Whiting Petroleum Corporation has entered into a purchase and sale agreement with Chicago Energy Associates, LLC to purchase interests in producing gas wells and development acreage in the Flat Rock Natural Gas Field in Uintah County, Utah. The acquisition also includes gas gathering facilities. The purchase price is $365 million with an effective date of January 1, 2008.

The closing is expected to occur May 30, 2008, subject to standard conditions to closing and approval by Chicago Energy's members. Whiting will finance the acquisition with borrowings under its existing bank credit facility. As a result of its recent $220 million debt retirement with the proceeds of the Whiting USA Trust I, Whiting expects its debt to total capitalization to be approximately 41% after the acquisition is closed.

Whiting estimates that net production from the properties was 19 million cubic feet of gas equivalent (MMcfe) per day in March 2008. Whiting estimates proved reserves to be acquired at 115.2 billion cubic feet equivalent (Bcfe), of which 98% is natural gas. Of the 115.2 Bcfe, 22% is proved developed producing and 78% is proved undeveloped. After allocation of $35 million of the purchase price to the gas gathering facilities, the remaining $330 million results in an acquisition cost for the proved reserves of $2.86/Mcfe. Approximately 83% of the current net daily production from these properties will be operated by Whiting.

James J. Volker, Whiting's Chairman, President and CEO, commented, "We are pleased to be adding this exceptional Rockies gas field in the Uinta Basin of northeastern Utah to our Rockies Region where we are also developing existing gas fields in the Piceance Basin of Colorado and the Greater Green River Basin of southwestern Wyoming. The numerous pipelines completed and under construction in the region provide the take-away capacity to produce and sell our Rockies gas at attractive margins. We expect the continued development planned for this field may cause an approximate 70% increase in Whiting's net Flat Rock production in 2009 over 2008 and may approximately double the current rate in 2010."

The acquisition includes interest in seven wells producing from the Entrada sandstone formation at a depth of 11,500 feet, as well as 24 wells producing from shallower Wasatch and Dakota formations. Production from the wells completed in the Entrada formation makes up 97% of the 19 MMcfe of net daily production. In the area, the Entrada has been found with over 100 feet of net pay. Forty-nine square miles of 3-D seismic support a current plan of approximately 59 additional wells to more fully develop the Entrada formation on the 22,029 gross and 11,534 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. Gas gathering assets in the acquisition include 44 miles of lines, compression and processing facilities which deliver the gas to the Questar Mainline 40 interstate pipeline.

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