Northern Oil and Gas (NOG) said Tuesday it is acquiring a 25% stake in Canadian oil-producing assets for about 350 million Canadian dollars ($254 million).
The company said it will fund the deal with about CA$113 million in stock issued to the seller at closing, with the rest coming from cash, free cash flow and borrowings.
It also agreed to up to CA$25 million in contingent payments tied to oil prices, payable in Q1 2028 if targets are met, the company said.
Northern Oil and Gas said the assets include more than 500 drilling locations in Alberta's Duvernay shale basin and are expected to produce about 4,000 barrels of oil equivalent per day in 2027, with operating costs below $7.50 per barrel.
Parallax Energy will continue operating the fields under a long-term development agreement, it added.
Northern Oil and Gas said it plans to invest $40 million to 45 million in capital spending in 2026 and $45 million to 50 million in 2027, and may hedge currency exposure tied to operating costs. The deal is expected to close in Q2.