Northern Oil and Gas, Inc. (ticker: NOG) expects its Q1 2018 average daily production to increase by 5% to 6% over fourth quarter 2017 – a sequential increase of nearly 1,000 BOEPD.
In a similar vein, Northern will be raising its full year 2018 production guidance, and the company is now expecting average daily production to increase by 18% to 22% over 2017, compared to prior guidance indicating a 16% to 20% increase.
Northern added a total of 3.6 net wells to production in January and February and continues to expect to add between 20 and 22 net wells to production during 2018.
“The momentum of 2017 has extended into the first few months of 2018, resulting in increased first quarter production and higher expectations for 2018,” Northern’s Interim President Brandon Elliott said. “Net well additions during the quarter are running ahead of our expectations, resulting in production ramping more quickly than we had planned. While we still expect to add between 20 and 22 net wells to production this year, we are clearly off to a strong start to 2018.”
Stock offering
The company will be offering $105 million worth of shares of its common stock, with a par value of $0.001 per share. The underwriters will be granted a 30-day option to purchase up to an aggregate value of $15.75 million of additional shares of common stock.
The company said it intends to use the net proceeds from this offering to continue to pursue acquisition opportunities, to fund its drilling program and for general corporate purposes (other than the repayment of debt).
