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Kodiak Oil & Gas Completes Williston Basin Acquisition

Kodiak Oil & Gas Corp. an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, has announced the closing of the previously announced acquisition of core Bakken and Three Forks producing properties and undeveloped leasehold in the Williston Basin from Liberty Resources (“Liberty”), a Denver-based private oil and gas company.

Included in the acquisition are approximately 42,000 net leasehold acres and net production of approximately 5,600 barrels of oil equivalent per day (average net production for June 2013) located in McKenzie and Williams Counties, N.D. The acquired leasehold includes 35 controlled drilling spacing units, based upon 1,280-acre units, and is 90% held by production. The southern Williams County lands, approximating 14,000 net acres, are adjacent to Kodiak’s core Polar area. An additional 25,000 net acres are located in McKenzie County to the west of the Company’s Koala and Smokey areas. Kodiak has also assumed Liberty’s contract for one drilling rig, which has 13 months remaining on its term.

The announced purchase price for the asset package was $660 million. Post-closing adjustments were $52 million, including $31 million in working capital items and $21 million of cash flow adjustments to reflect the acquisition’s March 1, 2013 effective date. The Company paid an additional $20 million for acquisition costs associated with increased working interests acquired by Liberty subsequent to the effective date.

Including today’s acquisition, Kodiak’s leasehold position in the Williston Basin is now approximately 196,000 net acres.

Expanded Credit Facility

The Company funded the acquisition through borrowings under its revolving credit facility. In connection with the acquisition and reflecting year-to-date completion activities, Kodiak and its lending group, led by Wells Fargo Bank, N.A., entered into an amendment to the Company’s amended and restated credit agreement to increase the Company’s borrowing base and aggregate commitments under its existing senior secured revolving line of credit facility to $1.1 billion. This compares to the prior-level borrowing base of $650 million. Upon closing of the acquisition, the Company’s borrowings under the credit facility were $976 million. The Company continues to evaluate all available financing alternatives to support its capital requirements.