Northern Oil and Gas said on Tuesday it would buy a 25% stake in Parallax Energy Operating’s light-oil assets in Canada’s Duvernay shale for an initial purchase price of about C$350 million ($253.60 million).
The non-operated stake will mark NOG’s entry into Canada and expand its inventory of low-cost drilling locations. Duvernay shale remains less developed than major U.S. oil basins such as the Permian and contains large undeveloped drilling inventory.
* Northern Oil and Gas said it will pay about C$113 million in stock, with the remainder in cash. It also agreed to pay an additional C$25 million, in cash or stock, in early 2028 if oil prices meet certain targets through 2027.
* The assets include more than 500 high-quality drilling locations with low breakeven costs, and are largely operated by Parallax under a long-term development agreement with multi-year drilling commitments, NOG added.
* The company said it has formed a wholly owned Canadian subsidiary, NOG Energy Canada Ltd, and expects to close the deal late in the second quarter of 2026.
* NOG said it expects the assets to produce about 4,000 boepd in 2027 and revised its 2026 production guidance to 143,000-148,000 boepd from its prior outlook of 139,000-143,000 boepd.
(Reporting by Varun Sahay in Bengaluru; Editing by Joyjeet Das)