The leasehold assets acquired in this transaction consist of acreage immediately to the south of the Parshall Field, a successful major field development by EOG Resources targeting the Middle Bakken. This acquisition increases Northern's gross leasehold in Mountrail County by 24,000 acres.
Consistent with recently filed drilling permits by EOG Resources, Northern expects to participate with EOG in upcoming wells.
"We are excited to announce the expansion of our Mountrail County acreage position," said Michael Reger, Chief Executive Officer of Northern Oil & Gas. "Our position in this highly productive resource play is well situated among both productive and highly prospective acreage held by leading exploration companies. On 640-acre spacing, we are exposed to over 100 gross drilling locations. If anticipated down-spacing occurs, our exposure grows significantly."
The transaction is subject to due diligence and standard closing conditions and is expected to close on or before September 15, 2007.
Northern will begin a drilling program in Mountrail County with its joint venture partner this year. In addition to Mountrail County, Northern will begin a drilling program on its 22,000 net acres in Sheridan County, Montana this year. The company is also in discussions with partners to develop its leasehold position in Yates County, NY.
Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota. The company currently controls approximately 30,000 net mineral acres in the Williston Basin and 10,000 net mineral acres in the Appalachia Basin.
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