The ratings on Wayzata, Minnesota-based Northern Oil and Gas Inc. (NOG) reflect its "vulnerable" business risk profile, "aggressive" financial risk profile, and "adequate" liquidity assessments. These assessments are based on the company's relatively small asset base and production levels, lack of geographical diversification, aggressive growth strategy, negative cash flow generation, and a non-operator business model that depends on other "operator" companies' drilling plans and limits NOG's ability to pace or channel its growth. The ratings also reflect the company's significant exposure to robust crude oil prices, a favorable cost structure and a sizeable acreage position, for the rating level. NOG's mid-year 2012 proved reserve base totals a relatively small 57 million barrels of oil equivalent (boe), 48% of which was
