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 $110m in cash and received closing adjustments of approximately $1.35m from the 1 August 2010 effective date to closing.
In connection with the acquisition, Kodiak and its lender Wells Fargo Bank entered into an amendment to and expansion of the company’s existing credit facility.
In addition, the company entered into a loan agreement with Wells Fargo Energy Capital, which provides for a $75m senior secured second-lien term loan facility with an initial commitment of $40m.
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.
Kodiak is an oil and gas exploration and production company with assets in the Williston Basin of North Dakota and Montana.
