Kodiak Oil & Gas Corp. announced Monday that it has agreed to buy Bakken-Three Forks lease and producing properties in the Williston Basin in the Rocky Mountains for about $85.5 million.

Denver-based Kodiak, an independent energy exploration and development company, said it will pay for the acquisition by issuing 2.5 million shares of its common stock and with cash. In addition, Kodiak will assume the selling company's contract for a new drilling rig.

Once the deal is completed, Kodiak would acquire about 25,000 net acres in McKenzie County, N.D., close to its Koala, Smokey and Grizzly project areas. The transaction will expand Kodiak's acreage in the Williston Basin, located in North Dakota and Montana, to around 95,000 net acres, the company said.

The selling company, a private oil and gas firm, wasn't identified.

Kodiak shares slipped 10 cents to close at $6.25.

Source: Bloomberg Businessweek

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