Kodiak Oil & Gas (KOG)

[dan_s]

An updated forecast model for KOG has been posted under the Sweet 16 Tab. The updated forecast includes the impact of the acquisition below. My Fair Value Estimate for KOG is now $13.25/share. - Dan

DENVER, July 12, 2013 /PRNewswire/ -- Kodiak Oil & Gas Corp. (KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announces the closing of the previously announced acquisition of core Bakken and Three Forks producing properties and undeveloped leasehold in the Williston Basin from Liberty Resources ("Liberty"), a Denver-based private oil and gas company.

Included in the acquisition are approximately 42,000 net leasehold acres and net production of approximately 5,600 barrels of oil equivalent per day (average net production for June 2013) located in McKenzie and Williams Counties, N.D. The acquired leasehold includes 35 controlled drilling spacing units, based upon 1,280-acre units, and is 90% held by production. The southern Williams County lands, approximating 14,000 net acres, are adjacent to Kodiak's core Polar area. An additional 25,000 net acres are located in McKenzie County to the west of the Company's Koala and Smokey areas. Kodiak has also assumed Liberty's contract for one drilling rig, which has 13 months remaining on its term.

The announced purchase price for the asset package was $660 million. Post-closing adjustments were $52 million, including $31 million in working capital items and $21 million of cash flow adjustments to reflect the acquisition's March 1, 2013 effective date. The Company paid an additional $20 million for acquisition costs associated with increased working interests acquired by Liberty subsequent to the effective date.

Including today's acquisition, Kodiak's leasehold position in the Williston Basin is now approximately 196,000 net acres.

[prince_jake_33]

Tuesday, July 23, 7:59 AM ET
In a Q2 operations update, Kodiak Oil & Gas (KOG) reports average daily sales volumes of 23.2K boe/day, an 83% increase Y/Y and 8% Q/Q. Completed 25 gross operated wells in Q2; expects to complete 30 operate wells in Q3. Estimates average daily production of 30K-34K boe/day for FY 2013. Raises FY 2013 estimated capex to $950M-$1B. KOG +0.2% premarket. This Market Current was sent to 8,234 people who get email alerts on KOG.