Northern O&G Closes $25MM Revolving Credit Facility

Northern Oil and Gas has completed the closing of a revolving credit facility with CIT Capital USA Inc. ("CIT") with a maximum principal amount of $25 million to provide working capital for exploration and production operations. $11 million is immediately available under the facility. The remaining $14 million of financing could become available upon subsequent borrowing base redeterminations as reserves are increased from capital deployed under the facility. The facility terminates on February 27, 2012.

Michael Reger, Chief Executive Officer, commented, "We are very pleased to have closed on this facility that will provide non-dilutive funding for our developmental Bakken drilling activities for the foreseeable future. This facility, along with our forecasted cash flow from producing wells, will enable Northern Oil to fund its anticipated development plans with a high degree of certainty at a very competitive cost of capital. We believe the closing of this transaction in the current credit market environment further validates the value, consistency and future opportunity contained in our substantial Bakken drilling inventory despite a challenging crude oil market."

Northern Oil has the option to designate the reference rate of interest for each specific borrowing under the facility as amounts are advanced. Borrowings may be based on an interest rate equal to 5.50% over the one-month, three-month or six-month London Interbank Offered Rate (LIBOR), as designated by Northern Oil, with a minimum base rate of 2.50%. Any borrowings not designated as being based upon LIBOR will have no specified term and generally will bear interest at a rate equal to 4.50% over the greater of (a) the current three-month LIBOR rate plus 1.0% or (b) the current prime rate as published by JP Morgan Chase Bank, N.A.


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