DENVER, Jan. 10, 2012 /CNW/ - Kodiak Oil & Gas Corp. (NYSE: KOG), an oil
and gas exploration and production company with primary assets in the
Williston Basin of North Dakota, 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.
Including today's acquisition, Kodiak's acreage position in the
Williston Basin now approximates 155,000 net acres.
The shares of common stock of Kodiak issued under the acquisition
agreements have not been registered under the U.S. Securities Act of
1933, as amended, or any state securities laws and may not be offered
or sold in the United States absent registration thereunder or an
applicable exemption from such registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy any securities.
2011 Proved Reserves and Production Volumes
The Company also today announced that it expects to announce its 2011
estimated proved reserves quantities, its 2011 average daily production
volumes and its December 31, 2011 exit rate production volumes later in
About Kodiak Oil & Gas Corp.
Denver-based Kodiak Oil & Gas Corp. is an independent energy exploration
and development company focused on exploring for, developing and
producing oil and natural gas in the Williston and Green River Basins
in the U.S. Rocky Mountains. For further information, please visit www.kodiakog.com. The Company's common shares are listed for trading on the New York
Stock Exchange under the symbol: "KOG."
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," projects," "potential" and similar expressions, or that
events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements
regarding the expectations and anticipated benefits of the acquisition
transaction, the expansion of the Company's presence in the Williston
Basin and the Company's operational, exploration and development
plans. Factors that could cause or contribute to such differences
include, but are not limited to, fluctuations in the prices of oil and
gas, uncertainties inherent in estimating quantities of oil and gas
reserves and projecting future rates of production and timing of
development activities, competition, operating risks, acquisition
risks, liquidity and capital requirements, the effects of governmental
regulation, adverse changes in the market for the Company's oil and gas
production, dependence upon third-party vendors, and other risks
detailed in the Company's periodic report filings with the Securities
and Exchange Commission.
For further information, please contact:
Mr. Lynn A. Peterson, CEO and President, Kodiak Oil & Gas Corp.
Mr. David P. Charles, Sierra Partners LLC +1-303-757-2510 x11
SOURCE Kodiak Oil & Gas Corp.
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