Kodiak Oil and Gas (KOG) is purchasing an additional 50,000 net acres of leasehold in the Williston Basin, increasing the company’s position prospective for the Bakken to 155,000 net acres. The company is paying $590 million for the acreage, with $540 million in cash and $50 million worth of the company’s common stock. Other details:
- 30,000 net acres adjacent to the Koala Project area.
- 20,000 net acres in northern Williams County, North Dakota near the Nesson Anticline.
- Current production from properties is approximately 3,500 barrels of oil equivalent (BOE) per day from 17 gross or 13.5 net operated and 10 gross or 1.3 net non operated wells.
- Four gross wells are currently waiting on completion and one well is being drilled.
- 19.7 million BOE of proved reserves - 81% oil and 28% in the developed category.
- Estimated ultimate recovery (EUR) per Bakken well of 750,000 to 900,000 BOE from the southern acreage.
- EUR per Bakken well from 350,000 to 450,000 BOE for the northern acreage.
Kodiak Oil and Gas will finance the transaction and related capital expenditures to develop the properties with a bridge loan and a common stock offering.