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News Article | April 28, 2017
Site: www.businesswire.com

„Auf den internationalen Märkten gingen die Umsätze im Vergleich zum Vorquartal um 7 % zurück. Dies lag daran, dass der saisonal bedingte Rückgang von Aktivitäten und Umsätzen vor allem in China, auf dem russischen Festland und in der Nordsee größer war als erwartet. Außerdem beobachteten wir in zentralen Teilen des Nahen und Mittleren Ostens geringere Aktivitäten als im Vorquartal, während Einschränkungen der Produktion, die dem Projekt Shushufindi von Schlumberger Production Management (SPM) in Ecuador auferlegt wurden, ebenfalls negative Auswirkungen auf unsere Ergebnisse im ersten Quartal hatten. Die grundlegenden Aktivitäten und Stimmungen unserer weltweiten Kundenbasis entsprachen jedoch den Erwartungen, wie man zum Beispiel an den unveränderten Umsatztrends im Vergleich zum Vorquartal im restlichen Lateinamerika sowie in Afrika beobachten konnte. Dies bestätigte, dass diese Regionen tatsächlich den tiefsten Punkt des Zyklus erreicht haben. Angesichts der beginnenden Erholung von einem der größten Abwärtstrends unserer Firmengeschichte betrachten wir vier Bereiche als entscheidend für die Wiederherstellung der Stärke der Branche und der Steigerung ihrer Kapazitäten. Dies sind: die Notwendigkeit höherer Ausgaben im Bereich Exploration und Förderung zur Deckung des wachsenden Bedarfs an Kohlenwasserstoff in den nächsten Jahren; die Notwendigkeit, Investitionen in R&E innerhalb der gesamten Lieferkette für Öl und Gas zu schützen und anzuregen; die Notwendigkeit neuer Geschäftsmodelle zur Förderung engerer technischer Zusammenarbeit und kommerzieller Angleichung von Betreibern und Zulieferern; sowie die Notwendigkeit umfassenderer und besser integrierter Technologieplattformen, die Hardware, Software, Daten und Know-how miteinander verbinden. Während unsere Perspektive für die Grundlagen von Angebot und Nachfrage auf den Ölmärkten konstruktiv bleibt, steigt die Wahrscheinlichkeit eines mittelfristigen Lieferdefizits durch die anhaltenden Unterinvestitionen in neue Lieferungen, da zwar Reservoirs erschlossen, die Reserven jedoch nicht in ausreichendem Maß ersetzt werden. Der Markt ist insbesondere weiterhin auf Kerninflationsraten konzentriert, was suggeriert, dass die Produktion tragfähig ist. Bei genauerer Betrachtung der zugrunde liegenden Daten zeigt sich jedoch deutlich, dass sich die erwiesenermaßen erschlossenen Reserven in mehreren wichtigen Ländern außerhalb der OPEC in beschleunigtem Maße erschöpfen. Bei Schlumberger sind wir daher aktiv bestrebt, das Unternehmen an der Spitze einer Branche zu positionieren, die sich weiterentwickeln muss. Wir tun dies, indem wir unsere Geschäftsbasis in proaktiver Weise verwalten und auf den ständigen Druck der Kommodifizierung reagieren und unser Angebot und unsere Leistungen dabei genau auf die vorherrschenden Marktbedingungen abstimmen. Parallel versuchen wir ständig, unsere Möglichkeiten zu erweitern, indem wir ein umfassendes und aktives M&A-Programm verfolgen. Dabei beziehen wir bestehende und neue Kunden ein, um eine engere Kooperation und besser aufeinander abgestimmte Geschäftsmodelle zu etablieren, und wir erweitern unser Angebot vom technischen Support bis hin zu gemeinsamen Investitionen mit unseren Kunden in deren Projekte – dabei immer mit dem Ziel, für mehr Aktivitäten unserer 19 Produkt- und Servicelinien zu sorgen. Angesichts der sorgfältigen Anpassung an die gegenwärtige Situation der Branche bleiben wir zuversichtlich und optimistisch hinsichtlich der Zukunft von Schlumberger, da wir sehr gut wissen, dass es jenseits des aktuellen Marktes vielfache Möglichkeiten für diejenigen Akteure der Branche gibt, die sich neue Wege vorstellen und diese auch einschlagen können.“ Schlumberger und Weatherford haben am 24. März 2017 eine Vereinbarung zur Gründung von OneStimSM bekannt gegeben. Mit diesem Joint Venture sollen Produkte und Services für Fertigstellungen zur Erschließung unkonventioneller Ressourcengebiete in den Bodenmärkten der Vereinigten Staaten und Kanadas bereitgestellt werden. Das Joint Venture wird eines der breitgefächertsten Portfolios für mehrstufige Fertigstellungen auf dem Markt zusammen mit einer der größten Hydraulic-Fracturing-Flotten in der Branche anbieten. Schlumberger und Weatherford halten einen Eigentumsanteil von 70 bzw. 30 % an dem Joint Venture. Die Transaktion soll in der zweiten Jahreshälfte 2017 abgeschlossen werden und unterliegt behördlichen Zulassungen sowie weiteren üblichen Abschlussbedingungen. Am 12. April 2017 gaben Schlumberger und YPF die Unterzeichnung einer vorläufigen Vereinbarung für ein Joint Venture in einem Ölschiefer-Pilotprojekt im Block Bandurria Sur in Vaca Muerta in der Provinz Neuquén bekannt. Schlumberger wird Reservoirkenntnisse, integrierte Feldstudien, Services im Bereich Bohrungen und Fertigstellungen sowie die dazugehörige Infrastruktur anbieten. Teil der Vereinbarung ist eine stufenweise Investition von 390 Mio. USD durch Schlumberger. Dazu gehört ein signifikanter praktischer Beitrag der Services des Unternehmens zu Marktpreisen. Nach Erfüllung bestimmter Abschlussbedingungen wird Schlumberger einen Anteil von 49 % an dem Joint Venture übernehmen, wobei YPF die verbleibenden 51 % innehaben und den Block betreiben wird. Am 20. April 2017 stimmte der Verwaltungsrat (Board of Directors) des Unternehmens einer vierteljährlichen Dividende von 0,50 USD je in Umlauf befindlicher Stammaktie zu, zahlbar am 14. Juli 2017 an zum 1. Juni 2017 eingetragene Aktieninhaber. Die Umsätze in der Region Lateinamerika waren im Vergleich zum Vorquartal unverändert, da das Umsatzwachstum in Brasilien durch einen Umsatzrückgang auf dem GeoMarket Peru, Kolumbien und Ecuador aufgewogen wurde, wo sich Einschränkungen der Produktion, die dem Projekt Shushufindi von SPM in Ecuador auferlegt wurden, auf die Ergebnisse auswirkten. Die Umsätze auf dem GeoMarket Argentinien, Bolivien und Chile waren ebenfalls niedriger, getrieben durch einen Rückgang der Bohr- und Fracturing-Aktivitäten aufgrund der frühen Fertigstellung einer Reihe von Projekten. Das Umsatzwachstum in Brasilien wurde durch stärkere Aktivitäten des Bereichs OneSubsea und vermehrte Multiclient-Lizenzverkäufe von WesternGeco in Erwartung der baldigen 14. Angebotsrunde getrieben. Die Umsätze in der Region Europa/GUS/Afrika nahmen im Vergleich zum Vorquartal um 10 % ab, vor allem aufgrund saisonal bedingter Rückgänge in Russland und Kasachstan, die stärker waren als sonst und sich auf sämtliche Produktlinien auswirkten, während der GeoMarket Großbritannien und Kontinentaleuropa ebenfalls geringere Aktivitäten und reduzierte Software-Lizenzverkäufe von SIS verzeichnete. Reduzierte Aktivitäten von OneSubsea aufgrund der Fertigstellung eines Projekts im Golf von Guinea und geringere Produktverkäufe von Surface Systems in der Region trugen ebenfalls zu dem Rückgang bei. Die Umsätze aus dem GeoMarket Subsahara-Afrika blieben im Wesentlichen unverändert, da der starke Anstieg der Festlandaktivitäten im Kongo, im Tschad und in Äthiopien durch den Abbruch eines Bohrprojekts vor der Küste Angolas und durch Projektverzögerungen vor der Küste des Kongo aufgewogen wurde. Die Umsätze in der Region Naher und Mittlerer Osten sowie Asien nahmen im Vergleich zum Vorquartal um 7 % ab, in erster Linie aufgrund von Preisdruck und geringeren Bohr- und Hydraulic-Fracturing-Aktivitäten auf dem Festland im Nahen und Mittleren Osten. Die Umsätze in Australien nahmen aufgrund reduzierter Offshore-Aktivitäten ebenfalls ab, während Unwetter auf dem Festland sämtliche Produkt- und Servicelinien beeinträchtigten. Die Umsätze auf dem chinesischen Festland waren aufgrund der saisonal bedingten Verlangsamung im Winter geringer, die sich hauptsächlich auf die Aktivitäten der Bereiche Production, Drilling sowie der Cameron Group auswirkten. Die Umsätze der Reservoir Characterization Group in Höhe von 1,6 Mrd. USD, von denen 78 % aus den internationalen Märkten stammten, nahmen im Vergleich zum Vorquartal um 3 % ab. Dies lag an Projektabschlüssen aus einem abnehmenden Auftragsbestand des Bereichs Testing & Process Systems und wurde teilweise durch weitere Fortschritte bei Anlageprojekten für frühzeitige Förderung in Kuwait und Ägypten aufgewogen. Die Umsätze des Bereichs Wireline stiegen aufgrund von Explorationsaktivitäten mit vermehrtem Infrastruktureinsatz in Nordamerika, teilweise aufgewogen durch saisonal bedingte Umsatzrückgänge in Russland. Nach den üblichen, jedoch verhaltenen Umsätzen zum Jahresende im vorherigen Quartal wirkten sich niedrigere Software-Lizenzverkäufe von SIS ebenfalls auf die Ergebnisse der Gruppe aus. Im bulgarischen Teil des Schwarzen Meeres nahm Total E&P Bulgaria die erste Explorationsbohrung in der Tiefsee vor. Schlumberger ISM führte auf der Bohranlage acht getrennte Produktlinien und koordinierte über 100 Mitarbeiter, die an dem Projekt beteiligt waren. Durch enge Kooperation mit Total E&P Bulgaria konnte das ISM-Team Gelegenheiten zur Bohroptimierung ermitteln, durch die während der Bohrtätigkeiten an der Bohrlochsohle signifikante Ergebnisse erzielt werden konnten. Total E&P Bulgaria drückte Wertschätzung für das kooperative Arbeitsumfeld aus, das Schlumberger in das Projekt eingebracht hatte. In den VAE beauftragte die Sharjah National Oil Corporation WesternGeco mit der Durchführung einer seismischen 3D-Erhebung über 483 Quadratkilometer für den Teil ihrer Onshore-Konzession in Schardscha. Für das Projekt soll die Plattformtechnologie UniQ* für seismische Erhebungen auf dem Festland genutzt werden, um die langen Offsets handhaben zu können, die erforderlich sind, um Abbildungen der komplexen geologischen Überschiebungen in der Region zu erstellen. Die Erhebung stellt eine Erweiterung der 2011 durchgeführten früheren Erhebung dar, in deren Rahmen die Effektivität der UniQ-Plattformtechnologie demonstriert wurde. Die Datenverarbeitung soll im Bearbeitungszentrum in Abu Dhabi mittels rückwärtiger Zeitmigration erfolgen, um Abbildungen dieser komplexen Geologie zu erstellen. In Kasachstan nutzt Wireline den fotorealistischen Reservoirgeologie-Service Quanta Geo* zur Auswertung einer dichten Karbonatformation für Karachaganak Petroleum Operating BV, ein Konsortium aus Eni, Shell, Chevron, Lukoil und KazMunaiGas. Die Servicetechnologie Quanta Geo nutzt eine innovative Sonde mit erhöhter Sensibilität, um vertikale und laterale Eigenschaften der Bohrung zu erkennen. Der Kunde erhielt Bilder mit höherer Qualität, was mit ölhaltigem Schlamm nicht möglich ist. So waren strukturelle und stratigrafische Interpretationen mit höherer Zuversicht möglich. Die Umsätze der Drilling Group in Höhe von 2,0 Mrd. USD, von denen 74 % aus den internationalen Märkten stammten, nahmen gegenüber dem Vorquartal um 1 % ab, da die starken Aktivitäten beim Richtbohren auf dem nordamerikanischen Festland durch geringere Bohraktivitäten und Preisdruck in den internationalen Gebieten aufgewogen wurden. Die Verbesserung der Umsätze in Nordamerika rührte von verstärkter Absorption der Produkte und Services von Drilling & Measurements, Bits & Drilling Tools und M-I SWACO her. Die Abnahme der Erträge in den internationalen Gebieten lag an den geringeren Umsätzen aus Produkten von M-I SWACO in der Region Naher und Mittlerer Osten sowie Asien, an Preisdruck und einer ungünstigen Mischung von Aktivitäten für Drilling & Measurements im Nahen und Mittleren Osten sowie an geringeren Aktivitäten von Integrated Drilling Services (IDS) auf dem GeoMarket Großbritannien und Kontinentaleuropa. Im britischen Teil der Nordsee entwickelte IDS eine individuelle Lösung für Statoil, um spezielle Schwierigkeiten in einem Schwerölfeld zu meistern. Das Mariner-Feld zeichnet sich durch Reservoirs in geringer Tiefe aus, und deren Erschließung durch 60 lange, nahe beieinander liegende horizontale Bohrungen geplant ist. Ein integriertes Team mit Bohrexperten aus mehreren Technologiezentren trug zur Planung einer individuellen Montage an der Bohrlochsohle bei, mit der eine aggressive Neigung von bis zu 40° im 24-Zoll-Abschnitt verwirklicht werden konnte. Das steuerbare Rotary-System PowerDrive Archer* für hohe Neigungen sowie phasenweise einsetzbare Aufweitköpfe waren zwei der Technologien, die bei dieser kundenspezifischen Lösung genutzt wurden. Im ersten Quartal 2017 realisierte der Kunde die 24-Zoll-Abschnitte von vier Bohrungen und konnte sämtliche Projektziele in Bezug auf Bohrungen, Zeit und Kosten erreichen. In Norwegen vergab Statoil Petroleum AS einen IDS-Vertrag für die Bohrkampagne im Sleipner-Gebiet im norwegischen Teil der Nordsee an Schlumberger. Zu dem Vertrag gehört eine innovative Struktur für Leistungsanreize, mit der die Interessen von Betreiber und Serviceanbieter besser aufeinander abgestimmt werden. Dazu gehören die Bereitstellung von Services von Drilling & Measurements, Well Services und M-I SWACO für zwei Bohrungen und eine optionale Bohrung. Die Tätigkeiten werden voraussichtlich im Mai 2017 aufgenommen. In Katar vergab die RasGas Company Limited einen Fünfjahresvertrag mit fünf optionalen Einjahresverlängerungen an Schlumberger, in dessen Rahmen eine umfangreiche Kombination von Bohrtechnologien für bis zu 70 Bohrungen im North-Feld bereitgestellt wird. Teil des Vertrags sind zum Beispiel ein MicroScope*-Service von Drilling & Measurements für Resistivität und Bildgebung während des Bohrens, die abnutzungsresistente und höchst belastungsfähige PDC-Cutter-Technologie FireStorm* von Bits & Drilling Tools, der instrumentierte Wireline-Interventionsservice ReSOLVE* von Wireline, der Schiefer-Inhibitor HydraHib von M-I SWACO sowie die moderne Glasfasertechnologie für Verlustkontrolle CemNET und die Stimulationsservices OpenPath von Well Services. Das North-Feld ist das größte reine Erdgasfeld der Welt und enthält rund 10 % der weltweit bekannten Reserven. Vor der Küste Aserbaidschans nutzte Drilling & Measurements eine Kombination von Technologien für die State Oil Company of Azerbaijan (SOCAR) bei der Durchführung einer anspruchsvollen J-förmigen Bohrung im Bulla-Deniz-Feld. Teil des komplexen Plans war es nicht nur, die anspruchsvolle Lithologie zu meistern, durch die der Bohrfortschritt (Rate of Penetration, ROP) auf bis zu 3,1 Fuß pro Stunde verlangsamt wird, sondern auch, gleichzeitig einen 7218 Fuß langen Abschnitt des Bohrlochs zu bohren und zu vergrößern. Zu der Kombination von Technologien gehörten die steuerbare Rotary-Technologie PowerDrive X6* mit dem für Array-Resistivität kompensierten Service arcVISION*, der Service TeleScope* für Hochgeschwindigkeitstelemetrie während des Bohrvorgangs sowie ein hydraulisch expandierbarer Bohrlochräumer Rhino* XS. Der Kunde konnte durch Erreichen der Bohrziele in 39 statt der ursprünglich eingeplanten 79 Tage ohne jegliche unproduktive Zeit 14,4 Mio. USD einsparen. Im Süden von Texas stellte IPS eine Kombination aus Technologien und Services für Lonestar Resources bereit, um die Ölförderung und Feldökonomie bei 18 Bohrungen im Schiefergebiet Eagle Ford Shale zu verbessern. IPS konnte Pläne für Bohrungen, Stimulation und Fertigstellungen in langen Seitenbohrungen optimieren, um die Stützmitteleinbettung in weicherem Gestein zu überwinden, die den Reservoirkontakt mit dem Bohrloch abklemmte, und um die Ausdehnung der Höhe von Frakturen hin zu einer nahen Verwerfung zu begrenzen. Zu diesen Technologien gehörten ThruBit*-Services für Aufzeichnungen durch die Bohrspitze, die Software Kinetix Shale* für reservoirzentrierte Stimulation bis hin zur Förderung sowie der Fracturing-Service Broadband Sequence*. Infolgedessen konnten in diesen Bohrungen im Vergleich zu Ausgleichsbohrungen in zwei anderen Feldern bis zu 86 % mehr Kohlenwasserstoff pro 1000 Fuß der Seitenbohrung gefördert werden. Die Whiting Petroleum Corporation schloss kürzlich mit dem auflösbaren Plug-and-Perf-System Infinity* eine Kampagne aus 13 Bohrungen in North Dakota ab. Whiting plante die Aussetzung der Förderung aus zahlreichen Bohrungen in der Region, während Fracturing-Tätigkeiten und Reinigungsarbeiten nach dem Fracturing durchgeführt wurden. Mit dem Infinity-System konnten die Reinigungszeiten im Vergleich zu herkömmlichen Pfropftechnologien reduziert werden. Dies führte bei 13 Bohrungen zu merklichen Zeiteinsparungen und zur Wiederherstellung der vollen Fördertätigkeit in dem Feld. Im Irak nutzte Well Services eine Kombination von Technologien für BP Iraq N.V., um Herausforderungen bei einer Wasserinjektionsbohrung in einem Karbonatreservoir im Rumaila-Feld zu überwinden. Die Kombination aus einem aufpumpbaren CoilFLATE*-Packer für aufgerollte flexible Stahlrohre mit dem Instrument ACTive PTC* für Druck-, Temperatur- und Gehäusekragenerkennung in Echtzeit wurde bereitgestellt, um selektiv Zonen mit geringer Permeabilität zu stimulieren. Infolgedessen stieg die Wasserinjektivität auf 4600 bbl/d und ermöglichte dem Kunden eine zusätzliche Ölförderung von 3000 bbl/d. Die Umsätze der Cameron Group in Höhe von 1,2 Mrd. USD, wovon 62 % von den internationalen Märkten stammten, sanken aufgrund des Rückgangs beim Volumen der Projekte von OneSubsea und geringerer Produktverkäufe bei Surface Systems im Vergleich zum Vorquartal um 9 %, teilweise aufgewogen durch ein leichtes Wachstum bei Valves & Measurement. Der Umsatzrückgang für OneSubsea lag am sinkenden Volumen der Projekte in Brasilien und an reduzierten Aktivitäten im US-amerikanischen Golf von Mexiko. Die Umsätze von Surface Systems waren in den Regionen Europa/GUS/Afrika und Lateinamerika niedriger, wodurch das zweistellige Umsatzwachstum auf dem nordamerikanischen Festland aufgrund zunehmender Mietaktivitäten für Fracturing und Flowback mehr als aufgewogen wurde. Valves & Measurement verbuchte auf dem US-amerikanischen Festland ein zweistelliges Wachstum sowie eine drastische Veränderung der Buchungen, teilweise aufgewogen durch eine Verlangsamung der Umsätze aus technisierten Ventilen in Europa/GUS/Afrika. Noble Energy Mediterranean Ltd. vergab einen Vertrag für die Lieferung von horizontalen Förderbäumen mit 10.000 psi, an die Förderbäume montierten Steuerelementen, Steuerelementen unabhängig von den Förderbäumen und Topside-Steuerelementen für das Leviathan Field Development Project in der Tiefsee des östlichen Mittelmeers an OneSubsea. Für das untermeerische Steuersystem werden herkömmliche elektrohydraulische Steuerelemente und eine Glasfaserkommunikationsverbindung mit den Topside-Steuerelementen genutzt. Die Auswahl dieses Förderbaum stimmt mit früheren Auftragsvergaben überein. So erhält der Kunde größere operative Flexibilität und eine standardisierte Wartung. Zusätzlich zu den Finanzergebnissen, die in Übereinstimmung mit den in den USA allgemein anerkannten Grundsätzen der Rechnungslegung (Generally Accepted Accounting Principles, GAAP) ermittelt wurden, umfasst diese Pressemitteilung zum ersten Quartal 2017 auch nicht GAAP-konforme Finanzkennzahlen (gemäß Definition nach Verordnung G der US-Börsenaufsichtsbehörde SEC). Der Nettogewinn ohne Belastungen und Gutschriften sowie davon abgeleitete Messwerte (einschließlich verwässerter Gewinn je Aktie ohne Belastungen und Gutschriften, Nettogewinn aus Minderheitsbeteiligungen ohne Belastungen und Gutschriften sowie effektiver Steuersatz ohne Belastungen und Gutschriften) sind nicht GAAP-konforme Finanzkennzahlen. Die Geschäftsführung ist Ansicht, dass der Ausschluss von Belastungen und Gutschriften von den Finanzkennzahlen sie dazu befähigen, die Geschäftstätigkeit von Schlumberger im Vergleich zwischen den einzelnen Perioden effektiver zu bewerten und geschäftliche Trends zu identifizieren, die andernfalls durch die ausgeschlossenen Posten überdeckt werden würden. Diese Kennzahlen werden von der Unternehmensleitung auch als Leistungsindikatoren zur Festlegung bestimmter Leistungsvergütungen genutzt. Die vorstehenden nicht GAAP-konformen Kennzahlen sollten als Ergänzung zu anderen Finanzkennzahlen oder Leistungsindikatoren angesehen werden, die in Übereinstimmung mit GAAP erstellt werden, und dürfen keinesfalls als Ersatz dafür oder als jenen überlegen erachtet werden. Nachfolgend dargestellt ist die Abstimmung dieser nicht GAAP-konformen Kennzahlen mit den vergleichbaren GAAP-Kennzahlen. Schlumberger ist der weltweit führende Anbieter von Technologien zur Charakterisierung von Lagerstätten sowie für Bohr-, Förderungs- und Verarbeitungsvorgänge in der Erdöl- und Erdgasindustrie. Schlumberger ist in über 85 Ländern tätig, beschäftigt rund 100.000 Mitarbeiter aus über 140 Staaten und liefert das in der Branche umfassendste Sortiment an Produkten und Dienstleistungen von der Exploration bis zur Förderung sowie Lösungen von der Pore bis zur Pipeline, mit denen die Kohlenwasserstoffgewinnung optimiert und die Leistungsfähigkeit von Lagerstätten gewährleistet werden kann. Schlumberger veranstaltet am Freitag, 21. April 2017, eine Telefonkonferenz zur Besprechung der Medienmitteilung zum Quartalsbericht und der Geschäftsprognosen. Die Telefonkonferenz beginnt um 8:30 Uhr Eastern Time bzw. 14.30 Uhr MEZ. Um an dieser öffentlich zugänglichen Konferenz teilzunehmen, rufen Sie bitte ungefähr zehn Minuten vor Beginn die Konferenzzentrale an, entweder unter +1 (800) 288-8967 für Anrufe aus Nordamerika oder unter +1 (612) 333-4911 für Anrufe von außerhalb Nordamerikas. Fragen Sie nach dem „Schlumberger Earnings Conference Call“. Nach dem Ende der Telefonkonferenz steht Ihnen bis zum 21. Mai 2017 eine Wiederholung zur Verfügung. Wählen Sie dazu bitte +1 (800) 475-6701 für Anrufe aus Nordamerika oder +1 (320) 365-3844 für Anrufe von außerhalb Nordamerikas, und geben Sie den Zugangscode 417634 ein. Dieser Ergebnisbericht für das erste Quartal 2017 sowie unsere anderen Mitteilungen enthalten „zukunftsbezogene Aussagen“ im Sinne des US-amerikanischen Wertpapierrechts, die jegliche Aussagen umfassen, die keine historischen Tatsachen sind, wie zum Beispiel unsere Prognosen oder Erwartungen zu den Geschäftsaussichten, zur Steigerung der Aktivitäten von Schlumberger insgesamt und jedes einzelnen Segments (sowie für bestimmte Produkte oder in bestimmten geografischen Regionen innerhalb der einzelnen Segmente), zur Erdöl- und Erdgasnachfrage und einem entsprechenden Anstieg der Förderung, zu den Preisen von Erdöl und Erdgas, zu Verbesserungen von Betriebsverfahren und Technologien, inklusive unseres Transformationsprogramms, zu Kapitalaufwendungen durch Schlumberger und in der Erdöl- und Erdgasindustrie, zu den Geschäftsstrategien der Kunden von Schlumberger, zu den erwarteten Vorteilen der Cameron-Transaktion, zum Erfolg der Joint Ventures und Zusammenschlüsse von Schlumberger sowie zu der zukünftigen globalen Wirtschaftslage und zukünftigen Geschäftsergebnissen. Diese Aussagen unterliegen Risiken und Unsicherheiten. Dazu gehören u. a. die Weltwirtschaftslage, Veränderungen bei Ausgaben für Exploration und Förderung aufseiten der Kunden von Schlumberger sowie Veränderungen der Intensität der Exploration und Erschließung von Erdöl und Erdgas, allgemeine wirtschaftliche, politische und geschäftliche Situationen in Schlüsselregionen der Welt, Währungsrisiken, Preisdruck, Wetter und sonstige jahreszeitlich bedingte Faktoren, betriebliche Änderungen, Verzögerungen oder Stornierungen, Rückgänge bei Förderungen, Änderungen von behördlichen Bestimmungen und Rechtsvorschriften, einschließlich der Vorschriften zur Erdöl- und Erdgasexploration in Offshore-Gebieten, zu radioaktiven Strahlenquellen, Sprengmitteln, Chemikalien, Hydraulic-Fracturing-Dienstleistungen und Initiativen zum Klimaschutz, aber auch die Möglichkeit, dass Technologien neuen Herausforderungen bei der Exploration nicht gerecht werden, dass Cameron nicht erfolgreich integriert und die erwarteten Synergien nicht realisiert werden oder dass wichtige Mitarbeiter nicht beim Unternehmen bleiben, sowie sonstige Risiken und Unsicherheiten, die in diesem Ergebnisbericht für das erste Quartal 2017 und auf unseren aktuellen Formblättern 10-K, 10-Q und 8-K aufgeführt sind, die bei der US-amerikanischen Börsenaufsichtsbehörde SEC eingereicht wurden. Falls eines oder mehrere dieser und anderer Risiken und Unwägbarkeiten (oder die Folgen solcher Veränderungen von Geschehnissen) eintreten oder sich unsere grundlegenden Annahmen als unzutreffend erweisen sollten, können die tatsächlichen Ergebnisse wesentlich von unseren Darstellungen in zukunftsgerichteten Aussagen abweichen. Schlumberger verneint jegliche Absicht zur Überarbeitung oder öffentlichen Aktualisierung solcher Aussagen infolge neuer Informationen, zukünftiger Ereignisse oder anderweitiger Gegebenheiten und lehnt jegliche derartige Verpflichtung ab.


News Article | May 4, 2017
Site: www.businesswire.com

AUSTIN, Texas--(BUSINESS WIRE)--Whiting USA Trust II (OTC: WHZT) announced today that the Trust will make a distribution to unitholders in the second quarter of 2017, which relates to net profits generated during the first quarterly payment period of 2017. Unitholders of record on May 20, 2017 (which results in an effective record date of May 19, 2017 due to the 20th of May falling on a non-trading day) will receive a distribution of $0.145591 per unit, which is payable on or before May 30, 2017 (the “May 2017 distribution”). As of the date of this press release, 99.9% of the Trust’s total 18,400,000 units outstanding were held by Cede & Co. (The Depository Trust Corporation’s nominee) as the official unitholder of record. The effective record date of May 19, 2017 for this distribution is only applicable to unitholders of record such as Cede & Co., and the ex-date, as set by The Financial Industry Regulatory Authority, Inc., or FINRA, actually determines which street name holders will be eligible to receive the May 2017 distribution. Sales volumes, net profits and selected performance metrics for the quarterly payment period were: The Trust’s net profits interest (“NPI”), which is the only asset of the Trust other than cash reserves held for future Trust expenses, represents the right to receive 90% of the net proceeds from Whiting Petroleum Corporation’s interests in certain existing oil and natural gas properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States. The Trust will wind up its affairs and terminate shortly after the earlier of (a) the NPI termination date or (b) the sale of the net profits interest. The NPI termination date is the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE (10.61 MMBOE to the 90% net profits interest) have been produced from the underlying properties and sold, which is estimated to be July 31, 2023 based on the Trust’s year-end 2016 reserve report. After the termination of the Trust, it will pay no further distributions. The Trust is required to sell the NPI and terminate if cash proceeds to the Trust from the net profits interest are less than $2.0 million for each of any two consecutive years (the “Annual Cash Proceeds Termination Clause”). During the year ended December 31, 2016, the Trust received cash proceeds of $1.9 million from the net profits interest. However, during the first two calendar quarters of 2017, the Trust will receive $4.4 million in cash proceeds from the NPI and therefore, the Trust will not be required to sell the NPI and terminate pursuant to the Annual Cash Proceeds Termination Clause as of December 31, 2017. The market price of the Trust units will decline to zero at the termination of the Trust, which will occur around or shortly after the termination or sale of the net profits interest. As described in the Trust’s public filings, since the assets of the Trust are depleting assets, a portion of each cash distribution paid on the Trust units, if any, should be considered by investors as a return of capital, with the remainder being considered as a return on investment. As of March 31, 2017, on a cumulative accrual basis, 7.15 MMBOE (67%) of the Trust’s total 10.61 MMBOE have been produced and sold or divested. Based on the Trust’s reserve report for the underlying properties as of December 31, 2016, the Trust’s 10.61 MMBOE are projected to be produced by July 31, 2023, shortly after which the Trust would terminate. Additionally, the 2016 year-end reserve report reflects expected annualized production decline rates of approximately 12.1% for oil and 15.4% for gas between 2017 and 2023, which estimates are derived from NYMEX oil and gas prices of $42.75 per Bbl and $2.49 per MMbtu as calculated pursuant to current SEC and FASB guidelines. As of April 28, 2017, the NYMEX oil and gas prices were $49.33 per Bbl and $3.28 per MMBtu, respectively. Although oil and gas prices have stabilized since the lows experienced during the 2016 distribution periods, oil and gas prices historically have been volatile and may fluctuate widely in the future. The Trust is unable to predict future commodity prices, and it appears likely that future distributions to Trust unitholders, if any, will continue to be impacted by lower oil and natural gas prices. Lower commodity prices are likely to cause a reduction in the amount of oil, natural gas and natural gas liquids that is economic to produce from the underlying properties, which may in turn extend the length of time required to produce the Trust’s 10.61 MMBOE. Alternatively, higher commodity prices may potentially result in an increase in the amount of oil, natural gas and natural gas liquids that is economic to produce from the underlying properties, however, higher prices could result in increases in costs of materials, services and personnel. Furthermore, cash distributions to unitholders may decline at a faster rate than the rate of production due to industry-specific risks and uncertainties such as (i) oil and gas price declines, (ii) fixed and semi-variable costs not decreasing as fast as production volumes or (iii) expected future development being delayed, reduced or cancelled. This press release contains forward-looking statements, including all statements made in this press release other than statements of historical fact. No assurances can be given that such statements will prove to be correct. The estimated time when the Trust will terminate is based on the Trust’s reserve report of the underlying properties as of December 31, 2016 and is subject to the assumptions contained therein. Additionally, the estimated time when the market price of the Trust units should decline to zero is based on the economic rights of the Trust units. The trading price of the Trust units is affected by factors outside of the control of the Trust or Whiting, including actions of market participants, among others. Other important factors that could cause actual results to differ materially include expenses of the Trust, fluctuations in oil and natural gas prices, uncertainty of estimates of oil and natural gas reserves and production, uncertainty as to the timing of any such production, risks inherent in the operation, production and development of oil and gas properties, and future production and development costs. Statements made in this press release are qualified by the cautionary statements made in this press release. The Trustee does not intend, and assumes no obligation, to update any of the statements included in this press release.


DENVER--(BUSINESS WIRE)--Whiting’s (NYSE: WLL) production in the second quarter 2017 totaled 10.3 million barrels of oil equivalent (MMBOE), comprised of 83% crude oil/natural gas liquids (NGLs). Second quarter 2017 production averaged 112,660 barrels of oil equivalent per day (BOE/d). 10 out of 22 wells completed during the quarter commenced production in June. The production benefit of these wells is expected to be experienced mainly during the second half of 2017. Whiting’s depreciation, depletion and amortization (DD&A) rate of $21.46 per BOE came in below the low end of guidance for $22.25 – $23.25 per BOE. This reflects the impact of strong reserve bookings in the Williston Basin area where the Company recorded a 59 MMBOE increase in proved reserves from upward performance revisions, extensions and discoveries. All other metrics were within guidance. James J. Volker, Whiting’s Chairman, President and CEO, commented, “One of our priorities is to maintain a strong balance sheet while delivering high returns and sustainable growth to investors. We plan to reduce capital spending to $950 million while achieving 14% production growth from first quarter to fourth quarter 2017. This is a testament to the high quality of our asset base, which is also evident in the strong 23% growth in proved reserves from year-end 2016 levels. A large component of this growth was driven by the effect of enhanced completions in the Williston Basin.” Mr. Volker continued, “We continue to bring on enhanced completion wells in the Williston Basin with production profiles in the 1-1.5 MMBOE type curve range. These wells deliver strong rates of return, even at a $40 NYMEX oil price. In summary, the steps we took to strengthen our balance sheet and improve well productivity through enhanced completions empowers us to deliver strong growth at current commodity prices.” The following table summarizes the operating and financial results for the second quarter of 2017 and 2016, including non-cash charges recorded during those periods: The following table summarizes the first six months operating and financial results for 2017 and 2016, including non-cash charges recorded during those periods: Whiting is revising its capital budget and production guidance. The Company’s new capital budget of $950 million allocates $518 million to the Williston Basin area, $332 million to the DJ Basin area, $62 million to non-operated activity and $38 million to exploration, facilities and land. Whiting plans to drop two rigs, one in the Williston Basin and one in the DJ Basin, and run a four-rig program (all Williston Basin) through year-end. The Company plans to put 82 wells on production in the Redtail area in the third and fourth quarters and anticipates an inventory of 38 DUC (drilled uncompleted) wells at year-end. In the Williston Basin, Whiting plans to put 54 wells on production in the third and fourth quarters and anticipates an inventory of 55 DUC wells at year-end. The Company’s new production guidance forecasts full-year average production of 43.6 - 44.3 MMBOE (119,450 - 121,370 BOE/d). At the midpoint of guidance, Whiting projects third quarter average volumes of approximately 118.0 MBOE/d and fourth quarter volumes of approximately 133.5 MBOE/d. The fourth quarter rate represents a 14% production increase relative to first quarter levels. As of June 30, 2017, Whiting’s proved reserves are estimated at 755 MMBOE, a 23% increase from year-end 2016 levels of 616 MMBOE. The mid-year reserve estimate was audited by the Company’s third-party reservoir engineering firm Cawley, Gillespie & Associates. In July 2016, Whiting completed the sale of its interest in the North Ward Estes field and associated assets located in Ward and Winkler Counties, Texas. In addition to the $300 million cash purchase price, the buyer agreed to pay Whiting $100,000 for every one cent ($0.01) that the average of the NYMEX WTI crude oil futures contract price for the period of August 2018 through July 2021 is above $50.00/Bbl on June 28, 2018. On July 19, 2017, the buyer made a $35 million cash payment to Whiting to settle this contingent feature. The contract settlement amount would have been $4.2 million based on the NYMEX forward strip pricing for crude oil as of July 19, 2017. Whiting controls 743,667 gross (449,857 net) acres in the Williston Basin and 159,994 gross (134,771 net) acres at its Redtail Niobrara/Codell play in the DJ Basin. In the second quarter 2017, total net production for the Company averaged 112,660 BOE/d. The Bakken/Three Forks play in the Williston Basin averaged 105,475 BOE/d. The Redtail Niobrara/Codell play in the DJ Basin averaged 6,610 BOE/d. New Williston Basin Enhanced Completions in Williams County Tracking above 1.0 MMBOE Type Curve. In June 2017, Whiting completed its three-well Evitt 14-12 pad and its three-well Evitt 34-12 pad in Williams County, North Dakota. The wells are located in the southeastern portion of Whiting’s Williams County acreage. The Evitt 14-12 pad was completed with an average of 9.3 million pounds of sand per well and averaged 37 stages. The Evitt 34-12 pad was completed with an average of 10.1 million pounds of sand per well and averaged 42 stages. On average, the two pads are tracking above a 1.0 MMBOE type curve. In April, Whiting completed two enhanced completion wells on its Northern 31-30 pad, which is located approximately 15 miles northwest of the Evitt pads. The two wells were completed with an average of 11.6 million pounds of sand per well and 43 stages and are tracking above a 1.0 MMBOE type curve. Whiting estimates it has approximately 1,650 gross future drilling locations in Williams County. 69 Enhanced Completion Wells Drilled Across Williston Basin Since January 2016 Exceeding 1.0 MMBOE Type Curve. Since January 2016, Whiting has drilled 69 enhanced completion wells that incorporate sand volumes of 7.0 million pounds or more per well, additional stages and new diverter technology. On average, these wells are producing above a 1.0 MMBOE type curve. The wells span Dunn, McKenzie, Mountrail and Williams Counties. Within these counties, the associated well pads are located across multiple operating areas that bracket Whiting’s acreage position. The Company believes this demonstrates the broad prospectivity of its acreage for enhanced completions. Whiting estimates it has approximately 4,500 gross future drilling locations in Dunn, McKenzie, Mountrail and Williams Counties. Initial Enhanced Completion Results at DJ Basin Redtail Play Outperforming. In June and July 2017, Whiting began flowing back the seven-well Razor 12-H pad and the eight-well Razor 12-G pad at its DJ Basin Redtail play in Weld County, Colorado. The pads target the Niobrara “A,” “B” and “C” zones and Codell/Fort Hays formations. The Razor 12-H pad is testing higher sand volumes. It incorporated 8.0 million pounds of sand per well versus a typical well design of 4.0 to 5.0 million pounds. Early results are encouraging with the production profile of the 12-H pad outperforming the offsetting 12-G pad that was completed with 5.0 million pounds of sand per well. Other Financial and Operating Results The following table summarizes the Company’s net production and commodity price realizations for the quarters ended June 30, 2017 and 2016: Second Quarter and First Half 2017 Costs and Margins A summary of production and cash revenues and cash costs on a per BOE basis is as follows: Second Quarter and First Half 2017 Completions and Expenditures Summary The table below summarizes Whiting’s operated and non-operated completion activity and capital expenditures for the three and six months ended June 30, 2017. Outlook for Third Quarter and Full-Year 2017 The following table provides guidance for the third quarter and full-year 2017 based on current forecasts, including Whiting’s full-year 2017 capital budget of $950 million: Whiting is more than 64% hedged for the remainder of 2017 as a percentage of June 2017 production. The following summarizes Whiting’s crude oil hedges as of July 19, 2017: For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 to be filed with the Securities and Exchange Commission. The Company’s management will host a conference call with investors, analysts and other interested parties on Thursday, July 27, 2017 at 11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) to discuss Whiting’s second quarter 2017 financial and operating results. Participants are encouraged to pre-register for the conference call by clicking on the following link: http://dpregister.com/10109215. Callers who pre-register will be given a unique telephone number and PIN to gain immediate access on the day of the call. Those without internet access or unable to pre-register may join the live call by dialing: (877) 328-5506 (U.S.); (866) 450-4696 (Canada) or (412) 317-5422 (International) to be connected to the call. Presentation slides will be available at http://www.whiting.com by clicking on the “Investor Relations” box on the menu and then on the link titled "Presentations & Events." A telephonic replay will be available beginning one to two hours after the call on Thursday, July 27, 2017 and continuing through Thursday, August 3, 2017. You may access this replay at (877) 344-7529 (U.S.); 855-669-9658 (Canada) or (412) 317-0088 (International) and enter the pass code 10109213. You may also access a web archive at http://www.whiting.com beginning one to two hours after the conference call. Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that develops, produces, acquires and explores for crude oil, natural gas and natural gas liquids primarily in the Rocky Mountains region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Montana and the Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com. This news release contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, but are not limited to: declines in or extended periods of low oil, NGL or natural gas prices; our level of success in exploration, development and production activities; risks related to our level of indebtedness, ability to comply with debt covenants and periodic redeterminations of the borrowing base under our credit agreement; impacts to financial statements as a result of impairment write-downs; our ability to successfully complete asset dispositions and the risks related thereto; revisions to reserve estimates as a result of changes in commodity prices, regulation and other factors; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures; inaccuracies of our reserve estimates or our assumptions underlying them; risks relating to any unforeseen liabilities of ours; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; unforeseen underperformance of or liabilities associated with acquired properties; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; availability of, and risks associated with, transport of oil and gas; our ability to drill producing wells on undeveloped acreage prior to its lease expiration; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; the potential impact of changes in laws, including tax reform, that could have a negative effect on the oil and gas industry; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry; cyber security attacks or failures of our telecommunication systems; and other risks described under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2016. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.


DENVER--(BUSINESS WIRE)--Whiting Petroleum Corporation (NYSE: WLL) today announced that Mike Stevens, Whiting’s Senior Vice President and CFO, will present at the Bank of America Merrill Lynch 2017 Energy Credit Conference in New York City. Mr. Steven’s presentation will begin at 2:20 p.m. Eastern Time on Tuesday, June 6, 2017. Mr. Steven’s live presentation may be accessed on the Internet by logging onto the following link: http://www.veracast.com/webcasts/baml/energycredit2017/id21108103582.cfm. The presentation materials and link to the webcast will also be available on Whiting’s website at www.whiting.com beginning June 6, 2017. You may access the presentation by clicking on the “Investor Relations” box on the menu and then on the link titled "Webcasts." Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountains region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.


DENVER--(BUSINESS WIRE)--Whiting Petroleum Corporation (NYSE:WLL) will release its second quarter 2017 financial and operating results on Wednesday, July 26, 2017 after the market closes. A conference call with investors, analysts and other interested parties is scheduled for 11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) on Thursday, July 27, 2017 to discuss Whiting's second quarter 2017 financial and operating results. Participants are encouraged to pre-register for the conference call by clicking on the following link: http://dpregister.com/10109215. Callers who pre-register will be given a unique telephone number and PIN to gain immediate access on the day of the call. Those without internet access or unable to pre-register may join the live call by dialing: (877) 328-5506 (U.S.); (866) 450-4696 (Canada) or (412) 317-5422 (International) to be connected to the call. Presentation slides will be available at http://www.whiting.com by clicking on the “Investor Relations” box on the menu and then on the link titled "Presentations & Events." A telephonic replay will be available beginning one to two hours after the call on Thursday, July 27, 2017 and continuing through Thursday, August 3, 2017. You may access this replay at (877) 344-7529 (U.S.), (855) 669-9658 (Canada) or (412) 317-0088 (International) and enter the replay access code 10109215. Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.


DENVER--(BUSINESS WIRE)--Whiting Petroleum Corporation (the “Company”) (NYSE:WLL) has an agreement to sell its Fort Berthold Indian Reservation area assets located in Dunn and McLean Counties, North Dakota to RimRock Oil & Gas Williston, LLC. The cash purchase price is $500 million, subject to customary adjustments. Whiting will use the net proceeds from the sale to repay $500 million of its current $550 million bank debt. The effective and closing date of the sale is September 1, 2017. James J. Volker, Whiting's Chairman, President and CEO, commented, "The price received for these properties, which are largely non-operated, highlights the quality of Whiting’s Bakken/Three Forks assets. The Fort Berthold properties represent only approximately 7% of Whiting’s second quarter total production. The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston Basin, where the Company estimates it has 4,850 future gross drilling locations.” The properties span 29,637 net acres, 29 non-operated drilling spacing units and 17 operated. Net daily production from the properties averaged 7,785 BOE/d in the second quarter of 2017. Lease operating expense (LOE) for the properties averaged approximately $12.60 per BOE for the 12 months ending June 30, 2017. Whiting’s other operated Bakken production averaged $7.50 per BOE. Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com. This news release contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, but are not limited to: the satisfaction of the conditions to the sale of the Fort Berthold Indian Reservation area assets and other risks related to the completion of the sale of such assets and actions related thereto; the ability of Whiting and RimRock Oil & Gas Williston, LLC to complete the sale of the Fort Berthold Indian Reservation area assets on anticipated terms and schedule; declines in, or extended periods of low oil, NGL or natural gas prices; our level of success in exploration, development and production activities; risks related to our level of indebtedness, ability to comply with debt covenants and periodic redeterminations of the borrowing base under our credit agreement; impacts to financial statements as a result of impairment write-downs; our ability to successfully complete asset dispositions and the risks related thereto; revisions to reserve estimates as a result of changes in commodity prices, regulation and other factors; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures; inaccuracies of our reserve estimates or our assumptions underlying them; risks relating to any unforeseen liabilities of ours; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; unforeseen underperformance of or liabilities associated with acquired properties; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; availability of, and risks associated with, transport of oil and gas; our ability to drill producing wells on undeveloped acreage prior to its lease expiration; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; the potential impact of changes in laws, including tax reform, that could have a negative effect on the oil and gas industry; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry; cyber security attacks or failures of our telecommunication systems; and other risks described under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2016. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.


Petro River Oil Corp. (OTC: PTRC) just announced it made a significant oil discovery. Read more of the announcement below. In a recent OGMarketReport.com article, while most oil and gas industry headlines are focusing on the ability to make a profit with oil trading at near rock bottom prices, why is a discovery important? Previously announced oil discoveries in Alaska by Spanish oil company Repsol SA and Hurricane Energy's claim of 'largest undeveloped (oil) discovery on the U.K. continental shelf,' rocketed the valuation of each company. Each of these discoveries will not impact the actual supply chain until 2021 for Alaska production and 2019 for the UK discovery, meaning additional carrying costs on top of other major company legacy costs. Petro River, with a market cap of $13.5 million, has no legacy costs and no debt and is looking at potential discovery reserves of over 21 mm barrels from its Oklahoma and California projects that can be added to the supply chain as quickly as Petro can drill. Other oil companies making news include Approach Resources (NASDAQ: AREX) and Comstock Holdings Companies as they both beat Street expectations. Read more at OGMarketReport.com Petro River Oil Corp. announced yesterday a new oil field discovery in its 106,500 acre concession in Osage County, Oklahoma upon successfully drilling the Chat 2-11 exploration well. The Chat 2-11 was drilled to a depth of 2,800 feet into the Mississippian Chat. Initial results indicate up to 20 feet of oil productive formation, following flow and fracking tests, the Company plans to confirm IP rates. Additional wells are being planned to evaluate the extent of this chat field discovery. Read this and more news for Petro River Oil Corp at: http://www.marketnewsupdates.com/news/ptrc.html The Company is also planning to drill the Channel 1-3 to test Red Fork channel sand and the Chat 1-30 to test a separate chat field. These structures were identified utilizing 3D seismic technology, indicating a potential of over 2.5 million barrels of oil. "This discovery confirms that our exploration technique utilizing 3D seismic is working," said Stephen Brunner, President of Petro River. "We plan to spud two other wells, the Channel 1-3 based on the data from logs of the Channel 1-11 which found approximately 45 feet of tight non-productive Red Fork sand, and the Chat 1-30 a separate chat structure test. Also, we plan to shoot more seismic along the southern part of our concession later this year." In other industry financial reporting and developments: Approach Resources Inc. (NASDAQ: AREX) closed up over 13% on Monday at $2.58 trading over 1.6 million shares by the market close. AREX last week reported results for first quarter 2017. Ross Craft, Approach's Chairman and CEO commented, "We accomplished a great deal this quarter and our transformation is on track. We reduced our senior notes outstanding by approximately $145 million and increased our financial flexibility with the completion of a strategic recapitalization that passed with 82% shareholder approval. The resulting interest expense savings, coupled with improving commodity prices, allow us to substantially increase our capital budget to $50 million - $70 million in 2017, to be entirely funded out of operating cash flow. Chesapeake Energy Corporation (NYSE: CHK) closed up slightly on Monday at $5.55 trading over 39 million shares by the market close. Chesapeake Energy also reported last week its financial and operational results for the 2017 first quarter plus other recent developments. Doug Lawler, Chesapeake's Chief Executive Officer, commented, "Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end. We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance. Whiting Petroleum Corporation (NYSE: WLL) closed up over 4% on Monday at $8.62 trading over 14.2 million shares by the market close. Whiting's production in the first quarter 2017 totaled 10.6 million barrels of oil equivalent (MMBOE), comprised of 84% crude oil/natural gas liquids (NGLs). First quarter 2017 production averaged 117,360 barrels of oil equivalent per day (BOE/d), at the high end of guidance. Lease operating expense (LOE) benefited from a comprehensive water-handling plan and a maintenance program that has reduced well downtime across Whiting's properties. Depreciation, depletion and amortization (DD&A) benefited from enhanced completions and the sale of the Company's North Dakota midstream assets. Oil differentials benefited from the addition of new pipeline infrastructure in the Williston Basin. Oasis Petroleum Inc. (NYSE: OAS) closed up slightly on Monday as well at $12.12 trading over 11.8 million shares by the market close. Oasis Petroleum announced after the close yesterday its intention to contribute a portion of its midstream assets to a Master Limited Partnership (MLP) and sell a minority interest in the MLP in an initial public offering. The MLP is intended to support Oasis's strategy to grow its midstream business. The midstream assets that are expected to be contributed to the MLP are located in the Williston Basin area of North Dakota and/or Montana and include a portion of Oasis's crude oil gathering and transportation system, natural gas gathering and processing system and water handling systems. DISCLAIMER: MarketNewsUpdates.com (MNU) is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. MNU is NOT affiliated in any manner with OGMarketReport.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OGMarketReport.com are solely those of OGMarketReport.com and are not shared by and do not reflect in any manner the views or opinions of MNU. The companies that are discussed herein may or may not have approved the statements made in this release. MNU is not liable for any investment decisions by its readers or subscribers. 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Petro River Oil Corp. (OTC: PTRC) just announced it made a significant oil discovery. Read more of the announcement below. In a recent OGMarketReport.com article, while most oil and gas industry headlines are focusing on the ability to make a profit with oil trading at near rock bottom prices, why is a discovery important? Previously announced oil discoveries in Alaska by Spanish oil company Repsol SA and Hurricane Energy's claim of 'largest undeveloped (oil) discovery on the U.K. continental shelf,' rocketed the valuation of each company. Each of these discoveries will not impact the actual supply chain until 2021 for Alaska production and 2019 for the UK discovery, meaning additional carrying costs on top of other major company legacy costs. Petro River, with a market cap of $13.5 million, has no legacy costs and no debt and is looking at potential discovery reserves of over 21 mm barrels from its Oklahoma and California projects that can be added to the supply chain as quickly as Petro can drill. Other oil companies making news include Approach Resources (NASDAQ: AREX) and Comstock Holdings Companies as they both beat Street expectations. Read more at OGMarketReport.com Petro River Oil Corp. announced yesterday a new oil field discovery in its 106,500 acre concession in Osage County, Oklahoma upon successfully drilling the Chat 2-11 exploration well. The Chat 2-11 was drilled to a depth of 2,800 feet into the Mississippian Chat. Initial results indicate up to 20 feet of oil productive formation, following flow and fracking tests, the Company plans to confirm IP rates. Additional wells are being planned to evaluate the extent of this chat field discovery. Read this and more news for Petro River Oil Corp at: http://www.marketnewsupdates.com/news/ptrc.html The Company is also planning to drill the Channel 1-3 to test Red Fork channel sand and the Chat 1-30 to test a separate chat field. These structures were identified utilizing 3D seismic technology, indicating a potential of over 2.5 million barrels of oil. "This discovery confirms that our exploration technique utilizing 3D seismic is working," said Stephen Brunner, President of Petro River. "We plan to spud two other wells, the Channel 1-3 based on the data from logs of the Channel 1-11 which found approximately 45 feet of tight non-productive Red Fork sand, and the Chat 1-30 a separate chat structure test. Also, we plan to shoot more seismic along the southern part of our concession later this year." In other industry financial reporting and developments: Approach Resources Inc. (NASDAQ: AREX) closed up over 13% on Monday at $2.58 trading over 1.6 million shares by the market close. AREX last week reported results for first quarter 2017. Ross Craft, Approach's Chairman and CEO commented, "We accomplished a great deal this quarter and our transformation is on track. We reduced our senior notes outstanding by approximately $145 million and increased our financial flexibility with the completion of a strategic recapitalization that passed with 82% shareholder approval. The resulting interest expense savings, coupled with improving commodity prices, allow us to substantially increase our capital budget to $50 million - $70 million in 2017, to be entirely funded out of operating cash flow. Chesapeake Energy Corporation (NYSE: CHK) closed up slightly on Monday at $5.55 trading over 39 million shares by the market close. Chesapeake Energy also reported last week its financial and operational results for the 2017 first quarter plus other recent developments. Doug Lawler, Chesapeake's Chief Executive Officer, commented, "Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end. We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance. Whiting Petroleum Corporation (NYSE: WLL) closed up over 4% on Monday at $8.62 trading over 14.2 million shares by the market close. Whiting's production in the first quarter 2017 totaled 10.6 million barrels of oil equivalent (MMBOE), comprised of 84% crude oil/natural gas liquids (NGLs). First quarter 2017 production averaged 117,360 barrels of oil equivalent per day (BOE/d), at the high end of guidance. Lease operating expense (LOE) benefited from a comprehensive water-handling plan and a maintenance program that has reduced well downtime across Whiting's properties. Depreciation, depletion and amortization (DD&A) benefited from enhanced completions and the sale of the Company's North Dakota midstream assets. Oil differentials benefited from the addition of new pipeline infrastructure in the Williston Basin. Oasis Petroleum Inc. (NYSE: OAS) closed up slightly on Monday as well at $12.12 trading over 11.8 million shares by the market close. Oasis Petroleum announced after the close yesterday its intention to contribute a portion of its midstream assets to a Master Limited Partnership (MLP) and sell a minority interest in the MLP in an initial public offering. The MLP is intended to support Oasis's strategy to grow its midstream business. The midstream assets that are expected to be contributed to the MLP are located in the Williston Basin area of North Dakota and/or Montana and include a portion of Oasis's crude oil gathering and transportation system, natural gas gathering and processing system and water handling systems. DISCLAIMER: MarketNewsUpdates.com (MNU) is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. MNU is NOT affiliated in any manner with OGMarketReport.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OGMarketReport.com are solely those of OGMarketReport.com and are not shared by and do not reflect in any manner the views or opinions of MNU. The companies that are discussed herein may or may not have approved the statements made in this release. MNU is not liable for any investment decisions by its readers or subscribers. MNU and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. MNU is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed MNU has been compensated one thousand nine hundred dollars for coverage of the current commentary covering issued by Petro River Oil by a non-affiliated third party. MNU HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MNU undertakes no obligation to update such statements.


News Article | February 21, 2017
Site: www.businesswire.com

DENVER--(BUSINESS WIRE)--Whiting’s (NYSE: WLL) production in the fourth quarter 2016 totaled 10.9 million barrels of oil equivalent (MMBOE), comprised of 84% crude oil/natural gas liquids (NGLs). Fourth quarter 2016 production averaged 118,890 barrels of oil equivalent per day (BOE/d), above the high end of guidance (117,390 BOE/d) and an increase from the third quarter when adjusted for asset sales.(1) Enhanced completions contributed to production exceeding guidance and to lease operating expense (LOE) per BOE coming in at the low end of guidance. LOE also benefited from the sale of higher cost properties and continued efficiency gains in the field. James J. Volker, Whiting’s Chairman, President and CEO, commented, “Whiting delivered another strong quarter. Production grew sequentially when adjusted for asset sales and exceeded the high end of our forecast. Operating expense was at the low end of guidance. We achieved this while generating operating cash flow that exceeded our capital expenditures. Also, our efforts to reshape our balance sheet came to fruition this quarter. We announced the $375 million sale of our North Dakota midstream assets. We received the proceeds on January 3, 2017 and used $275 million to redeem all of our outstanding 2018 notes on February 2, 2017. Since the beginning of 2016, we have sold $725 million of non-core properties and used the proceeds to improve our balance sheet. Asset sales combined with innovative debt exchange transactions and free cash flow reduced debt by $2.4 billion or 42% since March 2016.” Mr. Volker continued, “In 2016, we worked to position the company for strong growth through balance sheet improvement and a focus on operational improvements that resulted in a 42% increase in per well productivity over 2015. In 2017, we are focused on increasing production, reserves and net asset value through a capital efficient plan that further enhances our balance sheet metrics through growth. We project a total capital budget of $1.1 billion in 2017. Based on this capital plan, we forecast that production grows 23% from first quarter to fourth quarter 2017.” The following table summarizes the operating and financial results for the fourth quarter of 2016 and 2015, including non-cash charges recorded during those periods: The following table summarizes the operating and financial results for the full year 2016 and 2015, including non-cash charges recorded during those periods: As previously announced, Whiting closed the sale of its North Dakota midstream assets in January 2017 and received approximately $375 million of proceeds. It subsequently used $275 million of these proceeds to redeem all of its outstanding 2018 Senior Subordinated Notes on February 2, 2017. The remainder was applied to reduce the outstanding balance on the Company’s credit facility. Whiting projects a 2017 capital budget of $1.1 billion. The Company plans to invest $1,060 million of the 2017 capital budget on development activity in its core Williston Basin and DJ Basin areas, which represents 96% of the total budget. It plans to run five rigs and spend $580 million on development activities in the Williston Basin where it targets the Bakken/Three Forks formations and run one rig and spend $420 million on development activities in the DJ Basin where it targets the Niobrara “A”, “B” and “C” zones and the Codell/Fort Hays formations. The DJ Basin activities include the planned completion of 105 drilled uncompleted (DUC) wells. In addition, $60 million has been budgeted for non-operated drilling located primarily in the Williston Basin. Based on the 2017 capital budget, the Company forecasts 2017 production of 45.0 to 46.0 MMBOE (123,000 to 126,000 BOE/d). Production is forecast to increase to a fourth quarter average rate of 140,000 BOE/d. This equates to a 23% projected increase from first quarter to fourth quarter 2017. At December 31, 2016, Whiting’s proved reserves totaled 615.5 MMBOE. 47% of year-end 2016 proved reserves were proved developed reserves and 81% of year-end 2016 proved reserves were crude oil and NGLs. Adding back asset sales that totaled 114.4 MMBOE and applying a price neutral (equivalent to the SEC 2015 price deck case) scenario, proved reserves would have totaled 851.5 MMBOE. (1) This represents an increase of 4% relative to year-end 2015 despite a 76% decrease in capital spending from $2.3 billion in 2015 to $554 million in 2016. Whiting controls 735,968 gross (443,839 net) acres in the Williston Basin and 157,178 gross (132,184 net) acres at its Redtail play in the DJ Basin. In the fourth quarter 2016, total net production for the Company averaged 118,890 BOE/d. The Bakken/Three Forks play in the Williston Basin averaged 108,850 BOE/d, an increase of 3% over the third quarter. The Redtail Niobrara/Codell play in the DJ Basin averaged 9,210 BOE/d. Increase in 90-Day Average Production Rate per Well Reflects Quality of Whiting Acreage and Technology. In 2016, Whiting’s 90-day production rate per well in the Williston Basin averaged 1,057 BOE/d. This was a 42% increase over 2015 and an 84% increase over 2014. The Company attributes this primarily to an improvement in completion technology in combination with high-graded drilling activity. Since 2014, Whiting has more than doubled the sand volume per well from 3.6 million pounds to over 8 million pounds. It has also increased the number of effective entry points through the addition of perforation clusters and the application of diverter technology. These technology improvements create a more extensive fracture network near the wellbore that enhances well productivity and ultimate recovery from the reservoir. Williston Basin Large Volume Completions Continue to Exceed Expectations. During the fourth quarter, Whiting completed 25 new wells that produced for 30 or more days. The average 30-day production rate for these wells was 1,754 BOE/d. The average well was completed with 8.5 million pounds of sand. Four of the wells completed during the quarter incorporated over 10 million pounds of sand. On average, these wells are tracking a 1.5 MMBOE type curve. Testing Enhanced Completions and Longer Laterals at Redtail. In January 2017, Whiting put a completion crew to work at its Redtail play in Weld County, Colorado that targets the Niobrara “A”, “B” and “C” zones and the Codell/Fort Hays formations. The Company plans to test enhanced completion designs that incorporate additional frac stages (50 versus a standard of 40) and higher sand volumes (8 million pounds versus a standard of 4.5 million pounds) in a 7,500’ lateral. It also plans to complete approximately 34 longer lateral (10,000’ versus a standard of 7,500’) wells in 2017. Other Financial and Operating Results The following table summarizes the Company’s net production and commodity price realizations for the quarters ended December 31, 2016 and 2015: A summary of production, cash revenues and cash costs on a per BOE basis is as follows: The table below summarizes Whiting’s operated and non-operated drilling activity and capital expenditures for the three months and full-year ended December 31, 2016. Outlook for First Quarter and Full-Year 2017 The following table provides guidance for the first quarter and full-year 2017 based on current forecasts, including Whiting’s full-year 2017 capital budget of $1.1 billion: Whiting is 53% hedged for 2017 as a percentage of December 2016 production. The following summarizes Whiting’s crude oil hedges as of January 3, 2017: For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016, to be filed with the Securities and Exchange Commission. The Company’s management will host a conference call with investors, analysts and other interested parties on Wednesday, February 22, 2017 at 11:00 a.m. EST (10:00 a.m. CST, 9:00 a.m. MST) to discuss Whiting’s fourth quarter and full year 2016 financial and operating results. Participants are encouraged to pre-register for the conference call by clicking on the following link: http://dpregister.com/10097021. Callers who pre-register will be given a unique telephone number and PIN to gain immediate access on the day of the call. Those without internet access or unable to pre-register may join the live call by dialing: (877) 328-5506 (U.S.); (866) 450-4696 (Canada) or (412) 317-5422 (International) to be connected to the call. Presentation slides will be available at http://www.whiting.com by clicking on the “Investor Relations” box on the menu and then on the link titled "Presentations & Events." A telephonic replay will be available beginning one to two hours after the call on Wednesday, February 22, 2017 and continuing through Wednesday, March 1, 2017. You may access this replay at (877) 344-7529 (U.S.); 855-669-9658 (Canada) or (412) 317-0088 (International) and enter the pass code 10097021. You may also access a web archive at http://www.whiting.com beginning one to two hours after the conference call. Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountains region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Montana and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com. This news release contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, but are not limited to: declines in or extended periods of low oil, NGL or natural gas prices; our level of success in exploration, development and production activities; risks related to our level of indebtedness, ability to comply with debt covenants and periodic redeterminations of the borrowing base under our credit agreement; impacts to financial statements as a result of impairment write-downs; our ability to successfully complete asset dispositions and the risks related thereto; revisions to reserve estimates as a result of changes in commodity prices, regulation and other factors; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures; inaccuracies of our reserve estimates or our assumptions underlying them; risks relating to any unforeseen liabilities of ours; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; unforeseen underperformance of or liabilities associated with acquired properties; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; availability of, and risks associated with, transport of oil and gas; our ability to drill producing wells on undeveloped acreage prior to its lease expiration; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry; the potential impact of changes in laws, including tax reform, that could have a negative effect on the oil and gas industry; cyber security attacks or failures of our telecommunication systems; and other risks described under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the period ended September 30, 2016 and Annual Report on Form 10-K for the period ended December 31, 2015. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.


DENVER--(BUSINESS WIRE)--Whiting Petroleum Corporation (NYSE: WLL) today announced that it gave notice to mandatorily convert $716.8 million of outstanding mandatory convertible notes into shares of Whiting common stock on December 19, 2016. Prior to such notice, holders of $4.2 million of outstanding mandatory convertible notes had voluntarily converted such notes into shares of Whiting common stock. As a result of the mandatory conversion and the voluntary conversions, the Company will have issued approximately 77.6 million shares of its common stock to retire all of the $721.0 million of mandatory convertible senior notes and mandatory convertible senior subordinated notes identified in the chart below. James J. Volker, Whiting’s Chairman, President and CEO, commented, “Upon the completion of this conversion, we will reduce our debt by $721 million. After the conversion and the sale of our North Dakota midstream assets for $375 million that we anticipate to close in early 2017, we will have reduced our debt by $2.3 billion or 41% since March 31, 2016, approximately equal to all the debt assumed in the Kodiak acquisition. We expect these accomplishments to provide Whiting with greater financial flexibility to maximize the value of its premier assets in the North Dakota Bakken / Three Forks and DJ Basin Niobrara / Codell plays where we have 11,676 potential gross drilling locations. As can be seen in our corporate presentation, based on the latest 12 months of data, we rank as the top Bakken operator in terms of initial 90-day average production rates for all operators with more than 10 wells. Such results do not fully reflect the impact of our recent super, 10+ million pound sand volume completions where our initial Bakken / Three Forks wells are tracking at or above a 1.5 million BOE (barrel oil equivalent) type curve for a completed well cost of only $7.5 million. Having achieved this debt reduction target, our enhanced balance sheet and strong hedge position for 2017 should allow us to rapidly develop our top-tier properties and accelerate our growth.” The following table sets forth the aggregate principal amount of each series of mandatory convertible notes that have been or will be converted into shares of Whiting common stock. Pursuant to the terms of the convertible notes, holders of the mandatory convertible notes will also receive accrued and unpaid interest to the conversion date. Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com. This news release contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, but are not limited to: declines in or extended periods of low oil, NGL or natural gas prices; the ability to successfully complete the sale of Whiting’s North Dakota midstream assets on anticipated terms and timetable; our level of success in exploration, development and production activities; risks related to our level of indebtedness, ability to comply with debt covenants and periodic redeterminations of the borrowing base under our credit agreement; impacts to financial statements as a result of impairment write-downs; our ability to successfully complete asset dispositions and the risks related thereto; revisions to reserve estimates as a result of changes in commodity prices, regulation and other factors; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures; inaccuracies of our reserve estimates or our assumptions underlying them; risks relating to any unforeseen liabilities of ours; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; the potential impact of federal debt reduction initiatives and tax reform legislation being considered by the U.S. Federal Government that could have a negative effect on the oil and gas industry; unforeseen underperformance of or liabilities associated with acquired properties; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; availability of, and risks associated with, transport of oil and gas; our ability to drill producing wells on undeveloped acreage prior to its lease expiration; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry; cyber security attacks or failures of our telecommunication systems; and other described under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the period ended September 30, 2016 and Annual Report on Form 10-K for the period ended December 31, 2015. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.

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