MDU Resources Reports Positive Initial Results From Three Forks/Sanish Well

MDU Resources Group, Inc. (NYSE:MDU) has announced that its indirect wholly owned subsidiary, Fidelity Exploration & Production Company, recently completed its first operated well in the Three Forks/Sanish formation in the Bakken shale area in Mountrail County in North Dakota. After the fracture stimulation treatment, the Domaskin 11-29H well’s average production over the past five days was 634 barrels of oil per day. The well is flowing up 7-inch casing on a 22/64-inch choke. Fidelity has a 58 percent working interest in this well. "Initial flow rates from the well are very positive, and we are pleased with the early results,” said Terry D. Hildestad, president and chief executive officer of MDU Resources. "This is the company’s first well to test the Three Forks/Sanish formation. If the Three Forks/Sanish formation proves to be a separate reservoir from the middle Bakken, this will provide additional opportunities to grow reserves and production within our existing leasehold position.” Fidelity’s acreage position in the Bakken play includes over 65,000 net acres in Mountrail and Burke counties of North Dakota. In addition to this well, Fidelity has spudded 14 wells targeting the middle Bakken formation in Mountrail and Burke counties of North Dakota and currently has three rigs working in the area. The company plans to participate in 50 to 60 wells this year in the Bakken, roughly half of which will be operated by the company. 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 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 and 10-Q. MDU Resources Group, Inc., 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. The company operates in three core lines of business: energy, construction materials and utility resources. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, construction materials and contracting, construction services, and electric and natural gas utilities. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.