2010-05-06-2010-04-06-2010-04-05

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Acquired 4,531 acres, addtl 25% WI, in 2 projects in Williston Basin in McKenzie Co., ND.

Denver-based Kodiak Oil & Gas Corp. (NYSE Amex: KOG) has acquired acreage in the Williston Basin prospective for the Bakken shale from undisclosed private sellers for an undisclosed price in two transactions.

In the first transaction, Kodiak acquired 5,680 gross acres (4,531 net) in McKenzie County, North Dakota, on the border of Williams County. The position is west of the Nesson anticline and offsets existing Bakken and Three Forks producing wells successfully drilled and completed by other operators such as Newfield Exploration Co. (NYSE: NFX), Continental Resources Inc. (NYSE: CLR) and Brigham Exploration Co. (Nasdaq: BEXP).

The acquisition, which closed on April 2, was funded through the company's available cash balances.

In the second transaction, Kodiak acquired an additional 25% working interest, increasing its total interest to 87.5% working interest, in 3,907 gross acres (3,419 net) in its Grizzly Project area in Mondak Field on the southeastern end of Elm Coulee Field on the Montana/North Dakota boundary in McKenzie County. The assets include two gross producing well bores (1.75 net), surface facilities and pipeline infrastructure.

This acquisition closed April 5 and was also funded with cash on hand.

Kodiak's president and CEO Lynn Peterson says, "These acquisitions are consistent with our Williston Basin growth initiative. We were fortunate to be presented with negotiated-deal opportunities that allowed us to obtain contiguous, high-working-interest properties which we intend to operate. The high-quality leasehold carries with it reduced geologic risk as proven Bakken and Three Forks reserves and production surround the lands."

Including these interests, Kodiak now holds approximately 104,000 gross (65,000 net) acres in the Williston Basin of North Dakota and Montana.

"We will most likely seek a partner to participate in the drilling activities in these two areas so that we may commence development drilling as quickly as possible," Peterson adds. "Part of our articulated strategy contemplates maintaining a majority working interest in our exploration and development portfolio, and to operate our projects whenever possible."