Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2015
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS
NOTE 7     RELATED PARTY TRANSACTIONS

The Company is a non-operating participant in a number of wells in North Dakota that are operated by Emerald Oil, Inc. (“Emerald”), by virtue of leased acreage or working interests held by the Company in drilling units operated by Emerald.  As of March 31, 2015, such wells included 43 gross (7.8 net) producing wells, and an additional 5 gross (0.3 net) wells that were drilling or awaiting completion.  Based on authorizations for expenditure (or AFEs) provided by Emerald with respect to each of the wells, the total drilling and completion costs for these 48 gross wells was estimated at approximately $492.4 million, approximately $82.2 million of which is attributable to Northern Oil’s working interest in the wells.  James Russell (J.R.) Reger is a current director (and until March 2014 was an executive officer) of Emerald, which is a publicly-traded company.  J.R. Reger is also the brother of Northern Oil’s Chairman and Chief Executive Officer, Michael Reger.  At March 31, 2015, the Company’s accounts receivable and accounts payable balances with Emerald were $1.2 million and $7.6 million, respectively.  At December 31, 2014, the Company’s accounts receivable and accounts payable balances with Emerald were $2.9 million and $8.4 million.  The Company recorded total revenues of $2.0 million and $5.3 million from Emerald for the three months ended March 31, 2015 and 2014, respectively.

All transactions involving related parties are approved or ratified by the Company’s Audit Committee.