NOG acquires Duvernay shale position in Alberta

(WO) — Northern Oil and Gas (NOG) has agreed to acquire a 25% non-operated interest in light oil assets in Alberta’s Duvernay shale play, marking the company’s entry into the Canadian upstream sector.

The transaction includes a stake in assets operated by Parallax Energy Operating in the Duvernay East Shale basin for an initial unadjusted purchase price of approximately CA$350 million (US$259 million), subject to closing adjustments.

NOG said the acquired position includes approximately 75,000 net acres and more than 500 gross undeveloped drilling locations with average breakeven prices below $50/bbl WTI.

The company expects the assets to contribute approximately 4,000 boed of production in 2027, with about 80% consisting of light oil.

“Quality oil inventory is becoming increasingly scarce, and NOG’s scaled non-operated model positions us to access opportunities that most in our sector cannot,” the company said in prepared remarks announcing the transaction.

The acquisition also includes a long-term joint development agreement and area-of-mutual-interest arrangement with Parallax tied to future development activity across the acreage position.

NOG said it expects operating costs on the assets to remain below $7.50/boe, under the company’s current corporate average.

The transaction consideration includes approximately CA$113 million in NOG common stock issued to the seller at closing, with the remaining balance funded through cash on hand, operating cash flow and borrowings under the company’s revolving credit facility.

An additional contingent payment of approximately CA$25 million could become payable in 2028 if certain oil price thresholds are met.

NOG expects to spend between US$40 million and US$45 million in capital expenditures on the acquired assets during 2026, increasing to between US$45 million and US$50 million in 2027.

The effective date of the acquisition is April 1, 2026, with closing expected late in the second quarter. The company said it has formed a wholly owned subsidiary, NOG Energy Canada, to support its Canadian operations.

Parallax is backed by investment funds managed by Carnelian Energy Capital Management.