak Completes Williston Basin Acquisition

- Kodiak Completes Williston Basin Acquisition

Thursday, June 30, 2011
Kodiak Oil and Gas Corp.

Kodiak Oil & Gas Corp. today announces the June 30, 2011 closing of the previously announced acquisition of Williston Basin oil and gas producing properties and undeveloped leasehold.

Included in the transaction are approximately 25,000 net mineral acres and production of approximately 200 net barrels of oil equivalent per day (BOE/d). The total purchase price for the leasehold interests and associated assets is $85.5 million and is comprised of $71.5 million in cash and the issuance to the Seller of 2.5 million shares of Kodiak common stock. Kodiak funded the transaction through cash balances and borrowings under credit facilities including its reserve-based revolving line of credit.

As part of the transaction, Kodiak entered into a contract for a new build drilling rig that was previously contracted to the Seller. The new build drilling rig is scheduled for completion in September 2011.

Including today's acquisition, Kodiak's acreage position in the Williston Basin now approximates 100,000 net acres.

The shares of common stock of Kodiak issuable under the acquisition agreement with the Seller have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

Operations Update

Kodiak has begun completion operations on its two-well pad in the Koala project area in McKenzie County, N.D. The Company anticipates completing both wells during early July 2011 and plans to simultaneously flow back the wells and turn them to production facilities and gas pipeline infrastructure which services the area. Kodiak operates the two-well pad with a 52.5% working interest and a 42.5% net revenue interest.

Following this two well pad, completions operations will move to Dunn County, N.D. where a four-well pad is being prepared for fracture stimulation operations in late July and early August. Oil, gas and water disposal pipelines have been constructed to these wells. In addition, four gross (2 net) wells have been drilled on Kodiak's non-operated lands in Dunn County and completion operations are underway of the first of those wells. Operated and non-operated completion procedures are expected to be continuous through the third quarter.

Kodiak is currently drilling ahead on four wells with two rigs running in McKenzie County, N.D. and two rigs running in Dunn County, N.D. Each of these rigs is drilling on multi-well pads.


"We are pleased to have closed on another high-quality Williston Basin acquisition," said Kodiak's Chairman and CEO Lynn A. Peterson. "The new assets provide Kodiak and its shareholders a meaningful inventory of largely de-risked additional drillable locations for future growth. By expanding our presence in the Basin, we can further improve our field-level efficiencies as we continue to work to improve per-well economics and reduced lease operating expense.

"Vastly improved weather and much better surface conditions are returning to the Williston Basin. Our fracture stimulation operations are underway at Koala without weather or road condition impediments. Our 2011 program is largely on schedule and we expect to see significant changes in our production volumes as we complete several wells in the coming weeks. "

About Kodiak Oil & Gas Corp.

Denver-based Kodiak Oil & Gas Corp. is an independent energy exploration and development company focused on exploring for, developing and producing oil and natural gas in the Williston and Green River Basins in the U.S. Rocky Mountains. For further information, please visit www.kodiakog.com. The Company's common shares are listed for trading on the NYSE Amex exchange under the symbol: "KOG."

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Floodwaters Shut Down 30 Oil Wells in Williston Area

- Floodwaters Shut Down 30 Oil Wells in Williston Area

Friday, May 27, 2011
The Bismarck Tribune, Bismarck, North Dakota
by Lauren Donovan, The Bismarck Tribune, N.D.

About 30 oil wells were shut off ahead of the rising water on the Missouri River west of Williston and a few of those wells are now under water.

John Axtman, who heads the Oil and Gas Division's Williston office, said he started alerting well operators Monday morning to prepare for high water and found that several of them were on top of the situation.

The Missouri River was expected to crest somewhere around 27.5 feet late Wednesday, slightly lower than anticipated.

However, the high water put some wells under water, some partially under water and some are now surrounded by water, Axtman said.

He said well operators shut down the wells, removed any chemicals and motors from the site and drained oil from tank batteries, refilling them with fluid so they'd be too heavy to become buoyant.

Axtman said the wells were primarily older wells, but even at a 50-barrel per day, would cost the well owner a fair amount of money in lost production.

Randy Samuelson, a production manager for Brigham Oil and Gas, said his company shut down one well that's now under water and a couple more are a concern.

"I hope the well restarts easily and that we don't have to rebuild the whole location," Samuelson said.

Samuelson said rebuilding a pad and well site will cost upward of $200,000.

Axtman said damage to the electrical systems will be one of the major repair issues at the flooded wells

While some wells aren't flooded, owners shut them down anyway because roads leading to them are under water and they can't get in to haul out produced oil and waste water, Axtman said.

Water has backflowed across a vast low-lying area south and west of Williston, which is near the confluence of the Missouri and Yellowstone rivers.

Williams County Emergency Manager Mike Hallesy said the revised lowered crest was good news.

"When you're pushing the upper limits, inches seem like miles," he said. "High water pushed all the systems early this week."

He said much of the flooded land behind Williston is either owned by the U.S Army Corps of Engineers, as part of the Garrison Dam project, or managed as a wildlife refuge.

Further back in Trenton, farmers were having a difficult time getting any crops planted with rain and now flooding in the lowlands.

"I'm going to say that river is a couple of miles across," Hallesy said.

Copyright (c) 2011, The Bismarck Tribune, N.D.

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Kodiak to Acquire Assets in Williston Basin

- Kodiak to Acquire Assets in Williston Basin

Monday, May 23, 2011
Kodiak O&G Corp.

Kodiak O&G has entered into a definitive purchase and sale agreement with a private oil and gas company ("Seller") to acquire Bakken/Three Forks leasehold and producing properties in the Williston Basin. The purchase price for the leasehold interests and associated assets is approximately $85.5 million, which will be paid through the issuance of 2.5 million common shares of Kodiak and cash. Kodiak will also assume the Seller's contract for a new build drilling rig and will reimburse the Seller for Seller's $2.5 million cash deposit on the rig. Kodiak expects to fund the cash portion of the of the purchase price with available cash balances and borrowings under its credit facilities.

Upon completion of the transaction, Kodiak would acquire approximately 25,000 net mineral acres in McKenzie County, N.D., adjacent to and proximate to the Company's core Koala, Smokey and Grizzly Project areas. The privately negotiated transaction will expand Kodiak's acreage position in the Williston Basin to approximately 95,000 net acres.

The transaction includes operated working interest in two producing wells currently producing approximately 200 net barrels of oil equivalent per day. Also included in the acquisition are certain surface equipment and pipeline connection facilities that tie into a regional third-party natural gas gathering system.

Kodiak will have operatorship of a majority of the drilling units on the leasehold to be acquired. Including the acquisition, the Company will have over 400 net, largely de-risked, undrilled locations in the Bakken and Three Forks Formations across all of its Williston Basin leasehold.

The drilling rig contract included in the transaction is for a new-build rig that is scheduled for completion in late 2011. The rig is being built to specifications similar to the Company's existing rigs and will include a skid package to facilitate pad drilling. With the addition of this rig, the Company will be operating five drilling rigs, as well as participating as a non-operating partner under leasehold in Dunn County where one rig is presently drilling.

With the expected delivery date of the fifth rig in the fourth quarter 2011, the Company anticipates approximately $10 million of additional CAPEX related to the rig, bringing estimated 2011 capital expenditure guidance for drilling, completions and infrastructure to $230 million.

The acquisition is expected to close on or before July 1, 2011 and is subject to the completion of customary due diligence and closing conditions, including the approval of the NYSE Amex LLC. The effective date for the transaction is April 1, 2011, with any purchase price adjustments to be calculated as of June 30, 2011.

Commenting on the transaction, Kodiak's President and CEO Lynn Peterson said, "Growth through acquisition of contiguous, operated leasehold in the heart of the Bakken play is an important strategy that we have articulated to our shareholders. Today's transaction, when closed, will add significantly to our leasehold and bolster our core operating area in McKenzie County. The acquired lands, which we believe have been substantially de-risked by analog production from other operators, have the advantage of being readily accessible to existing midstream infrastructure which will help in our development plans.

"The addition of a fifth operated rig will not only provide us the opportunity to accelerate our drilling program, but also continue our efforts to gain field-level operational efficiencies. We continue to work closely with our pressure pumping services provider and are comfortable that we can achieve a timely completion schedule as we move towards a full-time dedicated frac team."

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Brigham Accelerates Drilling Ops in Williston Basin

Brigham Accelerates Drilling Ops in Williston Basin

Monday, May 16, 2011
Brigham Exploration Co.

Brigham announced that it is accelerating its pace of drilling operations in the Williston Basin and expects to be at 10 operated rigs by July 2011, which is approximately six months ahead of its previously announced schedule. Brigham also announced that it has further expanded its Williston Basin acreage position, primarily as a result of an acquisition in its core de-risked area, and that it currently holds 378,100 net acres, 224,400 of which are located in its core operating projects. As a result of its drilling acceleration and acreage acquisitions, Brigham announced that it has increased its oil and gas capital expenditure budget to $835.5 million. Brigham also provided an update on its drilling and completion activities in the Williston Basin.

Drilling Acceleration

Brigham announced that it will accelerate its pace of operated drilling activities in the Williston Basin by adding rig eight later this month, rig nine in June 2011 and rig 10 in late June or early July 2011. Its 11th and 12th operated rigs are anticipated to be added in the first quarter 2012 and will be specially built walking rigs capable of maximizing efficiencies associated with smart pad drilling. As a result of the acceleration, Brigham anticipates that an additional 8.2 net wells will be spud in 2011. 

Williston Basin Acreage Acquisition

Brigham has entered into a binding agreement to acquire additional acreage in the Williston Basin, largely in its core de-risked project areas. As a result of the transaction, which is expected to close in approximately 30 days, Brigham will have approximately 378,100 net acres in the Williston Basin, of which 224,400 are located in its core operating areas. Including the aforementioned transaction, Brigham approximates that its core de-risked drilling inventory now totals 783 net remaining drilling locations. 

Updated Oil and Gas Capital Expenditure Budget

As a result of its drilling acceleration and acreage acquisitions Brigham announced that it is increasing its oil and gas capital expenditure budget to $835.5 million in 2011. The bulk of the increase will fund the capital spent in 2011 to drill 8.2 additional net Williston Basin wells, additional acreage acquisitions and the construction of additional support infrastructure to add rail yard facilities west of the Nesson Anticline to create efficiencies for the unloading of oil and gas tubulars and proppant. The expansion of the 2011 capital budget, as is reflected below, is subject to securing additional external capital.

Williston Basin Operated Drilling and Completion Update

Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with four operated rigs drilling in Rough Rider, two operated rigs drilling in Ross and one operated rig drilling in Montana.

In North Dakota, Brigham is currently drilling a Three Forks well in its Rough Rider project area in Williams County and has a Three Forks well waiting on completion in its Ross project area in Mountrail County. Two additional Three Forks wells are anticipated to spud in Rough Rider by mid-summer, both of which are in McKenzie County.

In Montana, Brigham recently completed drilling operations on the Gobbs 17-8 #1H, which is located in Roosevelt County, and will drill two consecutive additional wells in Montana, one of which is located in Roosevelt County and the other in Richland County.

Brigham currently has five wells flowing back, three wells fracing, two of which are being simultaneously fracture stimulated ("zipper fraced"), and 14 wells waiting on completion. To date, Brigham has completed 61 consecutive long lateral high frac stage wells in North Dakota at an average early 24-hour peak rate of approximately 2,880 barrels of oil equivalent.

Brigham is currently running two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. Brigham estimates that it will be capable of fracture stimulating and bringing on line to production a minimum of eight wells per month, with the goal of achieving 10 fracs per month due to the efficiencies gained by zipper fracs.

Management Comments

Bud Brigham, the Chairman, President and CEO, commented, "We're very excited to announce additional acceleration in the Williston Basin and expect to reach 10 operated rigs by July, roughly six months ahead of our previously announced plan. We believe that our smart pad efficiency initiatives, which incorporate zipper fracs, provide us the flexibility to ramp our operated rig count earlier than anticipated without the need to secure incremental pressure pumping capacity. Given our deep de-risked drilling inventory on our growing core acreage in the Williston Basin, this acceleration helps to accrete additional net asset value to our stockholders by pulling forward wells in the current period that would have otherwise been drilled much later. As we progress and gain more experience with the anticipated efficiencies in drilling and completing our wells utilizing our smart pads, we will revisit our production estimates for the full year 2011 and expect to update production guidance on our second quarter conference call."

Bud Brigham continued, "Our Land Department continues to exceed expectations with acreage additions that have increased our overall position in the Williston Basin by 13,800 net acres since last year. The majority of the acreage has been added to our core areas in Rough Rider and Montana at favorable per acre rates relative to other recently announced transactions. In addition, included in the updated land capital budget is capital that we have included to continue with our ground floor leasing efforts for the remainder of 2011. In total, we now estimate that we have 783 net de-risked locations remaining to be drilled. If we and other operators continue to see positive results in the Three Forks in Rough Rider, we believe our core de-risked inventory could be as high as 1,283 net remaining locations."

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Magnum Hunter Acquires Williston 'Bolt On' Acreage

Magnum Hunter Acquires Williston 'Bolt On' Acreage

Tuesday, May 03, 2011
Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. announced Tuesday that the Company's recently acquired wholly owned subsidiary, NuLoch Resources Inc, along with certain of NuLoch's existing joint venture partners, have acquired 16,800 gross acres (5,000 net acres) in a "Bolt On" acquisition located in Burke County, North Dakota.

The acquired acreage is in close proximity to a producing Sanish well, the Gustafson #29-32, where NuLoch owns an 18.6% working interest. As previously announced by NuLoch, the Gustafson #29-32 had a peak 24 hour initial production rate of 937 Boe per day from the Sanish formation.

Management Comments

Glenn Dawson, President of NuLoch, commented, "Leveraging the success of the Gustafson #29-32 well into a now much expanded acreage position in Burke County, North Dakota where we own a larger working interest (up to 30%) is an extremely positive strategic move for our Company. NuLoch has now increased the Company's net acreage position by 75% in this region alone; including one mostly contiguous block of 11,700 net acres to NuLoch's working interest ownership position. We are currently in the process of permitting production spacing units for purposes of drilling wells with two mile horizontal laterals. Today, NuLoch has drilled two wells in Burke County, North Dakota and has an additional six wells planned for the remainder of fiscal year 2011. This type of 'Bolt On' acreage acquisition adjacent to our recent success allows us to continue to maximize our presence in this region of the Williston Basin."

Magnum Hunter Resources Corp. is an independent oil and gas company engaged in the acquisition, development and production of oil and natural gas, primarily in the states of West Virginia, North Dakota, and Texas. The Company is presently active in three of the most prolific shale resource plays in the United States, namely the Marcellus Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.

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American Standard Acquires Acreage in Williston Basin

American Standard Acquires Acreage in Williston Basin

Tuesday, April 12, 2011
American Standard Energy Corp.

American Standard announced the acquisition of approximately 2,780 acres located in Mountrail County of North Dakota's Williston Basin, "the Bakken". The Company paid an average of $669 per acre for a total transaction price of $1,860,858.

The acreage is located within twenty separate mostly contiguous sections of the Parshall and Stanley Fields in the Williston Basin. This location offers the potential for rapid development due to current drilling operations to the north, south and west by EOG, Hunt, Brigham, Marathon and Sinclair among others. The acquisition also expands ASEN's footprint in the historically successful Bakken play, specifically within Mountrail County.

Scott Feldhacker, CEO of American Standard Energy Corp., stated, "We are excited to announce the expansion of our Bakken holdings, specifically in Mountrail County. These acres are well situated among acres held by leading Bakken exploration companies in an area of the play that is thought to be the most prolific and developed to date. This not only expands our holdings in the Bakken but demonstrates to the market and our shareholders the continued implementation of our growth strategy."

The Company's President, Richard MacQueen, also commented, "This transaction once again demonstrates our ability to make quick and successive acquisitions of quality acreage in the Bakken. Not only have we acquired highly desirable Mountrail acreage, we have acquired it at a highly desirable price."

Upon close of this transaction, the Company's Williston Basin, Bakken holdings total approximately 18,900 acres.