Whiting Petroleum's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Slide #6 are probable and possible reserves in PV10 value. These are also based on independent engineering and we're one of the few companies that provide this information based on independent engineering. Our total probable and possible PV10 value is $3.1 billion. Therefore, our 3P PV10 value is $10.5 billion.

Slide #7 provides Whiting's internal estimate of the resource potential beyond the 3P category. This totals 479 million BOEs for the PV10 value of $4.7 billion.

Our Slide 8 shows how we break out by region the 3P and resource drilling locations that underpin our reserve and resource estimates. Focusing on our Williston Basin area for a moment, we have over 2,500 drilling locations which represents over 10 years of inventory at our current pace.

Moving to Slide 9, you can see our revised 2012 CapEx budget. We've increased our 2012 budget to $1.8 billion from $1.6 billion. Of the incremental $200 million of capital expenditures, $91 million is expected to be invested in non-operated drilling, $37 million is directed to expand drilling in our Big Tex area in the Permian Basin, $36 million is allocated to increase activity in our Redtail Niobrara prospect in the DJ Basin, $27 million is allocated to increase leasehold and $9 million to facility. This revised budget reflects the high pace of activity in the Williston Basin as demonstrated in our strong first quarter production growth and our recent exploration successes in new areas.

On Slide 10, we provide an overview of our Williston Basin plays. We control 701,751 net acres in the play, an increase of more than 20,000 net acres versus our year end update. The line on this map ties for the cross-section on the next slide.

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