Northern Oil and Gas, Inc. Announces Agreement to Acquire Additional Williston Basin Acreage in Mountrail County, North Dakota
Northern Oil and Gas, Inc. (OTCBB: NOGS) announced today (August 17) the company has entered into a definitive agreement to acquire approximately 5,000 additional net acres in Mountrail County, ND. Combined with Northern's current acreage position, the acquisition brings the company's leasehold assets in Mountrail County to approximately 8,000 net acres.
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. A map of the company's leasehold interests in Mountrail County can be found at www.northernoil.com.
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.
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