UPDATE 1-Kodiak Oil production rising after latest Bakken land deal

Wed Sep 11, 2013 1:31pm EDT
 
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NEW YORK, Sept 11 (Reuters) - 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.

Peterson, CEO since 2001, declined to comment when asked if Kodiak is seeking a buyer.

"We're here to provide value to shareholders," he said, adding he believes Kodiak shares are in "great shape."

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.   Continued...