Oil and gas exploration company Kodiak Oil & Gas Corp said it will buy producing properties and undeveloped leasehold in the Williston Basin, North Dakota for about $235 million in cash.
Kodiak, which already owns assets in the area, will buy 13,500 acres of property from a private oil and gas company, expanding its acreage position in the Williston Basin to nearly 110,000 net acres.
The company said it expects net oil and gas production of 3,000 barrels of oil equivalent per day (boe/d) from the deal.
Kodiak expects to fund the deal, which is expected to close in late October 2011, through available cash balances and through borrowings under credit facilities, the company said in a statement.
Shares of the Denver, Colarado-based Company closed at $5.76 on Tuesday on the New York Stock Exchange.
