Dakota Oil and Gas is a non-operating participant in the Bakken and Three Forks play. As a non-operator, Dakota Oil and Gas participates in Bakken and Three Forks wells on a proportionate basis
according to its leasehold interest. Our team works directly with operating partners in each drilling unit. For example, if Dakota Oil and Gas controls leases on 64 acres in a 1280-acre drilling
unit, Dakota Oil and Gas would hold a 5 percent working interest in any oil and gas well drilled in that unit and share in both the costs and income produced by those wells. Companies that hold a
majority interest in a drilling unit are responsible for the actual drilling and operation of the wells – they are referred to as operators.