Kodiak Oil & Gas Corp. Agrees To Acquire An Additional 50,000 Net Leasehold Acres And 3,500 BOE/d Of Current Net Production In Heart Of Bakken Trend

DENVER, Nov. 14, 2011 /PRNewswire/ --

Transaction Highlights Include:

• Contiguous, Largely Undeveloped Leasehold Immediately Adjacent to Kodiak's Existing Core Operating Areas
• Consistent with Company's Bolt-on Strategy, Deal Would Provide Cash Flowing Assets Located Principally in Williams and McKenzie Counties, N.D.
• Upon Closing, Kodiak Would Control a Significant, Operated Williston Basin Position with ~155,000 Net Acres and ~800 Net Potential Locations for Future Development

Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announced that it has entered into definitive purchase and sale agreements with a private oil and gas company and its financial partners ("Sellers") to acquire additional producing properties and undeveloped leaseholds in the Williston Basin.  The purchase price for the asset package is $540 million in cash and $50 million in common shares of Kodiak priced at the five-day weighted average of the shares prior to the second business day prior to closing.  The purchase price is subject to adjustment including, but not limited to, adjustments for certain title and environmental defects, if any, as well as customary adjustments to reflect the operation of the properties following the effective date and prior to the closing.  Kodiak will also assume the Seller's contract for a drilling rig.  Terms and financing of the transaction are discussed below.  

Upon completion of the transaction, Kodiak would acquire two blocks of contiguous acreage totaling approximately 50,000 net leasehold acres in Williams and McKenzie Counties, N.D.  The southernmost lands, approximating 30,000 net acres, are adjacent to the Company's core Koala Project area and are contiguous to the lands acquired as part of the acquisition that recently closed in October 2011.  The remaining leasehold is located in northern Williams County near the Nesson Anticline in an area actively being developed.

Net oil and gas production included in the pending acquisition is currently approximately 3,500 barrels of oil equivalent per day (BOE/d).  Production is expected to increase before closing as there are four gross (3.1 net) wells waiting on completion.  Completion operations are currently underway on one of these wells.  

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