Whiting Petroleum to use about $435 million of bank debt for acquisitions

By Sara Rosenberg

New York, Sept. 1 - Whiting Petroleum Corp. plans to use about $435 million of bank debt to finance the acquisition of interests in 17 fields in the Permian Basin of West Texas and Southeast New Mexico for a purchase price of $345 million, as well as three previously announced cash acquisitions, according to a company news release.

The debt-to-total-capitalization ratio is expected to be 64% immediately after the closing of all four cash acquisitions.

Using its net cash provided by operating activities, the company believes it would be able to reduce its bank debt by about 67% and return its debt-to-total-capitalization ratio to less than 40% within 24 months, the release said.

Whiting Petroleum is a Denver-based company involved in oil and natural gas exploitation, acquisition and production activities.

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