Denver-based Kodiak Oil & Gas Corp. has completed its acquisition of 42,000 net acres and associated production in North Dakota’s Williston Basin for $660 million in cash from Liberty Resources LLC. The deal included core Bakken and Three Forks producing properties in addition to undeveloped leaseholds.

The acquisition includes net oil and gas production of approximately 5,600 boe/d located in McKenzie and Williams Counties, ND. It includes 35 controlled drilling spacing units, based upon 1,280-acre units, and is 90% held by production. The southern Williams County lands, approximating 14,000 net acres, are adjacent to Kodiak’s core Polar area. An additional 25,000 net acres are located in McKenzie County to the west of the company’s Koala and Smokey areas. Kodiak has also assumed Liberty’s contract for one drilling rig, which has 13 months remaining on its term.

The announced purchase price for the asset package was $660 million. Post-closing adjustments were $52 million, including $31 million in working capital items and $21 million of cash flow adjustments to reflect the acquisition’s March 1, 2013 effective date. Kodiak added that it paid an additional $20 million for acquisition costs associated with increased working interests acquired by Liberty subsequent to the effective date.

When the deal was announced in early June, Kodiak CEO Lynn Peterson said the acquisition was inline with the company’s stated strategy of identifying and acquiring reduced-risk, contiguous leasehold in its immediate core operating areas. Peterson added that the company will initially operate with seven drilling rigs, one of which being from the contract Kodiak purchased from Liberty.

Kodiak began building its position in the Bakken through three separate deals in 2011. It acquired 25,000 net acres in McKenzie County for $85.5 million in May, followed by 13,500 net acres in Williams County for $235 million in October, and 50,000 net acres for $590 million in November (see Shale Daily, Nov. 23, 2011; Oct. 3, 2011; May 24, 2011).

Including the new acreage, Kodiak’s leasehold position in the Williston Basin is now about 196,000 net acres.