This is what I wrote for the Wednesday post before WLL reported:

Other WLL Comments:

• The name is cheap at 6.1x 2009 and 3.8x 2010 CFPS.
• WLL has drilled some of the biggest IP rate wells in the Bakken to date with some over the 3,000 BOEpd and one well at 3,889 BOEpd (Rigel State 11-16Hand another at 4,570 BOEpd (Richardson Federal 11-9H) in its portion of the Sanish field.
  • Average EUR 850,000 BOE
  • Completed cost: $5.5 to $6 mm as drilling days have fallen from 60 to 41 in the latest wells. Expect this to continue to fall on an apples to apples basis (maybe not on absolute but new wells may have longer laterals and more frac stages).
• WLL should be close to completing a 65,000 bopd line out of the Sanish, they’ve had a gas line in place since last summer.
• March production was 54.5 MBOE per day vs 54.3 MBOE pd in 1Q
• They had a number of outside operated wells that the operator had deferred completion on in the first quarter, many of which should have been completed in 2Q.
• Earnings out after the close today, conference call tomorrow at 11 am EST.

And here are comments following their 2Q earnings release:

WLL Reports Beats; Guides Production Higher, Costs Lower

The 2Q Numbers:

• Production of 5.033 MMBOE came in above the top end of the guidance range of 4.8 to 5.0 MMBOE.
  • This up 3% from 1Q09’s production of 4.89 MMBOE and
  • 25% from 2Q08 levels. Note also that oil production was up 35% yoy so they are getting oilier at the right time.
• Revenue of $230 mm vs $192 mm expected
  • Company wide differentials improved from 1Q09
• Cash Costs: Slightly better than expected
  • LOE of $11.44 per BOE vs $12.20 per BOE guidance and $12.47 in 1Q09
• EPS of ($1.83) reported but this includes a non cash loss of $1.89 vs ($0.27) expected
• CFPS of $2.16 vs $1.74 expected

Guidance:

• Production:
  • 3Q09: Initiated at 4.8 to 5.0 million barrels of oil equivalent (MMBOE)
  • 2009: Increased from a range of 18.90 to 19.30 MMBOE to a range of 19.20 to 19.60 MMBOE.