Kodiak Oil & Gas Corp. issued a financial and operational update related to the company’s oil and gas activity in the Williston Basin. The company is working on several different formations including the Bakken and Three Fork zones on its leasehold in Montana and North Dakota.
Kodiak Oil & Gas is offering twenty million shares of the company’s common stock in a secondary offering. The deal includes provisions for a three million share allotment option for a thirty day period if there is sufficient investor demand. The company will use the proceeds for various purposes including funding capital expenditures and repaying debt.
Kodiak Oil & Gas has also secured an agreement from a bank lending group to increase the capacity of the company’s first lien senior secured revolver from $75 million to $110 million. The company also borrowed an additional $15 million under the second lien senior secured term loan and now owes $55 million on that loan.
Kodiak Oil & Gas said that the company’s oil and gas volume for the second quarter of 2011 should average 2,600 barrels of oil equivalent per day. This volume level would represent a 39% sequential increase from the first quarter of 2011.
For more information on the company, go to www.kodiakog.com