Northern Oil and Gas Inc. (NYSE: NOG) announced it will acquire a 25% non-operated interest in light oil assets in Alberta's Duvernay Shale for CA$350 million ($259 million), marking the company's entry into the Canadian market.

The acquisition involves assets operated by Parallax Energy Operating Inc., a portfolio company of investment funds managed by Carnelian Energy Capital Management. NOG will pay approximately CA$113 million ($83.5 million) in company stock and the remainder in cash, according to the press release.

The assets include 75,000 net acres with current production and an estimated 500 gross drilling locations. NOG expects the properties to produce approximately 4,000 barrels of oil equivalent per day by 2027, with about 80% consisting of light oil.

The transaction includes a long-term joint development agreement with multi-year drilling commitments. NOG plans to spend $40-45 million in capital expenditures on the assets in 2026 and $45-50 million in 2027.

The deal carries an effective date of April 1, 2026, with closing expected in late second quarter 2026. Additional contingent consideration of CA$25 million ($18.5 million) could be paid in early 2028 if certain oil price targets are met through 2027.

NOG updated its 2026 guidance, raising annual production estimates to 143,000-148,000 barrels of oil equivalent per day from the previous range of 139,000-143,000. Annual oil production guidance increased to 71,500-73,500 barrels per day.

Citigroup Global Markets advised NOG on the transaction, while National Bank Capital Markets and RBC Capital Markets advised Parallax.