Kodiak enters amendment, waiver to credit agreement with Wells Fargo

By Jennifer Chiou

New York, July 15 - Kodiak Oil & Gas Corp. wholly owned subsidiary Kodiak Oil & Gas (USA) Inc. entered into on July 12 an amendment and limited waiver to its credit agreement with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment brings the aggregate commitments on the revolver to $1.1 billion from $550 million and also increases the aggregate commitments to the borrowing base to $1.1 billion from $650 million.

The filing noted that the amendment and waiver further facilitate the company's acquisition agreement and permit a corporate reorganization of the company and its direct and indirect subsidiaries.

Under the acquisition agreement entered into on June 2, Kodiak USA entered into a definitive purchase and sale agreement with Liberty Resources LLC, under which Kodiak USA will acquire certain oil and gas leaseholds located in North Dakota.

The effective date for the acquisition is March 1.

The 8-K stated that Kodiak USA and Liberty entered into an amendment to the acquisition agreement to provide for the transfer of the oil and gas assets directly to Kodiak Williston, LLC, a newly formed wholly owned subsidiary of Kodiak USA, add certain additional oil and gas leaseholds and related rights, permits and contracts, and increase the purchase price by $20 million.

The companies closed the acquisition on July 12 for an aggregate consideration of $732 million in cash.

Kodiak is a Denver-based independent oil and gas exploration and production company.

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