Another Motley Fool Article on KOG -- Bakken, North Dakota, USA

Link here.

When exploration and production companies sense that they are doing well, they go for the kill through expansion efforts. Kodiak, for its part, is planning on doing precisely that. The company plans to increase its acreage position in Williston Basin by 36%. Clearly, the company sees lots of opportunity ahead. 

The Denver-based company will acquire 25,000 net mineral acres in McKenzie County, North Dakota for $85.5 million in cash and stock. As a result, the company will also acquire working interest in two active wells, which are currently producing 200 net barrels of oil equivalent per day. However, that's just the small picture.

At the end of the first quarter this year, Kodiak had a two-rig drilling program in the Williston Basin. Today, the company is currently mobilizing its third rig, and has contracted for a fourth. Now, with the completion of this transaction, a fifth rig gets added to the company's arsenal.

When I first blogged this story, I did not do the math. A thirty-six percent increase in Bakken holdings is huge. Huge. And going from two rigs to five rigs is a pretty big jump, also. Now, they need to get a dedicated frack crew, unless they have one, and I missed it (or forgot).