Kodiak Oil & Gas Corp. announced the pricing of an underwritten public offering of 12,000,000 shares of its common stock at a price of $2.20 per share. The offering is being made pursuant to an effective shelf registration statement that Kodiak filed with the Securities and Exchange Commission on July 14, 2008. The net proceeds of the offering, after deducting underwriting discounts and commissions and Kodiak’s estimated offering expenses, are expected to be approximately $24.9 million. The offering is expected to close on October 30, 2009 and is subject to customary closing conditions. In connection with the offering, Kodiak has granted the underwriters a 30-day option to purchase a maximum of 1,800,000 additional common shares to cover over-allotments, if any.
KeyBanc Capital Markets Inc. is acting as the sole book runner for the offering and Thomas Weisel Partners LLC is acting as the co-manager.
Kodiak intends to use the net proceeds of the offering for its working capital needs, to fund capital expenditures for drilling and development, principally in the Bakken play located on the Fort Berthold Indian Reservation in North Dakota, and to finance the potential acquisition of oil and natural gas properties.
This offering of common stock will be made only by means of a prospectus, copies of which may be obtained from KeyBanc Capital Markets, Attn: Prospectus Delivery Department, 800 Superior Avenue, 17th Floor, Cleveland, Ohio 44114, phone: 216.563.2018.