Whiting Petroleum (WLL) is near the top of my "Prime Takeover Targets" list. Right now, I'm planning to promote it to the Sweet 16 on March 1. [HP and PTEN will be moving to our new Drillers Watch List.]
Whiting Petroleum Corporation has budgeted $1.6 billion in capital spending in 2012, with $1.24 billion or 77% allocated for exploration and development activity. The balance of the funds will be used for additional leasehold purchases and infrastructure needed to process and transport production.
Whiting Petroleum Corporation expects that this level of spending will lead to production ranging from 28 million barrels of oil equivalent (BOE) per day to 29.5 million BOE per day in 2012. This would represent growth from 13 to 19% over the 2011 production of 24.8 million BOE.
Bakken
Whiting Petroleum Corporation plans to spend $851 million or just over 53% of its 2012 capital budget in the Northern Rockies. These funds will be used to drill 218 gross wells during the year, with most targeting the Bakken and Three Forks formations.
In 2011, Whiting Petroleum Corporation spent approximately $1.7 billion in capital, with $825.5 million directed towards the Northern Rockies.
2011 Summary
Whiting Petroleum Corporation reported 345.2 million BOE of proved reserves at the end of 2011, a 13.2% increase from the 304.9 million BOE reported a year earlier. The 40.3 million BOE increase in proved reserves means that the company replaced 164% of its 2011 production of 24.8 million BOE.
Whiting Petroleum Corporation might have produced more oil in 2011 if not for problems related to a delay in obtaining rigs needed to service wells in the Sanish field area. The company reported 66 shut-in wells in this area at the beginning of November 2011.
Whiting originally expected to reduce this backlog to 20 at the end of 2011, but due to the delay, the company reported 44 shut-in wells as of Dec. 31, 2011. The company estimates that an additional ten wells will be placed into production by the end of January 2012.
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