Kodiak Oil & Gas Corp. Completes Latest Williston Basin Acquisition; Paid $588.4M with $50M in Common Shares

Kodiak Oil & Gas Corp.

today announces the closing of the previously announced acquisition of Williston Basin oil and gas producing properties and undeveloped leasehold. Included in the acquisition are approximately 50,000 net leasehold acres and net production of approximately 3,600 barrels of oil equivalent per day located primarily in McKenzie and Williams Counties, N.D. The acquisition includes a working interest in 19 gross (14.7 net) operated producing wells, 15 gross (1.9 net) non-operated wells and five gross (3.6 net) wells that have been drilled and are waiting on completion. The purchase price for the asset package includes cash consideration of $588.4 million and $50 million in common shares of Kodiak priced at the five-day weighted average price of the shares prior to the second business day prior to closing, or $9.89 per common share. The purchase price includes $48.4 million in post-closing adjustments to reflect the acquisition's September 1, 2011 effective date. Kodiak funded the cash balance due at closing through the release from escrow of the proceeds from the Company's November 2011 high yield debt offering. As previously disclosed, in connection with the closing of the November 2011 debt and equity offerings, Kodiak repaid all outstanding debt under its first lien credit agreement and, in conjunction with the closing of this acquisition, Kodiak repaid all of the outstanding debt under its second lien credit agreement. Kodiak's current borrowing capacity under its first lien credit agreement is $225 million.