On January 6, 2009, Northern Oil and Gas, Inc. (the "Company") announced that it has entered into a letter of intent with a financial institution for a senior secured, reserve-based revolving credit facility providing up to $25 million of financing for future drilling activities. As proposed, $15 million of financing would initially be made available for drilling projects, specifically developmental drilling on the Company's North Dakota Bakken and Three Forks position. The remaining $10 million of financing under the facility could become available upon subsequent recalculations of reserves based on the deployment of the immediately-available principal amount. The facility will be available for a period of four years and will feature a floating rate of interest competitive with other senior secured revolving credit facilities provided to other companies in the oil and gas industry. The facility will be subject to the usual and customary financial covenants. Final execution of a definitive agreement regarding the credit facility is subject to various conditions, including completion of due diligence and negotiation of definitive loan documentation, among other things.

On January 6, 2009, the Company also announced its 2009 capital budget. The Company participates on a heads-up basis in the drilling of wells in spacing units containing the Company's acreage. Based on current permitting activities, the Company anticipates the following capital expenditures and operating expenses in 2009:

Developmental Bakken Drilling                                       $ 31,000,000

Conventional Exploratory Drilling
$    850,000

Capitalized Costs, Interest
 $  1,200,000

General & Administrative Expenses                                   $  2,000,000

Total Capital Expenditure and G&A                                   $ 35,050,000

A copy of the press release is included as exhibit 99.1 to this Form 8-K.