Whiting Petroleum Corporation (NYSE: WLL) today announced that
its subsidiary, Whiting Oil and Gas Corporation, sold to Bitter Creek
Pipelines, LLC, a subsidiary of MDU Resources Group Inc., a 50%
ownership interest in Whiting’s Belfield gas processing plant, gas
gathering, oil gathering and related facilities located in Stark County,
North Dakota.
The facilities include a newly constructed, state-of-the-industry
natural gas processing plant and a natural gas gathering pipeline system
connected to the plant. A natural gas residue line that ties into the
Williston Basin Interstate Pipeline Company system (an MDU Resources
subsidiary) is also included, along with a crude oil gathering system, a
crude oil storage terminal and a crude oil pipeline that connects the
terminal to the Bridger Pipeline. Whiting will continue to operate the
facilities.
The Belfield natural gas processing plant has an inlet processing
capacity of 35 million cubic feet per day. The oil terminal is currently
under construction, with completion expected in the third quarter of
2012. It will have a storage capacity of 20,000 barrels of oil.
Under the agreement, Bitter Creek paid 60% of the capital costs of the
project to date and will pay 60% of certain future capital costs with
respect to its 50% ownership. A $66 million payment was made to Whiting
at closing for capital and operating costs to date. Fidelity Exploration
& Production Company, also a subsidiary of MDU, will dedicate gas
production from its development activity in the area to the Belfield gas
plant.
James J. Volker, Whiting’s Chairman and CEO, commented, “We are pleased
to have MDU Resources Group participate in the Belfield gas plant and
the associated facilities and gathering systems. This agreement will
free up capital for Whiting’s high growth drilling operations,
particularly in the Williston Basin, and provide MDU access to
processing and gathering capacity for its development in the area.”
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent
oil and gas company that explores for, develops, acquires and produces
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
fields in Oklahoma and Texas. The Company trades publicly under the
symbol WLL on the New York Stock Exchange.