Kodiak Oil & Gas Corp's purchase of 42,000 acres of leases in North Dakota's Bakken shale fields last June has helped boost the company's production, Chief Executive Lynn Peterson said in an interview on Wednesday.
The increase reflects the company's aggressive plan to spend about $950 million this year to drill 100 new wells. Kodiak is the eighth-largest Bakken operator and its oil production has been steadily increasing, despite its relatively small size compared with Bakken peers.
The company's stock has followed suit, rising 25 percent since January, a boon to hedge funds Paulson & Co and Citadel Investment Group LLC, Kodiak's two largest shareholders.Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. There are several story lines in this short Rigzone blurb, but I won't discuss them here except to say the last paragraph in the "indent" is concerning.
The article continues:
Gross operated production, which includes production from wells Kodiak does not operate but has a stake in, has risen to "just shy" of 50,000 barrels of oil equivalent per day (boe/d) from 45,000 boe/d in August, Peterson said on Wednesday.
"We're clicking on all cylinders," he said.
The company bought 42,000 acres of Bakken acreage from privately held Liberty Resources in June.
Peterson said Kodiak has "no need" for more land deals, but is keeping an eye on potential buyouts.The referenced deal is linked at the sidebar at the right.
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