Tuesday, April 19, 2011

Kodiak Oil & Gas (KOG) Negotiating for Fourth Rig

Kodiak Oil & Gas (NYSE:KOG) announced in an interim corporate update they're negotiating a contract for a fourth rig to be delivered in the fourth quarter of 2011.

The company has a 40 percent to 50 percent working interest in wells being drilled by a non-operated drilling rig as part of its Dunn County, North Dakota area of mutual interest with ExxonMobil (NYSE:XOM).

Records reveal the production rate at Bakken is 3,042 BOE/d.

Kodiak also noted its semi-annual re-determination of its borrowing base under its $200 million senior secured revolving line of credit facility has been completed.

Consequently, the borrowing base of Kodiak has been boosted from $50 million to $75 million. The company said, "The increase in our borrowing base is reflective of our continued success in the Williston Basin."

Kodiak was trading at $7.00, gaining $0.62, or 9.72 percent, as of 11:51 AM EDT.

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