Reserves
Whiting’s total proved reserves at December 31, 2008 were 239.1 MMBOE, of which 75% was oil and NGLs. We invested 59% of our $947.4 million exploration and development expenditures in 2008 to non-proved reserves. This investment generated 29.9 MMBOE of proved reserve additions in 2008. Most of the proved reserve additions at December 31, 2008 came from our Bakken play in North Dakota. An estimated 23.6 MMBOE of Bakken proved reserves were booked at year-end 2008, of which 63% were proved, developed and producing, 37% were proved undeveloped, 70% were attributed to the Sanish field and 30% to Whiting’s interests in the Parshall field. Whiting’s December 31, 2008 reserve estimates were prepared by the independent petroleum engineering consulting firm of Cawley,Gillespie & Associates, Inc.
Production
Whiting produced a total of 12.4 million barrels of oil (including NGLs) and 30.4 Bcf of gas in 2008. On an equivalent basis, this equates to 17.5 MMBOE for the year, or an average daily production rate of 47,860 BOE.
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Proved Reserves at December 31, 2008 (1) |
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| Core Area | Oil (MMbbl) |
Natural Gas (Bcf) |
Total (MMBOE) |
% Oil | Pre-Tax PV 10% Value (1) (In millions) |
December 2007 Average Daily Production (MBOE/d) |
| Permian Basin | 88.1 | 57.8 | 97.7 | 90% | $455.2 | 11.7 |
| Rocky Mountains | 49.2 | 203.9 | 83.2 | 59% | $548.2 | 27.7 |
| Mid-Continent | 37.2 | 11.7 | 39.1 | 95% | $416.2 | 7.2 |
| Gulf Coast | 3.1 | 41.6 | 10.1 | 31% | $105.2 | 5.0 |
| Michigan | 2.4 | 39.7 | 9.0 | 27% | $78.2 | 3.5 |
| Total | 180.0 | 354.8 | 239.1 | 75% | $1,603.0 | 55.1 |
| (1) Oil and gas reserve quantities and related discounted future net cash flows have been derived from oil and gas prices as of December 31, 2008 pursuant to current SEC and FASB guidelines. (2) Oil includes natural gas liquids. (3) Pre-tax PV10% may be considered a non-GAAP financial measure as defined by the SEC and is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. Pre-tax PV10% is computed on the same basis as the standardized measure of discounted future net cash flows but without deducting future income taxes. We believe pre-tax PV10% is a useful measure for investors for evaluating the relative monetary significance of our oil and natural gas properties. We further believe investors may utilize our pre-tax PV10% as a basis for comparison of the relative size and value of our reserves to other companies because many factors that are unique to each individual company impact the amount of future income taxes to be paid. Our management uses this measure when assessing the potential return on investment related to our oil and gas properties and acquisitions. However, pre-tax PV10% is not a substitute for the standardized measure of discounted future net cash flows. Our pre-tax PV10% and the standardized measure of discounted future net cash flows do not purport to present the fair value of our oil and natural gas reserves. |
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