Quarterly report pursuant to Section 13 or 15(d)

ORGANIZATION AND NATURE OF BUSINESS

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ORGANIZATION AND NATURE OF BUSINESS
6 Months Ended
Jun. 30, 2011
ORGANIZATION AND NATURE OF BUSINESS [Abstract]  
ORGANIZATION AND NATURE OF BUSINESS
NOTE 1     ORGANIZATION AND NATURE OF BUSINESS
 
Northern Oil and Gas, Inc. (the “Company,” “our,” “we,” “us” and words of similar import) is a growth-oriented independent energy company engaged in the acquisition, exploration, exploitation and development of crude oil and natural gas properties.  The Company's common stock trades on the NYSE Amex Equities Market under the symbol “NOG”.
 
The Company acquires interests in crude oil and natural gas acreage and drilling projects, primarily within the Williston Basin Bakken Shale formation. The Company is continuing to develop its substantial leasehold acreage in the Bakken play and will target additional opportunities in the Bakken and Three Forks play.  The Company owns working interests in wells, and does not lease land to operators.  Management believes the Company's experience gained by participating as a non-operating partner has given the Company valuable data on completions and will help its operating partners control well costs and enhance results as the Company continues to develop its higher working interest sections in the remainder of 2011 and beyond.
 
The Company participates on a heads up basis proportionate to its working interest in declared drilling units. As of June 30, 2011, the Company's principal assets included approximately 158,046 net acres located in the northern region of the United States, of which the Company held leasehold interests on approximately 155,353 net mineral acres in the Williston Basin targeting the Bakken and Three Forks formations. The Company continues to expand its position through aggressive acquisition and leasing programs.
 
The Company's land acquisition and field operations, along with various other services, are primarily outsourced through the use of consultants and drilling partners.  The Company will continue to retain independent contractors to assist in operating and managing the prospects and other administrative functions.  With the additional acquisition of crude oil and natural gas properties, the Company intends to continue to use both in-house employees and outside consultants to develop and exploit its leasehold interests.
 
As an independent crude oil and natural gas producer, the Company's revenue, profitability and future rate of growth are substantially dependent on prevailing prices of crude oil and natural gas.  A substantial or extended decline in crude oil or natural gas prices could have a material effect on the Company's financial position, results of operations, cash flows and access to capital, and on the quantities of natural gas and crude oil reserves that can be economically produced.