May 26 (Reuters) - Northern Oil and Gas NOG.N said on Tuesday it would buy a 25% stake in Parallax Energy Operating’s light-oil assets in Canada's Duvernay shale for an initial purchase price of about C$350 million ($253.60 million).

The non-operated stake will mark NOG’s entry into Canada and expand its inventory of low-cost drilling locations. Duvernay shale remains less developed than major U.S. oil basins such as the Permian and contains large undeveloped drilling inventory.

• Northern Oil and Gas said it will pay about C$113 million in stock, with the remainder in cash. It also agreed to pay an additional C$25 million, in cash or stock, in early 2028 if oil prices meet certain targets through 2027.

• The assets include more than 500 high-quality drilling locations with low breakeven costs, and are largely operated by Parallax under a long-term development agreement with multi-year drilling commitments, NOG added.

• The company said it has formed a wholly owned Canadian subsidiary, NOG Energy Canada Ltd, and expects to close the deal late in the second quarter of 2026.

• NOG said it expects the assets to produce about 4,000 boepd in 2027 and revised its 2026 production guidance to 143,000-148,000 boepd from its prior outlook of 139,000-143,000 boepd.

($1 = 1.3801 Canadian dollars)