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Whiting Closes Sale Of Postle Assets For $859.8 Million; Updates Second Quarter 2013 Guidance

Whiting Petroleum Corporation (NYSE: WLL) today closed the previously announced sale to BreitBurn Energy Partners L.P. (NASDAQ: BBEP) of its Enhanced Oil Recovery (EOR) projects in the Postle and NE Hardesty Fields, Texas County, Oklahoma. The sale includes the related Dry Trail plant gathering and processing facilities, oil delivery pipeline, 60% interest in the 120-mile Transpetco CO 2 pipeline, CO 2 supply contracts and certain crude oil swaps. The all cash purchase price was $859.8 million, subject to closing and post-closing adjustments. Whiting expects the net proceeds from the sale to be approximately $850 million after estimated expenses and $836 million after adjustment primarily for two months of net revenues received by Whiting between the effective date and the closing date. Whiting will operate the properties under a transition services agreement until October 31, 2013.

Whiting has determined the appropriate accounting treatment is to include the Postle assets in Whiting’s results of operations through the closing date of July 15, 2013.

Wells Fargo & Co. acted as financial advisor to Whiting with respect to this transaction and Raymond James Financial, Inc. provided a fairness opinion to the Company’s board of directors. Foley & Lardner LLP acted as legal advisor to Whiting with respect to this transaction.

Revised Outlook for Second Quarter

The following table provides updated guidance for the second quarter of 2013 that includes Postle and NE Hardesty Fields as continuing operations. Whiting will provide updated guidance for the full year 2013 in its second quarter earnings press release. Production in the second quarter exceeded the high end of guidance in Whiting’s April 24, 2013 news release primarily due to increasing production at its Redtail, Hidden Bench, Missouri Breaks, Sanish/Parshall and North Ward Estes projects.
Second Quarter

2013 (4)
Production (MMBOE) (1) 8 .50
Lease operating expense per BOE $12 .37
General and admin. expense per BOE (2) $3 .44
Interest expense per BOE $2 .72
Depr., depletion and amort. per BOE $26 .29
Prod. taxes (% of production revenue) 8 .26%

Oil price differentials to NYMEX per Bbl (3)
($5 .08)
Gas price premium to NYMEX per Mcf $0 .17
(1)     The production attributable to the Postle field was 0.7 MMBOE or 7.56 MBOE per day for the second quarter of 2013.
(2) A $21.7 million charge under the Whiting Production Participation Plan related to the Postle sale will be taken in the third quarter of 2013.
(3) Does not include the effect of NGLs.
(4) During the second quarter we will take a $11.6MM charge to exploration expense primarily related to an exploratory Ellenburger test on a small acreage position in Bandera County, Texas. Total exploration expense for the second quarter is $24.3MM.

About Whiting Petroleum Corporation

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, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and its Enhanced Oil Recovery field in Texas. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit

Forward-Looking Statements

This news release contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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.

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