Whiting USA Trust I

The Bank of New York Mellon Trust Company, N.A., as Trustee

Mike Ulrich
512-236-6599
919 Congress Avenue, Austin, TX 78701

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Whiting USA Trust I was formed in October 2007, by Whiting Petroleum Corporation. Whiting Petroleum Corporation’s wholly-owned subsidiaries, Whiting Oil and Gas Corporation and Equity Oil Company, conveyed a term net profits interest to the trust that represented the right to receive 90% of the net proceeds from Whiting’s interests in certain existing oil and natural gas producing properties. The net profits interest entitled the trust to receive 90% of the net proceeds from the sale of production of 9.11 million barrels of oil equivalent (MMBOE), which is equivalent to 8.20 MMBOE attributable to the net profits interest, after which the trust will terminate.

The producing properties in the trust are located primarily in the Rocky Mountains, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. The underlying properties are located in mature fields and have established production profiles. Although it is not required to do so, Whiting has and plans to continue to make capital expenditures at its sole expense for recompletions and development it deems attractive to increase production on the underlying properties without regard to the burden of the net profits interest on the underlying properties. These capital expenditures could potentially accelerate the production and sale of 9.11 MMBOE from the underlying properties.

Net proceeds payable to the trust depend upon production quantities, sale prices of oil, natural gas and natural gas liquids, and costs to produce the oil, natural gas and natural gas liquids. If at any time costs should exceed gross proceeds, neither the trust nor the trust unitholders would be liable for the excess costs; the trust, however, would not receive any net proceeds until future net proceeds exceed the total of those excess costs, plus interest at the prevailing money market rate.

Whiting has entered into hedge contracts, which are structured as costless collar arrangements, to hedge approximately 80% of the anticipated oil and gas production from the reserves attributable to the underlying properties through December 31, 2012.