Whiting Petroleum Corporation Drilling Operations: One Well Drilling, One Well Being Completed And One Well Producing In The Sanish Field Of Mountrail County, North Dakota. (Photo: Business Wire)

Currently our plans call for the release of three rigs. One in Sanish in early September, one in Hidden Bench in late August and one in Pronghorn in late August. These are generally less efficient rigs when compared to others we have under contract. Due to the efficiency of the rigs we will retain under contract, we anticipate no reduction in the number of wells we intend to drill in 2012.

Other Financial and Operating Results

The following table summarizes the Company’s net production and commodity price realizations for the quarters ended June 30, 2012 and 2011:

				Three Months
				Ended June 30,
Production				2012						2011						Change
Oil (MMBbls)					5.58						4.31					29	%
NGLs (MMBOE)					0.70						0.48					46	%
Natural gas (Bcf)					6.38						6.29					1	%
Total equivalent (MMBOE)					7.34						5.84					26	%
Average Sales Price
Oil (per Bbl):
Price received				$	79.92					$	96.88					(18	%)
Effect of crude oil hedging (1)					(1.35	)					(3.78	)
Realized price				$	78.57					$	93.10					(16	%)
NYMEX oil (per Bbl)				$	93.51					$	102.55					(9	%)
NGLs (per BOE):
Realized price				$	37.45					$	53.22					(30	%)
Natural gas (per Mcf):
Price received				$	3.25					$	4.94					(34	%)
Effect of natural gas hedging (1)					0.06						0.03
Realized price				$	3.31					$	4.97					(33	%)
NYMEX natural gas (per Mcf)				$	2.21					$	4.32					(49	%)

(1)			Whiting realized pre-tax cash settlement losses of $7.5 million on its crude oil hedges and gains of $0.4 million on its natural gas hedges during the second quarter of 2012. A summary of Whiting’s outstanding hedges is included later in this news release.

Second Quarter and First Half 2012 Costs and Margins

A summary of production, cash revenues and cash costs on a per BOE basis is as follows:

				Per BOE, Except Production
				Three Months										Six Months
				Ended June 30,										Ended June 30,
				2012					2011					2012					2011
Production (MMBOE)					7.34					5.84					14.69					11.78
Sales price, net of hedging				$	66.13				$	78.45				$	70.15				$	74.36
Lease operating expense					12.19					12.65					12.54					12.34
Production tax					5.55					5.87					5.81					5.60
General & administrative					3.43					3.58					4.06					3.34
Exploration					1.84					2.12					1.58					2.29
Cash interest expense					2.12					2.26					2.16					2.17
Cash income tax expense					0.15					0.27					0.17					0.31
				$	40.85				$	51.70				$	43.83				$	48.31

2012 Capital Budget

We increased our 2012 capital budget to $1,900 million from $1,800 million. Our revised 2012 capital budget is currently allocated among our major development areas as indicated in the table below:

					2012 CAPEX (MM)					Gross Wells				Net Wells				% of Total
Northern Rockies					$	851				218				124				45%
EOR						223				NA (1)				NA (1)				12%
Permian						97				19				19				5%
Central Rockies						85				20				17				4%
Non-Operated						160				--				--				8%
Land						163				--				--				9%
Exploration Expense (2)						56				--				--				3%
Facilities						215				--				--				11%
Well Work, Misc. Costs, Other						50				--				--				3%
Total Budget					$	1,900 (3)				257				160				100%

(1)			These multi-year CO 2 projects involve many re-entries, workovers and conversions. Therefore, they are budgeted on a project basis not a well basis.
(2)			Comprised primarily of exploration salaries, seismic activities and delay rentals.
(3)			The change in our 2012 capital budget consisted of increases of $50MM in well recompletions and capitalized workovers, $46MM in our EOR projects (primarily Residual Oil Zone capex), $27MM in non-operated drilling and a reduction of $23MM to our facilities budget due to the Belfield plant sale.

Second Quarter and First Half 2012 Drilling and Expenditures Summary

The table below summarizes Whiting’s operated and non-operated drilling activity and capital expenditures for the three and six months ended June 30, 2012:

Gross/Net Wells Completed

Total New

% Success

CAPEX

Producing

Non-Producing

Drilling

Rate

(in MM)

Q2 12

91 / 44.1

0 / 0

91 / 44.1

100% / 100%

$456.0

6M 12

175 / 79.9

0 / 0

175 / 79.9

100% / 100%

$ 984.0

Outlook for Third Quarter and Full-Year 2012

The following table provides guidance for the third quarter and full-year 2012 based on current forecasts, including Whiting’s full-year 2012 capital budget of $1,900 million.

				Guidance
				Third Quarter				Full-Year
				2012				2012
Production (MMBOE)				7.40 - 7.80				29.70 - 30.50
Lease operating expense per BOE				$ 11.90 - $ 12.30				$ 12.20 - $ 12.50
General and admin. expense per BOE				$ 3.30 - $ 3.60				$ 3.60 - $ 3.90
Interest expense per BOE				$ 2.30 - $ 2.50				$ 2.30 - $ 2.60
Depr., depletion and amort. per BOE				$ 22.10 - $ 22.70				$ 21.90 - $ 22.30
Prod. taxes (% of production revenue)				8.3% - 8.5%				8.2% - 8.4%
Oil price differentials to NYMEX per Bbl (1)				($ 9.00) - ($ 10.00)				($ 10.50) - ($ 11.50)
Gas price premium to NYMEX per Mcf (2)				$ 0.60 - $ 0.90				$ 0.60 - $ 0.90

(1)			Does not include the effect of NGLs.
(2)			Includes the effect of Whiting’s fixed-price gas contracts. Please refer to fixed-price gas contracts later in this news release.

Oil Hedges

The following summarizes Whiting’s crude oil hedges as of July 16, 2012:

										Weighted Average					As a Percentage of
Hedge					Contracted Volume					NYMEX Price Collar Range					June 2012
Period					(Bbls per Month)					(per Bbl)					Oil Production
2012
Q3					1,163,440					$68.93 - $106.81 (1)					54.9%
Q4					1,163,157					$68.93 - $106.81 (1)					54.8%
2013
Q1					294,560					$48.17 - $90.71					13.9%
Q2					294,550					$48.17 - $90.71					13.9%
Q3					294,450					$48.16 - $90.70					13.9%
Oct					294,340					$48.15 - $90.69					13.9%
Nov					194,340					$47.96 - $85.90					9.2%
Dec					4,340					$80.00 - $122.50					0.2%
2014
Q1					4,250					$80.00 - $122.50					0.2%
Q2					4,150					$80.00 - $122.50					0.2%
Q3					4,060					$80.00 - $122.50					0.2%
Q4					3,970					$80.00 - $122.50					0.2%

⁽¹⁾ In July, Whiting added two new oil hedges as follows:

Hedge

Contracted Volume

NYMEX Floor

NYMEX Ceiling

Period

(Bbls per Month)

(per Bbl)

(per Bbl)

July – Dec. 2012

75,000

$80.00

$96.45

July – Dec. 2012

100,000

$80.00

$96.70

These new hedges are included in the calculation of the Weighted Average Collar Range shown above.

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