Northern Oil and Gas to Invest C$350m for 25% Duvernay Light Oil Stake
NOG•Northern Oil and Gas will acquire a 25% interest in Parallax-operated Duvernay light oil assets for C$350m ($253.4m), funding via cash, free cash flow, borrowings and C$113m equity. The portfolio spans 75,000 net acres with 500 drilling locations and targets 4,000 boepd by 2027 at breakeven costs under $50 WTI.
1. Transaction Details
Northern Oil and Gas has agreed to acquire a 25% interest in light oil assets in the Duvernay East Shale Basin for C$350m ($253.4m) before adjustments, with closing expected late in Q2 2026 and an effective date of April 1, 2026.
2. Asset Portfolio and Production Outlook
The assets encompass approximately 75,000 net acres with around 500 gross drilling locations, offering about 20 years of development inventory at breakeven costs below $50 WTI. NOG projects production from its stake to reach roughly 4,000 barrels of oil equivalent per day by 2027, 80% of which will be light oil.
3. Financial Impact and Guidance
The purchase will be funded via cash, operating free cash flow, borrowings and C$113m of common stock issued at closing. NOG expects operating costs under $7.50 per boepd, capital expenditures of $40m-45m in 2026 and $45m-50m in 2027, and has updated 2026 production guidance to 143,000-148,000 boepd.




