UPDATE 1-Kodiak to buy Williston Basin properties for $590 mln

Mon Nov 14, 2011 5:39pm EST

* To buy 50,000 acres in Williston Basin in North Dakota

* Says properties produce 3,500 boe/d

Nov 14 (Reuters) - Oil and gas producer Kodiak Oil & Gas Corp said it will buy properties in the Williston Basin in North Dakota for $590 million in cash and stock to expand its presence in the region.

Kodiak will acquire 50,000 net leasehold acres in Williston basin. These properties produce about 3,500 barrels of oil equivalent per day (BOE/d).

The deal, which is expected to close in early January next year, will expand Kodiak's total acreage position in the Williston Basin to about 155,000 net acres.

Kodiak also forecast production of 22,000-24,000 BOE/d for all of 2012 and expects to exit next year with an output of about 30,000 BOE/d.

The Denver, Colarado-based company's shares were down 6 percent at $7.25 in after-market trade. They closed at $7.69 on Monday on the New York Stock Exchange.

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