Kodiak has closed the previously declared acquisition of Williston Basin oil and gas producing properties and undeveloped leasehold on November 30, 2010.

Included in the transaction are 23,133 gross and 14,494 net acres and production of approximately 500 net barrels of oil equivalent per day (BOE/d). The acreage provides Kodiak with the opportunity to develop over 60 net Bakken / Three Forks drilling locations. Kodiak paid $110 million in cash and received closing adjustments of approximately $1,350,000 from the August 1, 2010 effective date to closing. Kodiak funded the transaction through cash balances and through borrowings under credit facilities including its expanded reserve-based, revolving line of credit and a second-lien term loan. No common shares or other securities of Kodiak were issued in consideration of the acquired properties.

In connection with the acquisition, Kodiak and its lender, Wells Fargo Bank, N.A., entered into an amendment to and expansion of the Company's existing credit facility. The amendment increases the Company's committed capacity under its $200 million senior secured revolving line of credit facility from $20 million to $50 million. In addition, the Company entered into a loan agreement with Wells Fargo Energy Capital, Inc. which provides for a $75 million senior secured second-lien term loan facility with an initial commitment of $40 million. The expansion of the credit facilities is based primarily on Kodiak's drilling results to date and in part on production and reserves added through the acquisition.

Tags: Kodiak Oil & Gas