KOG bought

[wilmawatts]

By whiting petroleum

[wilmawatts]

Wow, the acquired company (KOG) agreed to be bought at a price below market based on Fridays close.

But KOG is up a bit today, 4%

Certainly not the premium I would expect as a shareholder for their Bakken assets.

Glad I am not a shareholder of KOG

[dan_s]

KOG shareholders should be happy. IMO they are getting very close to Fair Value for the shares in a tax free exchange. They will have a lot more upside with WLL.

Something to consider is that WLL will quickly eliminate over half the KOG G&A expense shortly after the merger.

I am working on a proforma financial statement for WLL now.

[ghrcap]

Deal metrics estimated:
1.7 X their proved PV-10 as stated in their June presentation
$35.86 per proved BOE
$150,000 per flowing BOE

[dan_s]

Remember that P2 reserves in the Bakken are darn near P1. KOG's acreage has a lot of running room and a high percentage is de-risked and HBP.