MDU Resources Subsidiary Announces Acreage Purchases in Bakken and Niobrara Formations

BISMARCK, N.D.--(BUSINESS WIRE)--Fidelity Exploration & Production Company, the wholly owned natural gas and oil production subsidiary of MDU Resources Group (NYSE: MDU), announced the acquisition of additional leasehold interests in the Bakken area of western North Dakota, and in the emerging oil shale play in the Niobrara formation in southeastern Wyoming and north-central Colorado.

“These lease purchases broaden our position in the Rocky Mountain region and provide long term growth potential in two exciting oil plays”

The Bakken lease purchase includes approximately 40,000 net acres with the Three Forks play as the primary target. The acquired leases have three to five year primary terms and increase the company’s acreage position in the Bakken to approximately 56,000 net acres. In the Niobrara oil shale play, the company has signed an agreement to acquire approximately 27,000 net acres with five-year primary lease terms.

“These lease purchases broaden our position in the Rocky Mountain region and provide long term growth potential in two exciting oil plays,” said Terry D. Hildestad, president and chief executive officer of MDU Resources. Hildestad noted that Fidelity continues to look for other development opportunities throughout the Rocky Mountain Region to augment the company’s reserves and production.

The information in this release includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained in this release, including statements by the president and chief executive officer of MDU Resources, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the ability to effectively integrate the acquired leaseholds; fluctuations in natural gas and crude oil prices; fluctuations in commodity price basis differentials; drilling successes in natural gas and oil operations; the timely receipt of necessary permits and approvals; the ability to contract for or to secure necessary drilling rig contracts and to retain employees to drill for and develop reserves; other risks incidental to the operation of natural gas and oil wells; and the effects on operations of extensive environmental laws and regulations. For a discussion of other important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K.

MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: utility resources, energy and construction materials. MDU Resources includes electric and natural gas utilities, construction services, natural gas and oil production, natural gas pipelines and energy services, and construction materials and contracting. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at [e-mail].