Denver-based Kodiak Oil & Gas Corp. announced Monday it is purchasing additional oil and gas assets in North Dakota for about $660 million in cash from Liberty Resources, a Denver-based private oil and gas company, Reuters reports.
The Denver Post says the deal will give Kodiak about 42,000 net acres of producing and undeveloped properties in North Dakota's Williston Basin -- which will bring the company's total holdings to about 196,000 net acres.
"Upon closing, we will initially operate with seven drilling rigs, with one of the rigs operating on the lands to be acquired," Kodiak's Chairman and CEO Lynn Peterson said in a news release. "Based on the additional capital expenditures for the acquired properties net of cash flow from those assets, we anticipate investment and projected cash flow to be more or less equal for the remaining periods of 2013."
The latest assessment by the U.S. Geological Survey in April showed there are roughly 7.4 billion barrels of oil that could be recovered in the Bakken Formation and Three Forks Formation, which spans parts of North Dakota, Montana and South Dakota.