S&P rates Whiting notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Whiting Petroleum Corp. and assigned its B- subordinated debt rating to Whiting's proposed $150 million senior subordinated notes due 2012.

The outlook is positive.

The proceeds from the transaction will be used to repay outstanding debt under the company's bank credit facility, which will, in turn, provide liquidity for future growth initiatives such as property acquisitions.

S&P said the ratings reflect Whiting's participation in the intensely competitive and highly cyclical oil and gas industry, while facing the challenges of its small reserve base, above-average cost structure, and acquisitive growth strategy.

These weaknesses are partially offset by Whiting's long-lived reserves, which in turn are expected to generate a significant inventory of development projects, coupled with the company's moderate financial policies.

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