EXHIBIT
      10.7

    


    


    June
      25,
      2007

    


    


    Mr.
      Carter Stewart

    Gallatin
      Resources, LLC

    314
      East
      Thayer Avenue

    Bismarck,
      North Dakota 58501

    


    
      	RE:	
              Offer
                to Purchase 
                Plum
                  Hill Prospect

                Yates
                  County, New York

              

            


    

    
    

     

    Dear
      Mr.
      Stewart: 

    


    The
      purpose of this letter is to set forth the basic terms and conditions under
      which Northern Oil and Gas, Inc. (NOGS) has agreed to acquire, and Gallatin
      Resources, LLC (Gallatin) has agreed to sell, certain oil and gas leases as
      described in Exhibit “A” (“Purchased Leases”) attached hereto and made a part
      hereof. When accepted in the manner hereinafter provided for, this Letter
      Agreement shall serve to set forth in writing the terms and conditions of such
      purchase and sale, which supersedes all prior correspondence, understands or
      agreements whether made verbally or in writing. It is NOGS sole responsibility
      to perform all due diligence, and otherwise conduct any geologic, operational
      and/or feasibility studies.

    


    The
      basic
      terms are as follows:

    


    NOGS
      agrees to pay $10,000.00 upon full execution of this Letter Agreement. The
      effectiveness of this Agreement is subject to the ability of NOGS to obtain
      a
      third party “fairness opinion” with regards to the terms of this transaction.
      Should NOGS not be able to obtain such an opinion, either the seller or Northern
      may terminate the agreement and both parties agree that the $10,000.00 payment
      by NOGS to Gallatin shall be refunded in full within ten (10) days of the
      termination of the Agreement.

    


    NOGS
      agrees to pay $1,500,000.00 and 275,000 shares of restricted stock in NOGS
      for
      approximately 10,000.00 net acres and approximately 10,000.00 gross acres,
      as
      set forth on the attached Exhibit “A” (“Purchased Leases”).

    


    Gallatin
      shall convey all Purchased Leases unto NOGS utilizing a mutually acceptable
      form
      of assignment and shall deliver the Purchased Leases unto NOGS with an
      eighty-one (81%) percent NRI.

    


    Closing
      on this transaction shall take place no later than August 17, 2007. Closing
      may
      be by mail or in person as decided by NOGS and Gallatin. At such Closing, NOGS
      shall authorize the issuance of 275,000 shares of restricted stock and wire
      transfer $1,490,000.00 to Gallatin’s account and Gallatin shall deliver the
      appropriate assignment unto NOGSS. If NOGS does not wire transfer $1,490,000.00
      by 5:00 p.m. EDT on August 17, 2007, this Agreement shall become null and
      void.

    


    Gallatin
      shall provide documentation NOGS deems necessary to satisfy NOGS as to title
      of
      the Purchased Leases. Upon 30 days prior to closing, Gallatin shall provide
      NOGS
      with copies of all Purchased Leases, confirmation of payment for all bonus,
      delay rentals or other monies owing third parties for the Purchased Leases,
      and
      copies of all ownership reports or other title information which Selling Party
      has in its possession that relate to lands covered by the Purchased Leases.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOGS
      agrees to provide Gallatin with copies of all well information obtained by
      NOGS,
      it’s contractors or assigns, from any well drilled on the Purchased Leases or
      lands pooled, unitized or communitized therewith. Such well information may
      include, but not limited to, all applications or filings filed with the State
      of
      New York, daily drilling reports, logs, test results, core analysis, production
      tests and production reports.

    


    NOGS
      and
      Gallatin have agreed upon an Area of Mutual Interest, as shown in Exhibit “B”
(“AMI”). 

    


    If
      you
      agree with the terms and conditions set forth in this Letter Agreement, please
      so indicate by signing below in the space provided and returning one (1)
      executed copy of this letter to the undersigned via facsimile transmission
      to
      952-476-9801.

    


    Sincerely,

    


    


    


    Michael
      L. Reger, CEO

    Northern
      Oil and Gas, Inc.

    


    


    Agreed
      to
      and accepted this 25th day of June, 2007

     

    
      	Gallatin Resources,
              LLC	 	 	 
	 	 	 	 	 
	By:	/s/
              Carter
              Stewart 	 	 	 
	Title:	
              
President