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Whiting Petroleum Corporation's Second Quarter 2008 Earnings Reach a Record $80.4 Million or $1.90 Per Share $216.3 Million in Discretionary Cash Flow

Posted on: Wednesday, 30 July 2008, 18:00 CDT

DENVER, July 30 /PRNewswire-FirstCall/ -- Whiting Petroleum Corporation today reported record second quarter 2008 net income of $80.4 million, or $1.90 per basic and diluted share, on total revenues of $345.8 million. This compares to second quarter 2007 net income of $26.5 million, or $0.72 per basic and diluted share, on total revenues of $192.9 million. During the second quarter of 2008, as a result of rising commodity prices, Whiting recognized a non-cash, after-tax unrealized loss on commodity derivative contracts of $12.9 million, or $0.30 per share.

Discretionary cash flow in the second quarter of 2008 totaled a record $216.3 million, more than double the $100.2 million reported for the same period in 2007. A reconciliation of discretionary cash flow to net cash provided by operating activities is included at the end of this news release. The increases in net income and discretionary cash flow in the second quarter of 2008 versus the comparable 2007 period were primarily the result of an 8% increase in the Company's total equivalent production, a 67% increase in the Company's net realized oil price and a 44% increase in its net realized gas price.

Production in the second quarter of 2008 totaled a record of 4.02 million barrels of oil equivalent (MMBOE), of which 2.80 million barrels were crude oil (70%) and 1.22 MMBOE was natural gas (30%). This second quarter 2008 production total equates to a daily average production rate of 44,200 barrels of oil equivalent (BOE), compared to the 40,920 BOE per day average rate in 2007's second quarter. The second quarter 2008 daily average production rate of 44,200 BOE also represents a 7.5% increase from the first quarter 2008 daily average rate of 41,120 BOE. June 2008 average production of 47,100 BOE per day represents a 12.7% increase from the March 2008 average daily rate of 41,800 BOE.

The net profits interest in properties conveyed to third-party holders of Whiting USA Trust I, which closed April 30, 2008, represented production of approximately 3,100 BOE per day in April 2008. These volumes were included in Whiting's production totals only for the month of April 2008. Whiting's acquisition of the Flat Rock field in the Uinta Basin closed May 30, 2008. Net production of 3,010 BOE per day from the Uinta Basin properties was included in Whiting's production totals only for the month of June 2008.

Production increases were due to a combination of successful drilling in the prolific Piceance and Bakken projects and continued increases in the Company's CO2 flood projects. The primary contributor to Whiting's production increases in the second quarter of 2008 came from new wells in the Middle Bakken formation in the Sanish and Parshall fields in Mountrail County, North Dakota. The following table summarizes the Company's net production from the Sanish and Parshall fields in the second quarter and in June 2008:

Average Number of Operated and Q2 08 Net June Net Producing Non-Op. Production Production Field Wells WI NRI (BOE/D) (BOE/D) Sanish 17 63% 51% 2,400 3,400 Parshall 48 25% 20% 4,000 5,000 Totals 65 6,400 8,400

Whiting has increased its exploration and development budget $85 million to $850 million for 2008. The increase is due primarily to additional exploration and development activities across the Company's regions.

Six Months Financial and Operating Results

For the six months ended June 30, 2008, Whiting reported net income of $142.8 million, or $3.38 per basic and $3.37 per diluted share, on total revenues of $609.8 million. This compares to first half 2007 net income of $37.1 million, or $1.01 per basic and diluted share, on total revenues of $352.8 million. Discretionary cash flow for the first six months of 2008 totaled $377.8 million, compared to $174.2 million in the comparable 2007 period.

Production in the first half of 2008 totaled 7.76 MMBOE, or 42,660 BOE per day, compared to first half 2007 production of 7.26 MMBOE, or 40,090 BOE per day.

James J. Volker, Whiting's Chairman, President and CEO, commented, "All of our production growth in the first half of 2008 was organic. Our net production from the Middle Bakken formation more than doubled from March to June to a rate of more than 8,400 barrels of oil equivalent per day. Our net production from the Boies Ranch prospect in the Piceance Basin ramped up to more than 6 million cubic feet per day in June from 744 thousand cubic feet per day in March. In addition, combined production from our CO2 projects increased 3% to 11,700 BOE per day in June from 11,400 BOE in March."

Mr. Volker continued, "We expect the momentum established in the second quarter to continue into the second half of this year and into 2009. We have raised our production guidance for 2008 to a range of 16.5 MMBOE to 16.7 MMBOE. The mid-point of this range would represent a 12.9% increase over our 2007 production total of 14.7 MMBOE."

As of July 30, 2008, 14 operated drilling rigs and 34 operated workover rigs were active on our properties. We were also participating in the drilling of 10 non-operated wells, most of which are located in the Parshall field. The breakdown of our operated rigs is as follows:

Region Drilling Workover Rocky Mountain Bakken / Williston 5 4 Piceance 2 1 Green River 1 2 Permian 2 6 Mid-Continent 0 2 Gulf Coast 1 1 Postle 2 5 North Ward Estes 1 13 Totals 14 34 Other Noteworthy Events and Results

-- Whiting completed six significant single-lateral Bakken oil and gas producers in the Sanish field during the past 10 weeks. The following table summarizes the results:

IP (BOE/D) Completion 24-hr. 1st 30 Well Name WI NRI Date Test Days (BOE/D) Stenseth Trust 11-5H 73% 59% 07/06/08 3,044 N/A Lacey 11-1H 86% 70% 07/01/08 2,330 N/A Behr 11-34H 54% 44% 06/20/08 3,245 1,335 Abbott 11-18H 99% 80% 06/16/08 1,959 1,088 Locken 14-28H 78% 63% 05/31/08 1,719 935 Braaflat 11-11H 97% 78% 05/23/08 2,997 1,505

-- On May 30, 2008, Whiting completed its acquisition from Chicago Energy Associates, LLC of interests in producing gas wells and development acreage in the Flat Rock field in Uintah County, Utah for $364.4 million in cash. The acquisition also included gas gathering facilities. The effective date of the acquisition was January 1, 2008. Whiting funded the purchase price with borrowings under its existing bank credit facility.

Net production from the Flat Rock field averaged 18.1 million cubic feet (MMcf) of gas per day (3,010 BOE per day) in June 2008. Whiting recently began drilling its first well in Flat Rock. The Ute Tribal 1-30-14-20, in which Whiting holds a 100% working interest, is scheduled to test the Entrada sandstone at a depth of approximately 11,500 feet. Approximately 17.5 MMcf of gas per day of the field's daily gas output of 18.1 MMcf is from seven Entrada gas wells. Whiting expects to drill and complete four additional 100%-owned Entrada wells by year-end 2008.

Forty-nine square miles of 3-D seismic support a current plan of up to 59 additional wells to more fully develop the Entrada and other formations on the 22,029 gross and 11,533 net acres included in the acquisition. Of these 59 additional wells, Whiting expects to operate 15 while 44 are expected to be operated by another experienced area operator.

-- On April 30, 2008, Whiting closed the initial public offering of Whiting USA Trust I at $20.00 per trust unit. Whiting received net proceeds from this offering of $215.1 million. The trust units began trading on the NYSE on April 25, 2008 under the symbol WHX. After completion of the offering, Whiting owns 2,186,389 (15.77%) out of the 13,863,889 total outstanding trust units. Based on the net proceeds from the initial public offering of $215.1 million, Whiting received $31.17 per BOE from the offering.

-- As mentioned previously, Whiting's net production from the Middle Bakken formation in the Sanish and Parshall fields of Mountrail County, North Dakota averaged 8,400 BOE per day in June 2008, more than double the 4,153 BOE average daily rate in March 2008.

Whiting's net production from the Sanish field in June 2008 averaged 3,400 BOE per day, compared to a net daily rate of 1,175 BOE in March 2008. Whiting is currently drilling or completing seven operated wells in the Sanish field with an average working interest of 82%. The Company currently has five operated rigs working in the field and expects to have nine operated rigs drilling in the area by year-end 2008. Whiting has completed nine operated wells in the Sanish field in 2008 and expects to complete an additional 20 to 25 wells during the balance of the year. Whiting expects all of these to be single-lateral wells drilled on 1,280-acre spacing units. Ultimately, Whiting estimates that it has 128 operated locations in the Sanish field that are expected to be drilled during the next 36 months. Potential in-fill drilling (drilling an 8,000-foot to 10,000-foot lateral across two 1,280-acre spacing units) would add to this total. In addition, Whiting plans to test the Three Forks/Sanish formation in Mountrail County in the third quarter of 2008. We hold a total of 118,571 gross acres (83,310 net acres) in the Sanish field.

In late June, the Company completed construction of the first phase of its Robinson Lake gas processing plant in the Sanish field and was selling approximately 170 net barrels per day of natural gas liquids (NGLs) in July 2008. The installation of a 17-mile natural gas pipeline in the Sanish field is nearing completion. Gas sales from Sanish of approximately 1 MMcf per day are expected to begin in the fourth quarter of 2008. Following the anticipated expansion of the Robinson Lake gas plant in the first quarter of 2009, Whiting-operated net gas sales are expected to approximate 3 MMcf to 4 MMcf per day.

In the Parshall field, Whiting owns interests in 72,790 gross acres (14,982 net acres). As of June 30, 2008, Whiting had participated in a total of 48 wells that produce from the Bakken formation, 24 of which were completed in 2008. Whiting expects to participate in a total of 60 to 70 wells (up from the previous estimate of 50 to 60 wells) in the Parshall field in 2008 with an average working interest of 25%. Eight drilling rigs were working in the Parshall field as of July 30, 2008. Whiting's net production from the Parshall field in June 2008 averaged 5,000 BOE per day, compared to a net daily rate of 2,978 BOE in March 2008.

-- At our Boies Ranch prospect in Rio Blanco County, Colorado, 13 wells were producing at a combined average net rate to Whiting of 6.1 MMcf of gas per day in June 2008. Whiting holds an average working interest of 71% and an average net revenue interest of 62% in the 13 gas wells. In addition, two wells are being drilled and eight wells are being completed or waiting on completion. Of these eight wells, Whiting expects five to be completed and producing into a sales line by the end of August 2008 and the remaining three by the end of September.

Whiting recently completed a 3-mile, 10-inch diameter pipeline that has a total daily capacity of approximately 80 MMcf of gas at its Boies Ranch prospect (Sulphur Creek field). Start-up of the pipeline facilities occurred on May 13, 2008. The new pipeline connects to a supply trunk line feeding a 750 MMcf per day treating and processing facility connected to the Rockies Express pipeline (REX) that gives Whiting access to multiple intrastate and interstate markets. The new pipeline connection will allow Whiting to market all of its gas at Boies Ranch without restriction. The 42-inch diameter REX pipeline currently has a capacity of transporting 1.5 Bcf of gas per day.

Whiting holds 2,760 gross acres (1,570 net acres) on the Boies Ranch and Jimmy Gulch prospects. In addition, we own 14,133 gross federal lease acres (2,501 net acres) in this immediate area. Based on 20-acre spacing units, Whiting plans to drill a total of 110 wells on Boies Ranch and Jimmy Gulch, 24 of which are planned for 2008. Downspacing to 10 acres in certain areas of the field would generate additional locations. Drilling operations are expected to commence at Jimmy Gulch in August 2008.

-- Whiting's expansion of its CO2 flood at the Postle field, located in Texas County, Oklahoma, continues to generate positive results. Production from the field has increased from a net 4,200 BOE per day at the time of its acquisition in August 2005 to a net 6,300 BOE per day in June 2008, an increase of 50%. This project is part of the Company's plan to expand the existing water and CO2 flood from the eastern half of the Postle field to the western half of the field. The field includes six producing units covering a total of approximately 25,600 gross acres (24,223 net acres) with working interests of 94% to 100%.

-- The North Ward Estes field in Ward and Winkler Counties, Texas is responding to the Company's CO2 injection, which was initiated in May 2007. Net production from North Ward Estes in June 2008 averaged 5,400 BOE per day, up from 3,600 BOE per day during the first quarter of 2005, just prior to our July 2005 agreement to acquire the North Ward Estes field. The current rate continues to increase over the net daily rate of 5,200 BOE per day in March of 2008 and 5,050 BOE per day in December 2007.

The following table summarizes the Company's net production and commodity price realizations for the quarters ended June 30, 2008 and 2007:

Three Months Ended Production 6/30/08 6/30/07 Change Oil and condensate (MMbbls) 2.80 2.38 18% Natural gas (Bcf) 7.34 8.06 (9%) Equivalent (MMBOE) 4.02 3.72 8% Average Sales Price Oil and condensate (per Bbl): Price received $113.28 $57.38 97% Effect of crude oil hedging (17.19) - Realized price $96.09 $57.38 67% Natural gas (per Mcf): Price received $10.02 $6.95 44% Effect of natural gas hedging - - Realized price $10.02 $6.95 44%

The decline in gas sales was primarily the result of the sale of South Texas properties, which was effective July 1, 2007.

Whiting recorded a loss of $48.1 million on its crude oil hedges during the second quarter of 2008, and no gain or loss on its natural gas hedges in the second quarter of 2008. A summary of Whiting's outstanding hedges is included later in this news release.

Second Quarter and First Half Costs and Margins

A summary of production, cash revenues and cash costs on a per BOE basis is as follows:

Per BOE, Except Production Three Months Six Months Ended June 30, Ended June 30, 2008 2007 2008 2007 Production (MMBOE) 4.02 3.72 7.76 7.26 Sales price, net of hedging $85.14 $51.74 $78.08 $48.56 Lease operating expense 14.29 13.96 14.58 13.92 Production tax 6.48 3.24 5.63 2.99 General & administrative 5.72 2.38 4.46 2.36 Exploration 1.45 1.16 1.83 1.54 Cash interest expense 3.52 5.13 3.63 5.09 Cash income tax expense (0.21) 0.41 0.11 0.30 $53.89 $25.46 $47.84 $22.36

With the exception of the Company's basis differentials, all of its financial and operating statistics for the second quarter were in line with or better than its previously announced guidance.

During the second quarter, the company-wide basis differential for crude oil compared to NYMEX was $10.72 per barrel, which compared to $7.64 per barrel in the second quarter of 2007 and $8.38 per barrel in the first quarter of 2008. Whiting expects its oil price differential to remain at $10.00 to $11.00 in the second half of 2008.

During the second quarter, the company-wide basis differential for natural gas compared to NYMEX was $0.92 per Mcf, which compared to $0.60 per Mcf in the second quarter of 2007 and $0.14 per Mcf in the first quarter of 2008. Whiting expects its gas price differential to be in the range of $0.50 to $1.00 in second half of 2008.

Second Quarter 2008 Drilling Summary

The table below summarizes Whiting's drilling activity and exploration and development costs incurred for the three months and six months ended June 30, 2008:

Gross/Net Wells Completed Expl. & Dev. Total New % Success Cost Producing Non-Producing Drilling Rate (in millions) Q208 84 / 30.1 4 / 1.6 88 / 31.7 96% / 95% $222.4 6M08 131 / 55.8 9 / 2.1 140 / 57.9 94% / 96% $410.3 Outlook for Third Quarter and Full-year 2008

The following table provides a summary of certain estimates for the third quarter and full-year 2008 based on current forecasts. Whiting's full-year 2008 capital budget is $850 million (excluding acquisition costs).

Whiting has adjusted third quarter production guidance for planned maintenance on the pipeline that transports crude oil from the Sanish and Parshall fields. The maintenance is scheduled to take place from August 19 through August 23, 2008 and could affect as much as 40,000 barrels, or less than 1%, of total net production during the third quarter. Whiting is looking at different markets for its crude oil production from this area during that period.

In addition, Whiting is making alternative marketing arrangements for its Piceance Basin gas production to mitigate the impact of scheduled testing on a section of the REX pipeline for most of September. As previously mentioned, net production from the Company's Boies Ranch prospect averaged 6.1 MMcf of gas per day in June 2008.

Guidance for the third quarter and full-year 2008 is as follows: Guidance Third Quarter Full-Year 2008 2008 Production (MMBOE) 4.30 - 4.40 16.50 - 16.70 Lease operating expense per BOE $13.70 - $14.00 $14.00 - $14.30 General and admin. expense per BOE $3.90 - $4.10 $4.20 - $4.40 Interest expense per BOE $4.05 - $4.25 $4.00 - $4.20 Depr., depletion and amort. per BOE $14.10 - $14.50 $14.00 - $14.40 Prod. taxes (% of production revenue) 6.6% - 6.9% 6.6% - 6.9% Oil Price Differentials to NYMEX per Bbl $10.00 - $11.00 $9.50 - $10.00 Gas Price Differentials to NYMEX per Mcf $0.50 - $1.00 $0.50 - $0.70 Oil Hedges and Fixed-Price Gas Contracts

Whiting Petroleum Corporation's outstanding hedges and fixed-price gas contracts as of July 1, 2008 are summarized below:

As a Contracted NYMEX Price Collar Percentage of 2008 Volume Range June 2008 Hedges (Bbls per Month) (per Bbl) Oil Production Q3 110,000 $48.00 - $70.85 12% Q3 120,000 $60.00 - $75.60 13% Q3 100,000 $65.00 - $81.00 10% Q4 110,000 $48.00 - $70.20 12% Q4 120,000 $60.00 - $75.85 13% Q4 100,000 $65.00 - $81.20 10% Natural Gas As a Volumes in 2008 Contract Percentage of Fixed Price MMBtu per Price (1) June 2008 Contracts Month per MMBtu Gas Production July 2008 - May 2011 25,000 $4.94 1% July 2008 - Sep. 2012 67,000 $4.38 2% (1) Annual 4% price escalation on fixed price contracts.

In conjunction with the Whiting USA Trust I, Whiting entered into certain oil and natural gas hedges on the underlying properties. Whiting's retained 10% interest in the underlying properties combined with its ownership of 2,186,389 trust units results in third-party public holders of trust units receiving 75.8%, and Whiting retaining 24.2%, of the future economic results of the hedge contracts listed below.

Contracted Volume NYMEX Price Collar Range Oil Natural Gas Bbls per Mcf per Oil Gas Hedges Month Month (per Bbl) (per MMBtu) 2008 52,177 235,314 $82.00 - $132.81 $7.00 - $17.38 2009 48,166 198,974 $76.00 - $137.43 $6.50 - $17.11 2010 43,488 170,589 $76.00 - $134.98 $6.50 - $15.06 2011 39,614 150,313 $74.00 - $140.15 $6.50 - $14.62 2012 36,189 132,232 $74.00 - $141.72 $6.50 - $14.27 Selected Operating and Financial Statistics Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Selected operating statistics Production Oil and condensate, Mbbl 2,798 2,381 5,392 4,626 Natural gas, MMcf 7,344 8,056 14,234 15,785 Oil equivalents, MBOE 4,022 3,724 7,764 7,257 Average Prices Oil, Bbl (excludes hedging) $113.28 $57.38 $101.88 $53.48 Natural gas, Mcf (excludes hedging) $10.02 $6.95 $8.99 $6.65 Per BOE Data Sales price (including hedging) $85.14 $51.74 $78.08 $48.56 Lease operating $14.29 $13.96 $14.58 $13.92 Production taxes $6.48 $3.24 $5.63 $2.99 Depreciation, depletion and amortization $13.63 $13.25 $13.56 $12.94 General and administrative $5.72 $2.38 $4.46 $2.36 Selected Financial Data (In thousands, except per share data) Total revenues and other income $345,775 $192,904 $609,825 $352,826 Total costs and expenses $217,911 $151,305 $383,179 $294,708 Net income $80,449 $26,471 $142,763 $37,137 Net income per common share, basic $1.90 $0.72 $3.38 $1.01 Net income per common share, diluted $1.90 $0.72 $3.37 $1.01 Average shares outstanding, basic 42,320 36,808 42,296 36,789 Average shares outstanding, diluted 42,446 36,905 42,416 36,936 Net cash provided by operating activities $206,638 $87,592 $329,091 $149,953 Net cash used in investing activities $(398,163) $(117,890) $(568,664) $(242,729) Net cash provided by financing activities $210,000 $30,000 $250,000 $90,294 Conference Call

The Company's management will host a conference call with investors, analysts and other interested parties on Thursday, July 31, 2008 at 11:00 a.m. EDT (10:00 a.m. CDT, 9:00 a.m. MDT) to discuss Whiting's second quarter 2008 financial and operating results. Please call (888) 873-4896 (U.S./Canada) or (617) 213-8850 (International) and enter the pass code 40529254 to be connected to the call. Access to a live Internet broadcast will be available at http://www.whiting.com/ by clicking on the link titled "Webcasts." Slides for the conference call will be available on this website beginning at 11:00 a.m. (EDT) on July 31, 2008.

A telephonic replay will be available beginning approximately two hours after the call on Thursday, July 31, 2008 and continuing through Thursday, August 7, 2008. You may access this replay at (888) 286-8010 (U.S./Canada) or (617) 801-6888 (International) and entering the pass code 34686270. You may also access a web archive at http://www.whiting.com/ beginning approximately one hour after the conference call.

About Whiting Petroleum Corporation

Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that acquires, exploits, develops and explores for crude oil, natural gas and natural gas liquids primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast and Michigan regions of the United States. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com/.

Forward-Looking Statements

This news release contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we "expect,""intend,""plan,""estimate,""anticipate,""believe" or "should" or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.

These risks and uncertainties include, but are not limited to: declines in oil or gas prices; our level of success in exploitation, exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures, including our ability to obtain drilling rigs and CO2; our ability to obtain external capital to finance acquisitions; our ability to identify and complete acquisitions and to successfully integrate acquired businesses, including the properties acquired from Chicago Energy; unforeseen underperformance of or liabilities associated with acquired properties, including the properties acquired from Chicago Energy; our ability to successfully complete potential asset dispositions; inaccuracies of our reserve estimates or our assumptions underlying them; failure of our properties to yield oil or gas in commercially viable quantities; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; risks related to our level of indebtedness and periodic redeterminations of our borrowing base under our credit agreement; our ability to replace our oil and gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry in the regions in which we operate; risks arising out of our hedging transactions; and other risks described under the caption "Risk Factors" in our Form 10-K for the year ended December 31, 2007. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.

SELECTED FINANCIAL DATA

For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation's Second Quarter Form 10-Q for the three and six months ended June 30, 2008, to be filed with the Securities and Exchange Commission.

WHITING PETROLEUM CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 30, December 31, 2008 2007 ASSETS CURRENT ASSETS: Cash and cash equivalents $25,205 $14,778 Accounts receivable trade, net 199,782 110,437 Deferred income taxes 39,890 27,720 Prepaid expenses and other 33,152 9,232 Total current assets 298,029 162,167 PROPERTY AND EQUIPMENT: Oil and gas properties, successful efforts method: Proved properties 3,874,820 3,313,777 Unproved properties 131,430 55,084 Other property and equipment 51,456 37,778 Total property and equipment 4,057,706 3,406,639 Less accumulated depreciation, depletion and amortization (715,426) (646,943) Total property and equipment, net 3,342,280 2,759,696 DEBT ISSUANCE COSTS 12,881 15,016 OTHER LONG-TERM ASSETS 52,006 15,132 TOTAL $3,705,196 $2,952,011 WHITING PETROLEUM CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2008 2007 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $50,366 $19,280 Accrued capital expenditures 79,096 59,441 Accrued liabilities 41,188 29,098 Accrued interest 10,633 11,240 Oil and gas sales payable 39,425 26,205 Accrued employee compensation and benefits 25,756 21,081 Production taxes payable 25,193 12,936 Current portion of deferred gain on sale 16,070 - Current portion of tax sharing liability 2,587 2,587 Current portion of derivative liability 139,268 72,796 Total current liabilities 429,582 254,664 NON-CURRENT LIABILITIES: Long-term debt 1,118,411 868,248 Asset retirement obligations 41,067 35,883 Production Participation Plan liability 51,889 34,042 Tax sharing liability 23,693 23,070 Deferred income taxes 317,889 242,964 Long-term derivative liability 37,871 - Deferred gain on sale 82,418 - Other long-term liabilities 2,290 2,314 Total non-current liabilities 1,675,528 1,206,521 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, $0.001 par value; 75,000,000 shares authorized, 42,586,046 and 42,480,497 shares issued and outstanding as of June 30, 2008 and December 31, 2007, respectively 43 42 Additional paid-in capital 970,387 968,876 Accumulated other comprehensive loss (81,131) (46,116) Retained earnings 710,787 568,024 Total stockholders' equity 1,600,086 1,490,826 TOTAL $3,705,196 $2,952,011 WHITING PETROLEUM CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 REVENUES AND OTHER INCOME: Oil and gas sales $390,536 $192,646 $677,267 $352,359 Loss on oil hedging activities (48,111) - (71,023) - Amortization of deferred gain on sale 2,957 - 2,957 - Interest income and other 393 258 624 467 Total revenues and other income 345,775 192,904 609,825 352,826 COSTS AND EXPENSES: Lease operating 57,470 51,983 113,176 101,037 Production taxes 26,057 12,079 43,743 21,690 Depreciation, depletion and amortization 54,811 49,335 105,322 93,906 Exploration and impairment 8,643 6,643 19,627 15,820 General and administrative 23,007 8,876 34,622 17,161 Change in Production Participation Plan liability 11,690 2,058 17,847 4,150 Interest expense 15,671 20,754 31,217 40,253 Mark-to-market derivative (gain) loss 20,562 (423) 17,625 691 Total costs and expenses 217,911 151,305 383,179 294,708 INCOME BEFORE INCOME TAXES 127,864 41,599 226,646 58,118 INCOME TAX EXPENSE: Current (837) 1,515 872 2,141 Deferred 48,252 13,613 83,011 18,840 Total income tax expense 47,415 15,128 83,883 20,981 NET INCOME $80,449 $26,471 $142,763 $37,137 NET INCOME PER COMMON SHARE, BASIC $1.90 $0.72 $3.38 $1.01 NET INCOME PER COMMON SHARE, DILUTED $1.90 $0.72 $3.37 $1.01 WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC 42,320 36,808 42,296 36,789 WEIGHTED AVERAGE SHARES OUTSTANDING, DILUTED 42,446 36,905 42,416 36,936 WHITING PETROLEUM CORPORATION

Reconciliation of Net Cash Provided by Operating Activities to Discretionary

Cash Flow (In thousands) Three Months Ended June 30, 2008 2007 Net cash provided by operating activities $206,638 $87,592 Exploration 5,815 4,318 Changes in working capital 3,887 8,268 Discretionary cash flow (1) $216,340 $100,178 Six Months Ended June 30, 2008 2007 Net cash provided by operating activities $329,091 $149,953 Exploration 14,227 11,178 Changes in working capital 34,454 13,110 Discretionary cash flow (1) $377,772 $174,241

(1) Discretionary cash flow is computed as net income plus exploration and impairment costs, depreciation, depletion and amortization, deferred income taxes, non-cash interest costs, non-cash compensation plan charges, unrealized derivative losses and other non-current items less the gain on sale of properties and marketable securities. The non-GAAP measure of discretionary cash flow is presented because management believes it provides useful information to investors for analysis of the Company's ability to internally fund acquisitions, exploration and development. Discretionary cash flow should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under GAAP and may not be comparable to other similarly titled measures of other companies.

Whiting Petroleum Corporation

CONTACT: John B. Kelso, Director of Investor Relations of WhitingPetroleum Corporation, +1-303-837-1661, john.kelso@whiting.com

Web site: http://www.whiting.com/

Source: PRNewswire-FirstCall

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