Northern Oil and Gas, Inc. (NYSE American: NOG) today announced that it has entered into a definitive agreement to acquire producing assets in the Williston Basin of North Dakota. Separately, Northern has entered into another negotiated exchange agreement with an institutional holder (the “Investor”) of its 8% senior unsecured notes due 2020 (the “Notes”).

Highlights

  • Acquisition includes current estimated production of 165 barrels of oil equivalent per day and over 1,900 acres in the Pronghorn area of the Williston Basin
  • Exchange agreement will result in a debt reduction of $10 million par value of Notes, in exchange for common stock
  • Combined with the other exchange transactions announced over the last two weeks, Northern has now entered into agreements to retire $53.8 million of its remaining Notes

Management comment

“This acquisition is another indicator of our continued success in pursuing accretive acquisitions and our competitive advantage in the Williston Basin,” commented Northern’s Chief Executive Officer, Mike Reger. “Our capital allocation process is driving strong cash flow growth. We continue to see numerous acquisition opportunities, while at the same time we continue improving our balance sheet and reducing our cash expenses.”

The acquired acreage is 100% held by production and focused in the Pronghorn area, operated by Whiting Petroleum and Continental Resources. Total consideration is $5 million in cash (subject to closing adjustments) and 500,000 shares of Northern common stock, with the acquisition expected to close on or about August 1, 2018.

The new exchange agreement represents a debt reduction of $10,000,000 par value of Notes. In exchange, Northern will issue 3,338,020 shares of common stock to the Investor. In exchange for certain guarantees, the Investor has agreed to a nine month lock-up period, subject to certain exceptions.

About Northern Oil and Gas

Northern Oil and Gas, Inc. is an exploration and production company with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana.

More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.

Northern Oil and Gas, Inc.

Nicholas O’Grady, 952-476-9800

Chief Financial Officer

[email protected]


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