Whiting Petroleum Sees 2012 Capital Budget of $1,600M and Production Guidance of 28.0-29.5 MMBOE
As of December 31, 2011, Whiting Petroleum Corporation's (NYSE: WLL) estimated proved reserves totaled 345.2 million barrels of oil equivalent, an increase of 13.2% over year-end 2010 proved reserves of 304.9 MMBOE. Approximately 86% of our 2011 year-end reserves were classified as oil/natural gas liquids and 69% were classified as proved developed. The 40.3 MMBOE increase in proved reserves replaced 164% of the Company's 2011 production of 24.8 MMBOE.
The Company's estimated year-end 2011 proved reserves had a pre-tax PV10% value of $7.4 billion, of which approximately 97% came from properties located in Whiting's Rocky Mountain, Permian Basin and Mid-Continent core areas. The following table summarizes Whiting's estimated proved reserves as of December 31, 2011 by core area.
Whiting forecasts a capital budget of $1,600 million in 2012, which should approximate its 2012 estimated discretionary cash flow. Whiting expects to allocate $1,236 million of the 2012 capital budget to exploration and development activity, $136 million for land, and $228 million for facilities. Based on this level of capital spending, we forecast production of 28.0 MMBOE - 29.5 MMBOE for 2012, an increase of 13% - 19% over our 2011 production of 24.8 MMBOE.
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