Northern Oil and Gas, Inc. Announces Additional Debt Exchanges; Unsecured Debt Now Down $77 M

Northern Oil and Gas, Inc. today announced that it has entered into two additional independent, separately negotiated exchange agreements with holders (the “Investors”) of its 8% senior unsecured notes due 2020 (the “Notes”). Together the agreements represent a debt reduction of $13.5 million par value of Notes. Through these and other recently announced exchanges since the beginning of June 2018, Northern has entered into agreements to retire $77.2 million of its remaining Notes, permanently reducing interest expenses by $6.2 million on an annual basis.

In the first exchange for the Notes, Northern will initially issue 3,244,657 shares of common stock to the Investor in exchange for $11,954,000 par value of Notes, and may be required to issue additional shares to the Investor based on Northern's stock price performance over a specified period. In the second exchange for the Notes, Northern will issue $1,567,500 in common stock to the Investor in exchange for $1,500,000 par value of Notes, with the number of shares of common stock determined based on a forward pricing mechanism.

MANAGEMENT COMMENT
“Northern’s balance sheet is now undeniably strong as we focus on closing our pending Pivotal and W Energy acquisitions,” said Nick O’Grady, Northern’s Chief Financial Officer. “The continued improvement of our credit metrics combined with the substantially accretive per share metrics of our stated growth strategy will create value for the foreseeable future.”

This announcement is neither an offer to exchange nor a solicitation of an offer to exchange any securities. The exchanges are exempt from registration under Section 3(a)(9) of the Securities Act of 1933.