Kodiak O&G Prices Private Offering of Senior Notes

Kodiak O&G announced that it upsized and priced a private offering of $650 million in aggregate principal amount of senior notes due 2019 in a private placement to eligible investors. The size of the offering was increased from the previously announced $550 million to $650 million. The notes bear interest at 8.125% per annum and are being issued at a price of 100% of their face amount. The Company expects to close the notes offering on November 23, 2011, subject to the satisfaction of customary closing conditions.

Kodiak intends to use the net proceeds of this offering, together with other sources of liquidity (i) to finance the previously announced proposed acquisition of interests in approximately 50,000 net acres of oil and gas properties and related assets in the Williston Basin, North Dakota , (ii) to repay all of the outstanding debt under Kodiak's first lien credit agreement, to repay all of the outstanding debt under its second lien credit agreement and to pay related fees, premiums and expenses, (iii) to fund capital expenditures for drilling, development and infrastructure, principally in the Bakken play located in North Dakota and (iv) for general corporate purposes, including financing the potential acquisition of oil and gas properties in certain core areas, such as the Bakken play.


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