Whiting to acquire Kodiak in $6 billion deal

Whiting Petroleum Corp. has agreed to acquire Kodiak Oil & Gas Corp., both of Denver, in an all-stock transaction valued at $6 billion, creating the largest Bakken-Three Forks producer with more than 107,000 boe/d of first-quarter production, 855,000 combined net acres, and 3,460 net future drilling locations.

Whiting Petroleum Corp. has agreed to acquire Kodiak Oil & Gas Corp., both of Denver, in an all-stock transaction valued at $6 billion, creating the largest Bakken-Three Forks producer with more than 107,000 boe/d of first-quarter production, 855,000 combined net acres, and 3,460 net future drilling locations.

Whiting says the combined company’s oil-weighted platform will drive production and operational synergies through complementary acreage positions, the application of technological expertise, and greater access to capital to accelerate drilling.

The combined entity is expected to have an initial enterprise value of $17.8 billion, total production for this year of 152,000 boe/d, and proved reserves of 606 million boe, 80% of which is oil.

James Volker, Whiting president and chief executive officer, said the combined company “will also participate in Whiting’s 175,000 gross (123,000 net) acre, oil-rich Redtail-Niobrara prospect in the northeast DJ basin, where production is rapidly growing.”

Whiting’s largest current projects are in the Bakken and Three Forks and Niobrara, and its enhanced oil recovery field in Texas.

Whiting in August 2013 purchased acreage primarily targeting the Middle Bakken and Three Forks zones, including 17,282 net (39,310 gross) acres in and around the company’s properties in the Missouri Breaks and Hidden Bench prospects in its western Williston area (OGJ Online, Aug. 29, 2013).

The boards of both companies have unanimously approved the transaction, which is expected to close in the fourth quarter.

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