Kodiak Oil & Gas has entered definitive purchase and sale agreements with a private oil and gas firm and its financial partners to acquire additional acreages in Williston Basin in North Dakota, US, for $590m.
The acreages have a net oil and gas production of 3,500 barrels of oil equivalent per day and production is expected to increase before the close of the transaction.
The acquisition also includes 19.7 million barrels of oil equivalent per day in proved reserves, 81% of which are crude oil and 28% are categorised as proved developed.
Kodiak Oil & Gas will pay $540m in cash and $50m in common shares for the acreages.
On completion of the transaction, the firm will acquire two blocks of contiguous acreage totalling 202km² in Williams and McKenzie counties.
