Northern Oil and Gas Inc. on Sept. 2 announced its stockholders approved a 1-for-10 reverse split of the company’s common stock expected to boost the Northern’s share price.
Minneapolis-based Northern Oil and Gas, which touts itself as being the largest Williston Basin nonoperator, first unveiled its plans in June for a reverse stock split ranging from any whole number between 1-for-6 to 1-for-10, as determined by the Northern board of directors.
“The reverse stock split will reduce the number of Northern shares of common stock outstanding and is expected to increase the per share trading price of Northern’s common stock, which may improve marketability and facilitate its trading,” the company said in a June 23 statement.
Trading of Northern’s stock closed Sept. 2 at about $0.65 per share, a roughly 70% drop from its stock price at the start of 2020.
At a special meeting of stockholders on Aug. 17, 95% of Northern stockholders voted in favor of the reverse stock split, according to a company release on Sept. 2.
Beginning on Sept. 21, the company’s common stock will trade on the NYSE American on a split-adjusted basis.
When the reverse stock split becomes effective, the number of authorized shares of the company’s common stock will decrease to 135 million. The number of issued and outstanding shares will be reduced to approximately 43.6 million from 436.4 million, based on shares outstanding as of Aug. 31.
No fractional shares will be issued following the reverse stock split. In lieu of any fractional shares, any holder of less than one share of common stock will be entitled to receive cash for such holder’s fractional share, the company release said.
The reverse stock split will not impact the authorized number of shares of preferred stock of the company.
Northern’s common stock will continue to trade on the NYSE American under the symbol “NOG.”
Per-acre prices varied widely between $15 an acre and $11,353 an acre.
The Austin Chalk assessment, which includes the Tokio and Eutaw formations, is believed to also hold about 41.5 trillion cubic feet of natural gas, the report shows.
The wells were drilled by the Transocean Barents semisubmersible rig this summer in the Flemish Pass Basin.