Whiting Petroleum Acquires Kodiak Oil & Gas - $3.8 Billion

Whiting Bakken Acreage Map
Whiting Bakken Acreage Map

Whiting Petroleum announced on July 13, 2014, that it would acquire Kodiak Oil & Gas, in an all stock transaction, for $3.8 billion. The deal makes the combined company the largest Bakken/Three Forks producer, unseating Harold Hamm's Continental Resources from the top spot.

Next to the Eagle Ford Shale in South Texas, the Bakken Shale is the most prolific shale play in the world, with daily oil production exceeding 1-million b/d. With Whiting's acquisition of Kodiak, the company is positioning itself to be an even more formidable force in the Bakken.

In the first-quarter of 2014, Whiting and Kodiak had combined production of 107,000 boe/d, and officials indicate total 2014 production will be 152,000 boe/d. The combined company has 855,000 net acres and an inventory of 3,460 net drilling locations.

The addition of Kodiak’s complementary acreage position (approx. 173,000 net acres) and substantial inventory of high return drilling locations will provide the opportunity to drive significant value growth for both Whiting and Kodiak shareholders through an acceleration in drilling and increase in operational efficiencies,” said Whiting CEO James Voulkner.
Kodiak Bakken Acreage Map
Kodiak Bakken Acreage Map

Whiting officials said the deal is valued at $6 billion when Kodiak's net debt of $2.2 billion is absorbed.

Kodiak shareholders will receive 0.177 share of Whiting stock in exchange for each of Kodiak common stock they hold, representing a value of $13.90 per share based on the closing price of Whiting shares on July 11, 2014.

The transaction is expected to close in the fourth quarter of 2014.

Read more at whiting.com

Vermilion Energy Buys Bakken Assets in Saskatchewan - $345 Million

Bakken Shale Map
Bakken Shale Map

Vermilion Energy purchased $345 million in Saskatchewan acreage and other assets in mid-March 2014 from an undisclosed seller. With the acquisition, Vermilion establishes a long sought after core area in the Williston Basin. The assets include some Bakken and Three Forks properties.

In a company statement, Vermilion officials stated, “we have been evaluating producing entry opportunities into this prolific area for an extended period of time, but had not previously been able to structure a transaction that met the stringent requirements of our dividend growth model.

Vermilion Acquisition Details

Assets include approximately 57,000 net acres of land (approximately 80% undeveloped) covering the Midale, Frobisher, Bakken and Three Forks/Torquay formations. Production from the assets is projected to be approximately 3,750 boe/d (97% crude oil) during 2014.  More than 90% of the current production base will be operated by Vermilion.

Vermilion Drilling and Development from Acquired Assets

The majority of production and development drilling opportunities from the acquisition will be from the Midale formation, with additional opportunities in the Frobisher, Bakken and Three Forks/Torquay formations. The company has identified 175 (152 net) potential drilling locations collectively targeting these formations. Total proved and proved plus probable reserves attributed to the Assets at the end of February 2014 were 10.3 mmboe (81% crude oil and natural gas liquids) and 16.5 mmboe (81% crude oil and natural gas liquids), respectively.

Read more at vermilionenergy.com