Kodiak Announces Game-Changing Transactions
By Atticvs Research: After the close of business on November 14, Kodiak Oil & Gas (KOG) announced game-changing acquisition and financing deals:
- Acquisition of net 50,000 acres in Williston basin for $540 million cash plus $50 million in shares.
- Issuance of $550 million senior notes.
- Issuance of approximately 43 million new shares.
Together with these transactions Kodiak issued preliminary guidance for 2012, the main points being $585 million capex and full-year production outlook of 22,000-24,000 BOE/d.The acquisition ticks the usual boxes in that the land is mostly contiguous with Kodiak’s existing acreage thus allowing the company to achieve notable production and operating efficiencies. The deal, which costs $590 million, includes 19.7 million proved reserves and working interest in net 14.9 operating wells producing 3,500 BOE/d.Kodiak will use some of the proceeds from the senior notes and the shares to fully pay off the company’s second lien credit facility with Wells FargoComplete Story »
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