Kodiak assumes operatorship of 15 drilling units on the contiguous leasehold acquired.
The purchase price for the asset package was $245m, including $10m of post-closing adjustments to reflect the 1 August 2011 effective date of the acquisition.
The transaction includes a working stake in seven gross operated producing wells; four gross wells that are waiting on completion or drilling; and four permitted and built locations.
Two of the four wells waiting on completion are scheduled for completion work in November 2011.
Kodiak currently operates five drilling rigs and anticipates that the five rigs are sufficient to hold all of its acreage within the primary term.
The company expects to announce its 2012 capital expenditure program later in the fourth quarter of 2011.
In connection with the acquisition, Kodiak and its lending group, consisting of Wells Fargo Bank, BMO Harris Financing, KeyBank, Royal Bank of Canada, and Credit Suisse entered into an amended and restated credit agreement to expand the Company’s existing senior secured revolving line of credit facility.
