Northern Oil and Gas, Inc. Announces 2011Third Quarter Results, Record Quarterly Production and Addition of New Chief Financial Officer and Provides Operations Update

32% Production Increase Over the Second Quarter of 2011
111% Production Increase Over the Third Quarter of 2010
Record Production, Revenue, Earnings and Adjusted EBITDA

WAYZATA, MINNESOTA — November 9, 2011 — Northern Oil and Gas, Inc. (NYSE/AMEX: NOG) (“Northern Oil”) today announced record third quarter oil and gas sales of approximately $43.7 million. For the three months ended September 30, 2011, Northern Oil had net income of $28.6 million, or $0.46 per fully diluted share. Excluding the effect of unrealized mark-to-market gains from oil hedges, Northern Oil had net income of $11.9 million, representing $0.19 per fully diluted share. The increase in net income, excluding the effect of unrealized mark-to-market gains from oil hedges represents a 141% increase from the third quarter of 2010 and a 54% increase from the second quarter of 2011.

ADDITION OF NEW CHIEF FINANCIAL OFFICER

Northern Oil today announced that Thomas W. Stoelk will join the Company as Chief Financial Officer effective December 12, 2011. Mr. Stoelk, 56, joins Northern Oil after having served since June 2005 as Vice President and Chief Financial Officer of Superior Well Services, Inc., an oil and gas well service company traded on NASDAQ until its sale in 2010 to Nabors Industries. From 1999 to 2005, Mr. Stoelk served as Senior Vice President and Chief Financial Officer of Great Lakes Energy Partners, LLC, an independent oil and gas producer. From 1994 to 1999, Mr. Stoelk served as Senior Vice President, Finance & Administration of Range Resources Corporation, an independent oil and gas producer listed on the New York Stock Exchange. Prior to joining Range Resources, Mr. Stoelk was a Certified Public Accountant and a Senior Manager with Ernst & Young LLP. Mr. Stoelk will replace Chad Winter, who has served as Chief Financial Officer since March 2010. Mr. Winter will remain with Northern Oil in the role of Vice President of Finance.

Michael Reger, Chief Executive Officer, commented, “We are extremely excited to add Tom to the Northern Oil team, and believe he will add a wealth of experience and expertise to our rapidly growing company. We believe Tom’s skill set will fit perfectly with the objectives of our company going forward. We thank Chad for his service as Chief Financial Officer and look forward to his continued contribution in his new role at our company.”

2011 THIRD QUARTER RESULTS

Oil and gas sales for the third quarter of 2011 were approximately $43.7 million, which represents a 181% increase from the third quarter of 2010 and a 23% increase from the second quarter of 2011.

Production volumes for the third quarter of 2011 were a quarterly record of 528,362 barrels of oil equivalent (“BOE”), which represents a 111% increase compared to the third quarter of 2010 and a 32% increase compared to the second quarter of 2011. These production results are within the range of our previously issued guidance.

Average daily production in the third quarter of 2011 was approximately 5,900 BOE per day (“BOEPD”). September 2011 daily production averaged approximately 7,000 BOEPD. Third quarter 2011 production consisted of approximately 93% crude oil and 7% associated natural gas and other liquids.

During the third quarter of 2011, Northern Oil added production from 88 gross (5.7 net) wells. During the nine months ending September 30, 2011, Northern Oil added production from 216 gross (17.4 net) wells. Northern Oil is currently participating in an additional 201 gross (22.8 net) Bakken or Three Forks wells drilling, awaiting completion or completing as of November 4, 2011.

During the third quarter, Northern Oil spud approximately nine net wells. From October 1, 2011 through November 4, 2011, Northern Oil has spud an additional five net wells, bringing the cumulative net wells spud in 2011 to 31 through November 4, 2011. Northern Oil reaffirms that it expects to spud at least 40 net wells in 2011.

During the three months ended September 30, 2011, Northern Oil realized an $81.53 average price per barrel of crude oil (after the effect of settled oil derivatives), compared to a $69.64 average price per barrel of crude oil (after the effect of settled oil derivatives) during the three months ended September 30, 2010. During the nine months ended September 30, 2011, Northern Oil realized a $79.22 average price per barrel of crude oil (after the effect of settled oil derivatives), compared to a $69.85 average price per barrel of crude oil (after the effect of settled oil derivatives) during the nine months ended September 30, 2010.

Production expenses for third quarter 2011 were $6.57 per BOE, compared to $4.19 per BOE for the third quarter of 2010 and $5.94 per BOE for the second quarter of 2011. The increase in production expense is primarily due to exposure to new operators and new development areas, mature wells utilizing artificial lift and the general aging of production.

Depletion expense for third quarter 2011 was $10.7 million, or $20.34 per BOE, compared to $8.3 million, or $20.83 per BOE, for the second quarter of 2011. The decrease in depletion expense per BOE is primarily due to the increase in our proved reserves relative to acreage and well development costs related to estimates of our proved reserves.

General and administrative expense, net of share based compensation, for third quarter 2011 was $1.9 million, compared to $1.2 million in the second quarter of 2011. Share based compensation for the third quarter 2011 was $2.2 million, compared to $1.5 million in the second quarter of 2011.

ADJUSTED EBITDA

Adjusted EBITDA for the third quarter 2011 was $31.9 million, or $0.51 per fully diluted share, which represents a 150% increase over Adjusted EBITDA of $12.8 million, or $0.24 per fully diluted share, for the third quarter 2010 and a 40% increase compared to the second quarter of 2011.

Northern Oil defines Adjusted EBITDA as net income before (i) interest expense, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) accretion of abandonment liability, (v) pre-tax unrealized gain and losses on the mark to market of derivative instruments and (vii) non-cash expenses relating to share-based payments recognized under Accounting Standards Codification (ASC) Topic 718. Net income excluding unrealized mark-to-market hedging gains or losses and Adjusted EBITDA are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included in our accompanying financial tables found later in this release. Northern Oil’s management believes the use of these non-GAAP measures provides useful information to investors to gain an overall understanding of Northern Oil’s financial performance. Specifically, management believes the non-GAAP results included herein provide useful information to both management and investors by excluding certain expenses, and unrealized commodity gains and losses, which management believes are not indicative of Northern Oil’s core operating results. In addition, these non-GAAP financial measures are used by Northern Oil’s management for budgeting and forecasting as well as subsequently measuring Northern Oil’s performance, and management believes that Northern Oil is providing investors with financial measures that most closely align to its internal measurement processes.

DERIVATIVE ACTIVITY

As of September 30, 2011, Northern Oil had a total volume of open commodity swaps consisting of 1,222,000 barrels of oil at a weighted average price of approximately $89.29 that settle between October 2011 and December 2012.

In addition to the swaps, as of September 30, 2011, Northern Oil had 108,000 barrels of crude oil collared between $85.00 and $101.75 that settle between October 2011 and December 2011. Subsequent to the quarter ended September 30, 2011, Northern Oil entered into two additional costless collars. As of November 7, 2011 Northern Oil also had the following production volumes secured through the use of costless collars settled in WTI NYMEX pricing.

Contract Type	Volume	Strike Price ($/Bbl)	Term
Costless Collar	67,000	$85.00/$101.75	Nov 1—Dec 31, 2011
Costless Collar	216,116	$85.00/$95.25	Nov 1, 2011—Dec 31, 2012
Costless Collar	760,794	$85.00/$98.00	Jan 1—Dec 31, 2013

ACREAGE UPDATE

During the third quarter of 2011, Northern Oil acquired leasehold interests covering an aggregate of 6,300 net mineral acres for an average of $1,880 per net acre and an aggregate cost of approximately $11.8 million. As of September 30, 2011, Northern Oil controls more than 158,000 net acres in the Williston Basin Bakken and Three Forks play.

As of November 4, 2011, Northern Oil has approximately 58,000 net acres either developed (held by production) or under the bit, which represents approximately 37% of Northern Oil’s total Bakken and Three Forks acreage position at September 30, 2011.

FOURTH QUARTER PRODUCTION GUIDANCE

Northern Oil currently expects to increase production by approximately 25% to 35% in the fourth quarter of 2011 over the third quarter of 2011, assuming typical weather scenarios in the Williston Basin in November and December. This expectation is based on robust recent completion activity and the higher average working interest per completed well that Northern Oil expects to see in the fourth quarter compared to the third quarter of 2011.

RECENT COMPLETION HIGHLIGHTS

The following table illustrates certain highlighted well completions in which Northern Oil has recently participated with a working interest (“WI”).

WELL NAME	OPERATOR	COUNTY, STATE	WI*	IP**
LOVE 11-2 1H	SAMSON RESOURCES	WILLIAMS, ND	40.00%	543
TURBO 1-21-16H	SLAWSON	DUNN, ND	36.43%	1,067
CHARLIE SORENSON 17-8 1H	BRIGHAM	MOUNTRAIL, ND	33.58%	3,913
NEPTUNE 2-15H	SLAWSON	MOUNTRAIL, ND	20.35%	2,029
BORRUD 156-101-11D-2-1H	PETRO HUNT	WILLIAMS, ND	17.48%	800
TARPON FEDERAL 21-4H	WHITING	MCKENZIE, ND	17.44%	7,009
SKEDSVOLD 150-101-4B-9-1H	PETRO HUNT	MCKENZIE, ND	16.93%	810
LINK 12-1H	ZENERGY	MCKENZIE, ND	12.60%	1,153
BARKLEY 1-12H	CONTINENTAL	MCKENZIE, ND	12.32%	1,413
HUNTER 2-18-7H	SLAWSON	MOUNTRAIL, ND	11.74%	1,357
HOLM 9-4 1H	BRIGHAM	MOUNTRAIL, ND	9.75%	3,032
HOLM 9-4 2H	BRIGHAM	MOUNTRAIL, ND	9.75%	2,196

* The WI noted above are based on Northern Oil’s internal records and are subject to verification by operators’ third-party legal counsel in connection with the preparation of final division order title opinions.

** The “IP” means the initial production (“IP”) rate expressed in barrels of oil equivalent per day. The IP rate is the 24-hour “Peak Production Rate.” Peak Production Rates may be established following the initial day of production, depending on operator design or well flowback profiles. The IP rate may be estimated based on other third party estimates or limited data available at this time. The IP is computed using barrels of oil equivalent.

CURRENT DRILLING ACTIVITY

The following table illustrates the Bakken or Three Forks wells drilling, awaiting completion or completing in which Northern Oil is participating with a working interest of at least one percent (1%) as of November 4, 2011.

	WELL NAME	OPERATOR	COUNTY, STATE	WI*
1	KNUDSVIG 12-1-160-100H 1PB	BAYTEX	DIVIDE, ND	57.11%
2	HIGHLAND 2-9H	SINCLAIR	MOUNTRAIL, ND	54.57%
3	PROBE 1-19-30H	SLAWSON	MOUNTRAIL, ND	50.06%
4	ROSE 147-99-28-2H	CONOCO	MCKENZIE, ND	50.00%
5	JOHNSON 30-31-161-99H	BAYTEX	DIVIDE, ND	47.93%
6	LORI 18-19H	FIDELITY	MOUNTRAIL, ND	47.06%
7	JOHNSON 25-36-160-100H 1BP	BAYTEX	DIVIDE, ND	45.10%
8	BRAGG 32-29-160-98H 1NC	BAYTEX	DIVIDE, ND	43.18%
9	TITAN #36-25-164-99H	SAMSON RESOURCES	DIVIDE, ND	42.60%
10	SCOUT 1-18H	SLAWSON	MOUNTRAIL, ND	41.29%
11	MUSTANG 2-22H	SLAWSON	MOUNTRAIL, ND	39.56%
12	KANDIYOHI 1-19H	EOG RESOURCES	BURKE, ND	37.47%
13	CONDOR 1-36-25H	SLAWSON	MCKENZIE, ND	35.94%
14	CHARLIE SORENSON 17-8 2-H	BRIGHAM	MOUNTRAIL, ND	33.58%
15	OLSON RANCH 1-21-16H	G3 OPERATING	ROOSEVELT, MT	33.00%
16	DENALI 13-24-163-98H	SAMSON RESOURCES	DIVIDE, ND	32.45%
17	HOLLAND 9-19H	NORTH PLAINS	WILLIAMS, ND	32.40%
18	CROSBY CREEK 1-5H	SINCLAIR	DUNN, ND	29.63%
19	STARLING 11-2-163-96H	SAMSON RESOURCES	DIVIDE, ND	29.27%
20	BLUE JAY 32-29-163-95H	SAMSON RESOURCES	DIVIDE, ND	29.13%
21	AV-SCHWARTZ-163-93-1102H-1	HESS	BURKE, ND	29.08%
22	LARK 29-32-162-96H	SAMSON RESOURCES	DIVIDE, ND	28.62%
23	OAKLAND 151-103-29B-32-1H	PETRO HUNT	MCKENZIE, ND	28.47%
24	OPPEGAARD 9-9H	NORTH PLAINS	WILLIAMS, ND	28.12%
25	VANVILLE 21-2635H	EOG RESOURCES	BURKE, ND	28.08%
26	VANVILLE 22-2623H	EOG RESOURCES	BURKE, ND	28.08%
27	STORK 20-17-162-96H	SAMSON RESOURCES	DIVIDE, ND	27.99%
28	PELICAN 26-35-162-96H	SAMSON RESOURCES	DIVIDE, ND	27.30%
29	ZI CLIFFSIDE 12-11H	ZENERGY	MCKENZIE, ND	26.80%
30	REGAL 12-1-162-98H	SAMSON RESOURCES	DIVIDE, ND	25.89%
31	FRANK 31-4-1H	GMX RESOURCES	STARK, ND	25.21%
32	STAMPEDE 2-36-25H	SLAWSON	WILLIAMS, ND	25.00%
33	CPEC RIDGEWAY 25-36-163N-101W	CRESCENT POINT	DIVIDE, ND	25.00%
34	PHEASANT 14-23-163-96H	SAMSON RESOURCES	DIVIDE, ND	24.03%
35	ENNS 28-21 1H	BRIGHAM	MOUNTRAIL, ND	23.57%
36	PERSON 24-35H	MARATHON	DUNN, ND	23.03%
37	STALLION 2-1-12H	SLAWSON	MOUNTRAIL, ND	22.41%
38	GORHMAN 14-31TFH	CONOCO	DUNN, ND	21.36%
39	GORHMAN 24-31MBH	CONOCO	DUNN, ND	21.36%
40	MARAUDER 13-24-162-98H	SAMSON RESOURCES	DIVIDE, ND	21.30%
41	THOMTE 8-5-163-99H	SAMSON RESOURCES	DIVIDE, ND	21.30%
42	CUTTHROAT 1-22H	SLAWSON	RICHLAND, ND	20.00%
43	ROVER 1-20H	SLAWSON	RICHLAND, MT	20.00%
44	CPEC JURASIN 32-29-163N-100W	SAMSON RESOURCES	DIVIDE, 2	19.95%
45	OBENOUR 150-99-21-16-1H	NEWFIELD	MCKENZIE, ND	18.75%
46	REGETH 22-1H	HESS	DUNN, ND	18.75%
47	EN-LONETREE FARMS 156-94-0805H-2	HESS	MOUNTRAIL, ND	18.71%
48	CRESCENT FARMS 7-6 1H	ZAVANNA	MCKENZIE, ND	17.88%
49	HARLAN REBSOM 1-2-11H-143-95	OXY	DUNN, ND	17.81%
50	LYNN 5502 11-10H	OASIS	WILLIAMS, ND	15.68%
51	STATE JAEGER 1-16-21H-142-94	OXY	DUNN, ND	15.63%
52	SIDONIA 41-2017H	EOG RESOURCES	MOUNTRAIL, ND	15.63%
53	EN-KIESEL 155-94-1918H-2	HESS	MOUNTRAIL, ND	15.03%
54	GO-SOLBERG 15-31H	HESS	WILLIAMS, ND	14.76%
55	NOMAD 6-7-163-99H	SAMSON RESOURCES	DIVIDE, ND	14.71%
56	BW-R PETERSON 149-99-0211H-1	HESS	MCKENZIE, ND	13.95%
57	RHODA 24-31H	MARATHON	MOUNTRAIL, ND	12.82%
58	HILLY 22-15 1H	BRIGHAM	MCKENZIE, ND	12.66%
59	MIRAMAR 1-32AH	CONTINENTAL	MCKENZIE, ND	12.63%
60	EN-PERSON 156-94-1102H-2	HESS	MOUNTRAIL, ND	12.55%
61	EN-PERSON 156-94-1102H-3	HESS	MOUNTRAIL, ND	12.55%
62	LOSTWOOD 1-1201H	EOG RESOURCES	MOUNTRAIL, ND	12.52%
63	LOSTWOOD 18-1224H	EOG RESOURCES	MOUNTRAIL, ND	12.52%
64	LOSTWOOD 19-1324H	EOG RESOURCES	MOUNTRAIL, ND	12.52%
65	LOSTWOOD 2-1301H	EOG RESOURCES	MOUNTRAIL, ND	12.52%
66	MATTER STATE 3-17H	CORNERSTONE	BURKE, ND	12.50%
67	MOE 19-18-162-100H 1PB	BAYTEX	DIVIDE, ND	12.24%
68	FERTILE 28-26H	EOG RESOURCES	MOUNTRAIL, ND	11.88%
69	MUSTANG 7-6-163-98H	SAMSON RESOURCES	DIVIDE, ND	11.72%
70	LOSTWOOD 102-3526H	EOG RESOURCES	MOUNTRAIL, ND	11.52%
71	LOSTWOOD 16-3526H	EOG RESOURCES	MOUNTRAIL, ND	11.52%
72	LOSTWOOD 20-1123H	EOG RESOURCES	MOUNTRAIL, ND	11.51%
73	LOSTWOOD 21-1402H	EOG RESOURCES	MOUNTRAIL, ND	11.51%
74	LOSTWOOD 22-1423H	EOG RESOURCES	MOUNTRAIL, ND	11.51%
75	LOSTWOOD 23-3526H	EOG RESOURCES	MOUNTRAIL, ND	11.51%
76	LOSTWOOD 6-1102H	EOG RESOURCES	MOUNTRAIL, ND	11.51%
77	EN-SELBY 157-93-0805H-1	HESS	MOUNTRAIL, ND	11.18%
78	GABRIEL 3-36-25H	SLAWSON	MCKENZIE, ND	10.94%
79	GORDON PAVLICEK 1-17-20H 141-95	OXY	DUNN, ND	10.94%
80	SIDONIA 9-35H	EOG RESOURCES	MOUNTRAIL, ND	10.78%
81	CLEARWATER 25-3202H	EOG RESOURCES	MOUNTRAIL, ND	10.29%
82	LESLIE 42X-13	XTO	MCKENZIE, ND	10.16%
83	TABOO 1-25-36H	SLAWSON	MCKENZIE, ND	10.00%
84	ELSIE DVORAK 1-8-17H-141-96	OXY	DUNN, ND	9.74%
85	SHORT PRAIRIE 2-1011H	EOG RESOURCES	WILLIAMS, ND	9.70%
86	JOHNSON 1-3H	SINCLAIR	MCKENZIE, ND	9.42%
87	GJOA LYNN 10012H	ARSENAL ENERGY	MOUNTRAIL, ND	9.38%
88	BROWN 30-19 2H	BRIGHAM	MOUNTRAIL, ND	9.25%
89	SQUADRON 1-15-14H	SLAWSON	ROOSEVELT, MT	8.78%
90	ANDERSON 12-18H	TRUE OIL	MCKENZIE, ND	8.66%
91	CITADEL 2-11-2H	SLAWSON	ROOSEVELT, MT	7.79%
92	SCHILKE 16-21-1H	NORTH PLAINS	WILLIAMS, ND	7.69%
93	QUALE 1-1H	CONTINENTAL	MCKENZIE, ND	7.69%
94	WHITE 157-100-17B-20-1H	PETRO HUNT	WILLIAMS, ND	7.55%
95	1-H OSMOND 3-10	NEWFIELD	WILLIAMS, ND	7.51%
96	WALDOCK 21-16H	MARATHON	MCLEAN, ND	7.05%
97	LIBERTY 24-2531H	EOG RESOURCES	MOUNTRAIL, ND	6.76%
98	THORVALD 2-6H	CONTINENTAL	DUNN, ND	6.70%
99	ROSENVOLD 1-30H	CONTINENTAL	DIVIDE, ND	6.44%
100	HALLIDAY 2-25-36H	HUNT OIL	DUNN, ND	6.38%
101	KANDIYOHI 5-3031H	EOG RESOURCES	BURKE, ND	6.36%
102	LONETREE 2758 43-9H	OASIS	ROOSEVELT, MT	6.25%
103	BW-HELGA STENSETH 29-1H	HESS	MCKENZIE, ND	6.25%
104	EN-JOHNSON -A 155-94-2932H-2	HESS	MOUNTRAIL, ND	6.25%
105	KANDIYOHI 21-3427H	EOG RESOURCES	BURKE, ND	6.25%
106	BUCKLEY 1-9H	CONTINENTAL	RICHLAND, MT	6.25%
107	HAWKEYE 16-21 1-H	BRIGHAM	WILLIAMS, ND	6.25%
108	DAVID SADOWSKY 1-11-14H-142-96	OXY	DUNN, ND	6.25%
109	KATE 2-19H	CONTINENTAL	DUNN, ND	6.15%
110	CLEARWATER 16-3301H	EOG RESOURCES	MOUNTRAIL, ND	6.07%
111	GO-ALASKON-156-97-3427H-1	HESS	WILLIAMS, ND	5.94%
112	1-H HUNTER 17-20	NEWFIELD	WILLIAMS, ND	5.55%
113	SIDONIA 26-2413H	EOG RESOURCES	MOUNTRAIL, ND	5.55%
114	SETTERLUND 159-94-28B-33-1H	PETRO HUNT	BURKE, ND	5.31%
115	KELTER 7-6H	ZENERGY	MCKENZIE/WILLIAMS, ND	5.02%
116	BRUCE 5-8 1H	ZAVANNA	WILLIAMS, ND	4.69%
117	SONOMA 19-30-161-92HOR	SAMSON RESOURCES	BURKE, ND	4.23%
118	HONOLULU 1-22H	CONTINENTAL	MCKENZIE, ND	4.22%
119	OXY OLSON 160-90-10-P-1H	OXY	BURKE, ND	4.17%
120	FROEHLICH 41-9TFH	WHITING	STARK, ND	4.02%
121	AMBUSH 1-31-30H	SLAWSON	WILLIAMS, ND	3.96%
122	EN-JOHNSON 155-94-2017H-2	HESS	MOUNTRAIL, ND	3.91%
123	JOHNSON 44-32H	MARATHON	MOUNTRAIL, ND	3.87%
124	ZEPHYR 2-36H	SLAWSON	MOUNTRAIL, ND	3.76%
125	CHALMERS 5300 31-19H	OASIS	MCKENZIE, ND	3.45%
126	WANNEMACHER 1-4-9H-142-95	OXY	DUNN, ND	3.14%
127	WILLIAM 41X-06	XTO	MCKENZIE, ND	3.14%
128	GO-GOLDEN VALLEY 157-96-2833H-1	HESS	WILLIAMS, ND	3.13%
129	KOUFAX 3-10 1H	ZAVANNA	MCKENZIE, ND	3.13%
130	EAST GRIZZLY FEDERAL 3-25-13-3H	KODIAK	MCKENZIE, ND	3.13%
131	HARDSCRABBLE 10-2536H	EOG RESOURCES	WILLIAMS, ND	3.13%
132	GLENDON 1-17H	CONTINENTAL	WILLIAMS, ND	3.05%
133	EN-THRONSON 154-94-2029H-1	HESS	MOUNTRAIL, ND	2.88%
134	MARVIN 27-34 1H	BRIGHAM	MCKENZIE, ND	2.86%
135	MOE 29-32-162-100H 1BP	BAYTEX	DIVIDE, ND	2.79%
136	ABELMANN STATE 21-16 2H	BRIGHAM	MCKENZIE, ND	2.73%
137	EN MOORE 157-93-1819H-1	HESS	MOUNTRAIL, ND	2.51%
138	VERLYN STROMMEN 34-8H	MARATHON	DUNN, ND	2.50%
139	EN-NORSTEDT 157-93-1720H-1	HESS	MOUNTRAIL, ND	2.50%
140	HELLING TRUST 11-15H	OASIS	MOUNTRAIL, ND	2.41%
141	LEISETH 1-24H	SM ENERGY	MCKENZIE, ND	2.34%
142	WOLTER 13-23H	SM ENERGY	WILLIAMS, ND	1.92%
143	EN-HYNEK155-93-0112H-2	HESS	MOUNTRAIL, ND	1.82%
144	EN-HYNEK155-93-0112H-3	HESS	MOUNTRAIL, ND	1.82%
145	JOYCE REPP 21-17H	MARATHON	DUNN, ND	1.70%
146	BARSTAD 23-14 1H	BRIGHAM	MOUNTRAIL, ND	1.65%
147	BARSTAD 23-14 2H	BRIGHAM	MOUNTRAIL, ND	1.65%
148	ELEANOR TWIST 1-10-3H-143-95	OXY	DUNN, ND	1.57%
149	OBRIGEWITCH 11-17TFH	WHITING	STARK, ND	1.56%
150	SKUNK CREEK 2-8-17-15H	KODIAK	DUNN, ND	1.56%
151	SKUNK CREEK 2-8-17-14H3	KODIAK	DUNN, ND	1.56%
152	FRASER FEDERAL 5300 24-34H	OASIS	MCKENZIE, ND	1.52%
153	SCHILKE 1-30H	CONTINENTAL	DIVIDE, ND	1.51%
154	PALERMO 2-6-34H	HUNT OIL	MOUNTRAIL, ND	1.47%
155	TIM ECKELBERG 44-22H	MARATHON	DUNN, ND	1.39%
156	HARDSCABBLE 8-0409H	EOG RESOURCES	WILLIAMS, ND	1.33%
157	CROSSBOW 1-7-6H	SLAWSON	MCKENZIE, ND	1.30%
158	HOVDEN 15-1H	HESS	DUNN, ND	1.30%
159	OSTLUND 11-14H	MARATHON	MOUNTRAIL, ND	1.30%
160	JAMES HILL 10-0112H	EOG RESOURCES	MOUNTRAIL, ND	1.25%
161	RAYMOND 21X-5	XTO	WILLIAMS, ND	1.16%
162	DAWSON 5494 13-1H	OASIS	MOUNTRAIL, ND	1.13%
163	EN-RHODE 157-94-3625H-1	HESS	MOUNTRAIL, ND	1.07%
164	CLIFFORD BAKKE 26-35 3H	BRIGHAM	MOUNTRAIL, ND	1.04%
165	CLEARWATER 4-11H	EOG RESOURCES	MOUNTRAIL, ND	1.04%
166	RON 28-33 #1H	BRIGHAM	MCKENZIE, ND	1.04%

MANAGEMENT COMMENT

Michael Reger, Chief Executive Officer, commented, “With approximately 37% of our Bakken and Three Forks position developed or under the bit, we are moving ahead at an excellent pace. We believe our expertise and specialty in non-operated interests continues to yield excellent results and we continue to add meaningful acreage, production and cash flow. We wish to recognize the substantial contributions in advancing this play made by our operating partners and remain extremely excited about the continued evolution of oil exploration and production in the Williston Basin.”

THIRD QUARTER EARNINGS RELEASE TELECONFERENCE CALL

In conjunction with Northern Oil’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Wednesday, November 9, 2011 at 10:00 a.m. Central Time. Details for the conference call are as follows:

Dial-In Number: (888) 684-1259 (US/Canada) and (913) 312-1471(International)

Conference ID: 4545608 - Northern Oil and Gas Third Quarter Earnings Release

Replay Dial-In Number: (888) 203-1112 (US/Canada) and (719) 457-0820 (International)

Replay Access Code: 4545608 - Replay will be available through November 23, 2011

ABOUT NORTHERN OIL AND GAS

Northern Oil and Gas, Inc. is an exploration and production company based in Wayzata, Minnesota. Northern Oil's core area of focus is the Williston Basin Bakken and Three Forks play in North Dakota and Montana.

More information about Northern Oil and Gas, Inc. can be found at www.NorthernOil.com.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the regions in which our Company conducts business, oil and gas prices, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting our Company’s operations, products, services and prices.

We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.

CONTACT:

Investor Relations

Erik Nerhus

952-476-9800

NORTHERN OIL AND GAS, INC.

CONDENSED BALANCE SHEETS

SEPTEMBER30, 2011 AND DECEMBER 31, 2010

ASSETS

(UNAUDITED)

				September 30,	December 31,
				2011	2010
CURRENT ASSETS
	Cash and Cash Equivalents			$ 8,265,649	$ 152,110,701
	Trade Receivables			44,561,467	22,033,647
	Prepaid Drilling Costs			28,016,106	13,225,650
	Prepaid Expenses			457,492	345,695
	Other Current Assets			290,306	475,967
	Derivative Asset			8,475,550	-
	Short - Term Investments			-	39,726,700
	Deferred Tax Asset			-	5,100,000
Total Current Assets				90,066,570	233,018,360

PROPERTY AND EQUIPMENT
	Oil and Natural Gas Properties, Full Cost Method of Accounting
			Proved	400,904,005	158,846,475
			Unproved	146,459,279	136,135,163
	Other Property and Equipment			2,660,240	2,479,199
Total Property and Equipment				550,023,524	297,460,837
	Less - Accumulated Depreciation and Depletion			48,329,024	22,152,356
Total Property and Equipment, Net				501,694,500	275,308,481

DERIVATIVE ASSET				2,881,377	-

DEBT ISSUANCE COSTS				1,329,302	1,367,124

Total Assets				$ 595,971,749	$ 509,693,965

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts Payable			$ 52,519,516	$ 48,500,204
	Accrued Expenses			2,960,868	2,829
	Derivative Liability			-	11,145,319
	Other Liabilities			18,574	18,574
	Deferred Tax Liability			2,531,000	-
Total Current Liabilities				58,029,958	59,666,926

LONG-TERM LIABILITIES
	Revolving Credit Facility			15,000,000	-
	Derivative Liability			-	5,022,657
	Other Noncurrent Liabilities			744,106	477,900
	Deferred Tax Liability			27,699,000	9,167,000
Total Long-Term Liabilities				43,443,106	14,667,557

Total Liabilities				101,473,064	74,334,483

COMMITMENTS AND CONTINGENCIES (10-Q FN)
STOCKHOLDERS' EQUITY
	Preferred Stock, Par Value $.001; 5,000,000Authorized, No Shares Outstanding			-	-
	Common Stock, Par Value $.001; 95,000,000 Authorized, (9/30/2011 -63,155,424
		Shares Outstanding and 12/31/2010 – 62,129,424 Shares Outstanding)		63,155	62,129
	Additional Paid-In Capital			444,937,243	428,484,092
	Retained Earnings			49,751,472	7,759,192
	Accumulated Other Comprehensive Loss			(253,185)	945,931)
Total Stockholders' Equity				494,498,685	435,359,482

Total Liabilities and Stockholders' Equity				$ 595,971,749	$ 509,693,965

NORTHERN OIL AND GAS, INC.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINEMONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

2011

2010

2011

2010

REVENUES

Oil and Gas Sales

$ 43,680,619

$ 15,541,520

$ 106,203,904

$ 35,575,240

(Loss) Gain on Settled Derivatives

(1,824,719)

776,010

(10,695,006)

902,946

Mark-to-Market Gain (Loss) of Derivative Instruments

27,105,400

(6,449,577)

26,675,003

(3,189,194)

Other Revenue

88,738

15,868

218,984

48,116

Total Revenues

69,050,038

9,883,821

122,402,885

33,337,108

OPERATING EXPENSES

Production Expenses

3,910,859

1,084,769

8,542,761

1,978,526

Production Taxes

4,261,407

1,604,608

10,188,308

3,274,751

General and Administrative Expense

4,073,988

1,624,071

10,113,995

5,242,582

Depletion of Oil and Gas Properties

10,749,384

3,767,712

25,962,463

8,252,153

Depreciation and Amortization

75,597

60,300

214,205

111,197

Accretion of Discount on Asset Retirement Obligations

7,781

18,025

20,305

30,777

Total Expenses

23,079,016

8,159,485

55,042,037

18,889,986

INCOME FROM OPERATIONS

45,971,022

1,724,336

67,360,848

14,447,122

OTHER INCOME (EXPENSE)

Interest Expense

(182,499)

(145,182)

(425,687)

(455,704)

Interest Income

1,699

28,072

567,327

303,860

Gain (Loss) on Available for Sale Securities

215,092

(197,556)

Total Other Income (Expense)

(180,800)

(117,110)

356,732

(349,400)

INCOME BEFORE INCOME TAXES

45,790,222

1,607,226

67,717,580

14,097,722

INCOME TAX PROVISION

17,173,000

620,000

25,725,300

5,430,000

NET INCOME

$28,617,222

$ 987,226

$ 41,992,280

$ 8,667,722

Net Income Per Common Share - Basic

$ 0.46

$ 0.02

$ 0.68

$ 0.18

Net Income Per Common Share - Diluted

$ 0.46

$ 0.02

$ 0.68

$ 0.18

Weighted Average Shares Outstanding – Basic

61,919,641

51,519,732

61,708,537

48,544,749

Weighted Average Shares Outstanding - Diluted

62,265,502

52,145,181

62,114,115

49,127,706

NORTHERN OIL AND GAS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(UNAUDITED)

					Nine Months Ended
					September 30,
					2011	2010
CASH FLOWS FROM OPERATING ACTIVITIES
	Net Income				$ 41,992,280	$ 8,667,722
	Adjustments to Reconcile Net Income to Net Cash Provided by
			Operating Activities:
		Depletion of Oil and Gas Properties			25,962,463	8,252,153
		Depreciation and Amortization			214,205	111,197
		Amortization of Debt Issuance Costs			286,969	366,729
		Accretion of Discount on Asset Retirement Obligations			20,305	30,777
		Deferred Income Taxes			25,723,000	5,430,000
		Net (Gain) Loss on Sale of Available for Sale Securities			(215,092)	197,556
		Unrealized (Gain) Loss on Derivative Instruments			(26,675,003)	3,189,194
		Amortization of Deferred Rent			(13,931)	(13,930)
		Share - Based Compensation Expense			5,552,245	2,730,779
		Changes in Working Capital and Other Items:
				Increase in Trade Receivables	(22,527,820)	(10,816,333)
				Increase in Prepaid Expenses	(111,797)	(274,307)
				Decrease (Increase) in Other Current Assets	185,661	(102,534)
				Increase in Accounts Payable	(1,028,434)	8,666,764
				Decrease (Increase) in Accrued Expenses	20,815	(123,153)
				Net Cash Provided By Operating Activities	49,385,866	26,312,614

CASH FLOWS FROM INVESTING ACTIVITIES
	Purchases of Other Equipment and Furniture				(181,041)	(1,956,087)
	Increase in Prepaid Drilling Costs				(14,790,456)	(5,598,781)
	Proceeds from Sale of Oil and Gas Properties				5,027,162	237,877
	Purchase of Available for Sale Securities				(18,381,690)	-
	Proceeds from Sale of Available for Sale Securities				58,606,328	25,890,901
	Purchase of Oil and Gas Properties and Development Capital Expenditures				(239,762,074)	(92,812,276)
				Net Cash Used For Investing Activities	(209,481,771)	(74,238,366)

CASH FLOWS FROM FINANCING ACTIVITIES
	Payments on Line of Credit				-	(834,492)
	Advances on Revolving Credit Facility				21,000,000	5,300,000
	Payments on Revolving Credit Facility				(6,000,000)	(5,300,000)
	Repayment of Subordinated Notes				-	(100,000)
	Debt Issuance Costs Paid				(249,147)	(386,179)
	Proceeds from Exercise of Warrants				1,500,000	-
	Proceeds from Issuance of Common Stock - Net of Issuance Costs				-	82,500,000
				Net Cash Provided by Financing Activities	16,250,853	81,179,329

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS					(143,845,052)	33,253,577

CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD					152,110,701	6,233,372

CASH AND CASH EQUIVALENTS – END OF PERIOD					$ 8,265,649	$ 39,486,949


Supplemental Disclosure of Cash Flow Information
	Cash Paid During the Period for Interest				$ 17,965	$ 169,232
	Cash Paid During the Period for Income Taxes				$ 2,300	$ -

	Non-Cash Financing and Investing Activities:
		Purchase of Oil and Gas Properties through Issuance of Common Stock			$ -	$ 12,679,422
		Payment of Compensation through Issuance of Common Stock			$ 17,391,413	$ 5,956,526
		Capitalized Asset Retirement Obligations			$ 259,832	$ 151,009

USE OF NON GAAP FINANCIAL MEASURES

Northern Oil and Gas, Inc.

Reconciliation of GAAP Net Income to Non-GAAP Net Income Excluding

Unrealized Mark-to-Market Hedging Gains and Losses

Three Months Ended

Nine Months Ended

September 30,

2011

2010

2011

2010

Net Income

$ 28,617,222

$ 987,226

$ 41,992,280

$ 8,667,722

Mark-to-Market of Derivative Instruments

(27,105,400)

6,449,577

(26,675,003)

3,189,194

Tax Impact

10,339,000

(2,516,000)

10,171,000

(1,244,000)

Net Income without Effect of Certain Items

$ 11,850,822

$ 4,920,803

$ 25,488,277

$ 10,612,916

Net Income Per Common Share - Basic

$ 0.19

$ 0.10

$ 0.41

$ 0.22

Net Income Per Common Share - Diluted

$ 0.19

$ 0.09

$ 0.41

$ 0.22

Weighted Average Shares Outstanding – Basic

61,919,641

51,519,732

61,708,537

48,544,749

Weighted Average Shares Outstanding - Diluted

62,265,502

52,145,181

62,114,115

49,127,706

Net Income Per Common Share - Basic

$ 0.46

$ 0.02

$ 0.68

$ 0.18

Change due to Mark-to-Market of Derivative Investments

(0.44)

0.13

(0.43)

0.07

Change due to Tax Impact

0.17

(0.05)

0.16

(0.03)

Net Income without Effect of Certain Items Per Common Share - Basic

$ 0.19

$ 0.10

$ 0.41

$ 0.22

Net Income Per Common Share - Diluted

$ 0.46

$ 0.02

$ 0.68

$ 0.18

(As Reported)

Change due to Mark-to-Market of Derivative Investments

(0.44)

0.12

(0.43)

0.07

Change due to Tax Impact

0.17

(0.05)

0.16

(0.03)

Net Income without Effect of Certain Items Per Common Share - Diluted

$ 0.19

$ 0.09

$ 0.41

$ 0.22

Northern Oil and Gas, Inc.

Reconciliation of Adjusted EBITDA

Three Months Ended

Nine Months Ended

September 30,

2011

2010

2011

2010

Net Income

$ 28,617,222

$ 987,226

$ 41,992,280

$ 8,667,722

Add Back:

Income Tax Provision

17,173,000

620,000

25,725,300

5,430,000

Depreciation, Depletion, Amortization

and Accretion

10,832,762

3,846,037

26,196,973

8,394,127

Share Based Compensation

2,188,900

724,410

5,552,245

2,730,779

Mark-to-Market Derivative Instruments

(27,105,400)

6,449,577

(26,675,003)

3,189,194

Interest Expense

182,499

145,182

425,687

455,704

Adjusted EBITDA

$ 31,888,983

$ 12,772,432

$ 73,217,482

$ 28,867,526

Adjusted EBITDA Per Common Share - Basic

$ 0.52

$ 0.25

$ 1.19

$ 0.59

Adjusted EBITDA Per Common Share - Diluted

$ 0.51

$ 0.24

$ 1.18

$ 0.59

Weighted Average Shares Outstanding – Basic

61,919,641

51,519,732

61,708,537

48,544,749

Weighted Average Shares Outstanding - Diluted

62,265,502

52,145,181

62,114,115

49,127,706

Northern Oil and Gas, Inc.

Reconciliation of Adjusted EBITDA Per Common Share - Basic

Three Months Ended

Nine Months Ended

September 30,

2011

2010

2011

2010

Net Income Per Common Share - Basic

$ 0.46

$ 0.02

$ 0.68

$ 0.18

(As Reported)

Add Back:

Income Tax Provision

0.28

0.01

0.42

0.11

Depreciation, Depletion, Amortization,

and Accretion

0.18

0.08

0.42

0.17

Share Based Compensation

0.04

0.01

0.09

0.06

Mark-to-Market Derivative Instruments

(0.44)

0.13

(0.43)

0.06

Interest Expense

0.00

0.01

Adjusted EBITDA Per Common Share - Basic

$ 0.52

$ 0.25

$ 1.19

$ 0.59

(Adjusted for Non-GAAP Measurements)

Northern Oil and Gas, Inc.

Reconciliation of Adjusted EBITDA Per Common Share – Diluted

Three Months Ended

Nine Months Ended

September 30,

2011

2010

2011

2010

Net Income Per Common Share - Diluted

$ 0.46

$ 0.02

$ 0.68

$ 0.18

(As Reported)

Add Back:

Income Tax Provision

0.28

0.01

0.41

0.11

Depreciation, Depletion, Amortization

and Accretion

0.17

0.08

0.42

0.17

Share Based Compensation

0.04

0.01

0.09

0.06

Mark-to-Market Derivative Instruments

(0.44)

0.12

(0.43)

0.06

Interest Expense

0.00

0.01

Adjusted EBITDA Per Common Share - Diluted

$ 0.51

$ 0.24

$ 1.18

$ 0.59

(Adjusted for Non-GAAP Measurements)

Press Release PDF:

nog_2011_q3_press_release_(nov_8_2011)_final_9pm.pdf

Investor Relations Contact

Erik Nerhus

(952) 476-9800

enerhus@northernoil.com