Kodiak Oil & Gas Corp. to Acquire Williston Basin Producing Properties and Undeveloped Leasehold for $85.5M

Kodiak Oil & Gas Corp.

today announced that it has entered into a definitive purchase and sale agreement with a private oil and gas company to acquire Bakken/Three Forks leasehold and producing properties in the Williston Basin. The purchase price for the leasehold interests and associated assets is approximately $85.5 million, which will be paid through the issuance of 2.5 million common shares of Kodiak and cash. Kodiak will also assume the Seller's contract for a new build drilling rig and will reimburse the Seller for Seller's $2.5 million cash deposit on the rig. Kodiak expects to fund the cash portion of the of the purchase price with available cash balances and borrowings under its credit facilities. Upon completion of the transaction, Kodiak would acquire approximately 25,000 net mineral acres in McKenzie County, N.D., adjacent to and proximate to the Company's core Koala, Smokey and Grizzly Project areas. The privately negotiated transaction will expand Kodiak's acreage position in the Williston Basin to approximately 95,000 net acres.