Northern Oil & Gas

Northern Oil and Gas, Inc. (NYSE MKT: NOG) is the leading non-operator franchise in the  Bakken and Three Forks plays in the Williston Basin of North Dakota and Montana. The foundation of the Company’s success is the long-term relationships it has built in the Williston Basin with premier operators and land owners. Northern has targeted areas in the Williston Basin where activity levels are the highest and offers the highest rates of return on oil drilling projects.

Stategy

Northern believes that the best way for it to generate long-term value is the continued capital allocation process that has been fine-tuned over the last several years seeing a high volume of acreage and well participation opportunities with which to make capital allocation decisions.  That capital allocation process follows a business model:

• Acquire non-operated positions in high quality acreage about to be drilled, that provide for high internal rates of return on capital.
• Partner with leading E&P operators with a successful track record in the Williston Basin, ensuring reliable performance and diversification of operational risk.
• Maintain the financial flexibility, liquidity and discipline to deploy capital quickly where it will generate the highest rates of return.
• Increase visible growth potential over the long-term, strengthening our ability to deliver on our commitments for decades to come.

This model has successfully grown production and proved reserves since inception.  Northern continues to evaluate and expand its acreage footprint and multi-year drilling inventory through selective, bolt-on acquisitions in areas identified by the Company as being prospective for the Bakken and Three Forks plays in the Williston Basin and that will generate high rates of return throughout commodity cycles. Leading operators recognize Northern as the “go to” buyer of non-operated positions in the Bakken oil play.

Northern focuses its efforts in the Williston Basin, one of America’s most prolific oil producing regions and home to the Bakken and Three Forks oil plays. The area is ideal for leveraging the Company’s strengths, including:

• Acreage footprint of approximately 165,000 net mineral acres in the heart of the Bakken and Three Forks oil plays in North Dakota and Montana.
• Interests in over 2,600 gross Bakken/Three Forks oil wells in the Williston Basin.
• Producing an average of 16,285 barrels of oil per day in 2015.
• Proved reserves of 65.3 million barrels of oil equivalent at year-end 2015.

7.4 Billion Barrels of Recoverable Oil

On April 30, 2013, the United States Geological Survey (USGS) released an updated oil and gas resource assessment for the Bakken Formation and a new assessment for the Three Forks Formation in North Dakota, South Dakota and Montana. The assessments found that the formations contain an estimated mean of 7.4 billion barrels of undiscovered, technically recoverable oil. The updated assessment for the Bakken and Three Forks represents a twofold increase over what has previously been thought.  The USGS assessment found that the Bakken Formation has an estimated mean oil resource of 3.65 billion barrels and the Three Forks Formation has an estimated mean resource of 3.73 BBO, for a total of 7.38 billion barrels, with a range of 4.42 (95 percent chance) to 11.43 BBO (5 percent chance). This assessment of both formations represents a significant increase over the estimated mean resource of 3.65 billion barrels of undiscovered oil in the Bakken Formation that was estimated in the 2008 assessment.