with record rid activity, investors have been increasingly interested in the non-operator model of Northern Oil and Gas (NYSE:NOG), although Global Hunter Securities sees them approaching full value in the short term.
Global said, "NOG was an early-mover in the oily North Dakota Bakken Shale securing over 130,000 net acres. With an enviable amount of dry powder on the books, we expect this land-savvy management team to continue making acreage acquisitions in core areas; however, the days of paying sub $1,000 per acre could be over. The company’s non-operator model is working due to record rig activity that should continue into 2011. Investors have taken notice, propelling shares to an all-time high. We believe the stock is near full value in the short-term and would look for a better entry point."
Global Hunter Securities started coverage on Northern Oil and Gas with a "Neutral" rating. Northern closed Friday at $27.21, down $0.48, or 1.73 percent. Global has a price target of $30 on them.
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