Northern Oil & Gas Closes Private Placement

Northern Oil and Gas says the completion of a private placement of 4,545,455 to accredited investors at a subscription price of $3.30 per share for total gross proceeds of $15,000,000.

In addition to common stock, investors purchasing shares in the private placement will also receive a warrant to purchase common stock. For each share of common stock purchased in this transaction, the purchaser will receive the right to purchase one-half share of Northern common stock at a price of $5.00 per share for a period of 18 months from the date of closing and the right to purchase one-half share of Northern common stock at a price of $6.00 per share for a period of 48 months from the date of closing.

FIG Partners, LLC Energy Research & Capital Group served as the exclusive placement agent for the transaction for which it received consideration in cash and warrants.

The funds raised from this private placement will be used for continued acreage acquisitions in the Williston Basin, the Appalachia Basin, Northern's exploration and development program and general corporate purposes.

The common stock was sold in reliance upon an exemption from registration under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

In connection with the private placement, the Company has agreed to file a registration statement covering the shares with the United States Securities and Exchange Commission.

In addition, the Company announced that four of the company's founders have executed restriction agreements under which they agree not to sell shares of beneficial interest in the Company for a period of 18 months from the closing of this private placement, except under certain limited circumstances. Approximately 13,289,000 shares of the Company's common stock are subject to the lock-up agreement.


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