ABJ - September 28 - Kodiak Oil & Gas Corp., an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, has announced that it has entered into a definitive purchase and sale agreement with a private oil and gas company to acquire additional producing properties and undeveloped leasehold in the Williston Basin.

The purchase price for the asset package is an estimated $235 million, subject to customary post-closing adjustments to reflect the effective date of the acquisition. Kodiak has agreed to assume the seller's term-contract for a drilling rig, subject to the rig owner's consent. Kodiak expects to fund the transaction through available cash balances and through borrowings under credit facilities, which would include an expanded borrowing base revolving credit facility and an expanded second-lien term loan.

Upon completion of the transaction, Kodiak will acquire 13,500 net mineral acres located principally in Williams County, N.D., just north of the company's Koala Project area. Estimated net oil and gas production included in the acquisition is projected to be 3,000 barrels of oil equivalent per day, (BOE/d) at closing. The transaction will expand Kodiak's acreage position in the Williston Basin to nearly 110,000 net acres. Kodiak will assume operatorship of 15 drilling units on the contiguous leasehold to be acquired.