Hess Corporation, North Dakota Officials Gather to Celebrate Expansion of Tioga Gas Plant

  Hess Corporation, North Dakota Officials Gather to Celebrate Expansion of
  Tioga Gas Plant

Business Wire

TIOGA, N.D. -- May 19, 2014

Hess Corporation (NYSE:HES) was joined today by Governor Jack Dalrymple,
Senator John Hoeven and a host of other government officials to commemorate
the recently completed expansion of the Tioga Gas Plant, which more than
doubles the operational capacity of the facility.

The project is part of a more than $1.5 billion infrastructure investment made
by Hess between 2012 and 2014 in North Dakota that has significantly increased
production of propane, methane, butane and natural gasoline, and of ethane, a
vital industrial product never before produced in the state. The expansion
also brings a substantial improvement in efficiency and significantly reduces
the amount of natural gas flared at Hess’s operations, from about 25 percent
before the plant was shut down for the expansion project to 15 to 20 percent
today.

“The Tioga Gas Plant was built in 1954, just three years after we drilled the
very first oil well in the state of North Dakota,” said John Hess, Chief
Executive Officer of Hess Corporation. “Today, as one of the largest oil and
gas producers in the Bakken, we are committed to responsible long-term growth
in North Dakota and proud to contribute to the state’s infrastructure.”

The plant is fully operational and is currently processing about 120 million
standard cubic feet of gas per day (MMSCFD), with the expectation that through
the combination of Hess and third-party gas it will soon process at least 250
MMSCFD with the potential to increase beyond 300 MMSCFD. Prior to expansion,
the plant processed about 100 MMSCFD.

“North Dakota leads the oil and gas industry because it is an attractive place
to invest, with strong public-private partnerships, responsible regulation and
a firm commitment to work hand-in-hand with the business community,” Hess
said. “Since 2010, we have invested more than $10 billion in North Dakota, we
currently have a 17 rig drilling program with 2014 net production expected to
average 80,000 to 90,000 barrels of oil equivalent per day, and are proud to
contribute to the state’s economic success. I would like to personally thank
Governor Dalrymple, Senators Hoeven and Heitkamp, Rep. Cramer, and the state
regulatory agencies that made these investments possible.”

“I’m very excited about the opening of Hess Corporation’s expanded gas plant
in Tioga,” Governor Jack Dalrymple said. “It means leadership for other
companies that are taking advantage of the Bakken oil boom. It’s an example of
what we need to see, which is more capturing of natural gas and more added
value to the product. We are very grateful to Hess for showing the way.”

“We appreciate the tremendous investment Hess is making in North Dakota, which
amounts to $1.5 billion not only for this expansion, but also for four new gas
gathering projects the company expects to complete by the end of the year,”
U.S. Senator John Hoeven said. “This new expansion more than doubles the
plant’s capacity to produce natural gas, more than triples the amount of
propane available to North Dakota and the region, and at the same time
significantly reduces flaring in the oil patch. That’s a huge win for our
state and our country.”

“Hess has a long history in North Dakota, and it’s great news the company is
continuing to invest in our state and build on its current facilities,” said
U.S. Senator Heidi Heitkamp. “With natural gas, North Dakota has an excellent
opportunity to greatly expand its already incredible energy production and
move toward fully using our vast natural resources. To make this a reality, we
need to make significant infrastructure investments, which is why the Tioga
Gas Plant expansion is so important. For years, we have wasted valuable
natural gas through flaring, but with critical investments in processing
capacity, like we are celebrating today, we can move closer toward energy
independence.”

“The legacy of Hess in North Dakota is inseparable from the story of our
booming economy. This expansion grows our portfolio of hydrocarbon and natural
gas exports while reducing flaring, continuing their rich tradition of
responsibly developing our state’s energy capabilities,” said Congressman
Kevin Cramer.

Hess Corporation has a world-class acreage position, with 640,000 net acres in
the Bakken. The company’s full year 2014 production forecast for the Bakken is
80,000 to 90,000 barrels of oil equivalent per day. The gas plant expansion,
as well as other recent infrastructure improvements made in North Dakota, is
part of the company’s growth strategy.

“As a leading operator in one of the best shale plays in the world, the Bakken
will be the single biggest contributor to our production growth over the next
five years,” said Greg Hill, President and Chief Operating Officer of
Exploration and Production for Hess. “We expect that by 2018, we’ll be
producing 150,000 barrels of oil equivalent per day from the Bakken.”

Hill was proud to credit employees for the successful expansion project. “Our
successes here are made possible by the incredibly talented employees and
contractors we have in place, who have worked tirelessly to bring this plant
online safely,” Hill said.

At the peak of plant expansion, there were about 1,400 people working at the
site, with more than 5 million total man-hours accumulated over about a 2 1/2
year period. During the final 9 months to complete the project and commission
the plant, these crews worked 2.3 million man hours without a single
recordable injury.

Hess Corporation is a leading global independent energy company engaged in the
exploration and production of crude oil and natural gas. More information on
Hess Corporation is available at http://www.hess.com.

Contact:

Investor:
Jay Wilson, 212-536-8940
Media:
John Roper, 713-496-4546
 
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