RELATED PARTY TRANSACTIONS
|9 Months Ended|
Sep. 30, 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 September 30, 2015, such wells included 48 gross (8.1 net) producing wells, and an additional 0 gross (0.0 net) wells that were drilling or awaiting completion. Through September 30, 2015, Northern has incurred $86.2 million in connection with its working interest in these 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 September 30, 2015, the Company’s accounts receivable and accounts payable balances with Emerald were $1.5 million and $2.1 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, respectively. The Company recorded total revenues of $7.1 million and $18.7 million from Emerald for the nine months ended September 30, 2015 and 2014, respectively.
All transactions involving related parties are approved or ratified by the Company’s Audit Committee.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/presentationRef