May 26, 2010 (FinancialWire) — Kodiak Oil & Gas Corp. (AMEX: KOG) said that it has entered into a $200 million senior secured revolving line of credit facility with Wells Fargo Bank, N.A. (NYSE: WFC).

The initial borrowing base, reflecting the maximum amount that may be outstanding under the credit facility at any time, is $20 million and is subject to two scheduled and two optional redeterminations each year.  The maturity date of the credit agreement is May 24, 2014.

Loans made under this credit facility are secured by Kodiak’s proved reserves and a pledge of the capital stock of the company’s direct or indirect subsidiaries, the capital stock of the parent of the borrower and the accounts receivable, inventory, contract rights, and general intangibles of Kodiak and its subsidiaries.

Kodiak said that the senior credit facility's purpose is to provide funds to finance the development of oil and gas assets, to finance acquisitions of oil and gas properties, to provide working capital and for other general corporate purposes.  

Interest on borrowings under the credit facility accrues at variable interest rates at either, at Kodiak's election, a LIBOR rate or an alternate base rate, as defined in the credit agreement.

The LIBOR rate is calculated as LIBOR plus an applicable margin that varies from 2.25% to 3.25% depending on the utilization of the facility. The applicable margin for loans at the alternate base rate varies from 1.25% to 2.25%.

As part of the credit facility, Kodiak must pay a commitment fee of 0.50% paid per annum based on the unused portion of the credit facility.

Denver-based Kodiak Oil & Gas is an independent energy exploration and development company focused on exploring, developing and producing oil and natural gas in the Williston and Green River Basins in the U.S. Rocky Mountains

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