Northern Oil & Gas Buys Canadian Stake in Duvernay Shale Basin

Northern Oil & Gas Inc., a US energy firm, has made its first foray into international assets by acquiring a stake in Canadian oil and gas properties.

The company will pay Parallax Energy Operating Inc. C$350 million ($254 million) in cash and stock for a 25% interest in oil-producing properties and tens of thousands of acres in the Duvernay shale basin in Alberta, according to a statement on Tuesday.

Nicholas O'Grady, Northern's chief executive officer, said that this deal could become a multibillion-dollar investment for the company. He also stated that they have been seeking a deal in Canada for a few years and will continue to evaluate future possible investments.

This move marks a change of investor sentiment under Prime Minister Mark Carney's government, which has loosened environmental rules on the fossil-fuel sector to spur development. Shell Plc recently struck a deal to buy Canadian shale producer Arc Resources Ltd. for $13.6 billion.