DENVER, June 4 (UPI) -- Kodiak Oil & Gas Corp. announced plans to spend $660 million in cash to acquire 42,000 acres in oil developments in North Dakota.
Kodiak, a company with headquarters in Denver, announced Monday it reached a purchase and sale agreement with Liberty Resources to purchase acreage in the Bakken and Three Forks oil fields in the Williston Basin of North Dakota.
Kodiak said the acreage under consideration is producing about 5,700 barrels of oil equivalent per day.
North Dakota oil production is helping with overall gains seen from the U.S. energy sector. The North Dakota Industrial Commission Oil and Gas Division reported the state set all-time records with more than 782,000 barrels of oil per day, 846,000 cubic feet of natural gas per day and 8,634 producing wells for March, the last month for which information is available.
Kodiak said production from the North Dakota lease area should increase before the sale closes, which is expected by July.