Kodiak Oil and Gas announced two separate purchases of mineral acreage in North Dakota prospective for the Bakken Shale. Kodiak Oil and Gas purchased 5,680 gross, or 4,531 net acres, in McKenzie County just west of the Nesson Anticline, a major geological formation in the area. The company said the acreage was near producing wells drilled by other operators.
Kodiak Oil and Gas also increased its working interest by 25% on acreage in the Grizzly Project area. This acreage is in the Mondak area of the Elm Coulee Field located in McKenzie County on the Montana and North Dakota borders.
The transaction moves Kodiak Oil and Gas’s working interest in the Grizzly Project to 87.5% of 3,907 gross acres.
Lynn Peterson, the CEO of Kodiak Oil and Gas, said, “These acquisitions are consistent with our Williston Basin growth initiative. We were fortunate to be presented with negotiated-deal opportunities that allowed us to obtain contiguous, high-working-interest properties, which we intend to operate. The high-quality leasehold carries with it reduced geologic risk as proven Bakken and Three Forks reserves and production surround the lands. Including the new acquisitions, we now control approximately 104,000 gross and 65,000 net acres in the Williston Basin of North Dakota and Montana.”
Kodiak Oil and Gas said that the acreage was purchased from two private parties, and the company used cash to fund the acquisition.