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What: Shares of Bonanza Creek Energy Inc (NYSE:BCEI) jumped 16% today after announcing an acquisition.

So what: Bonanza is buying acreage in the Wattenberg Field from a private company for $175.5 million in cash and 1.1 million shares. The assets consist of approximately 34,600 net acres and net production of 700 Boe/day, 85% of which is oil.

Now what: The deal will be paid for by increasing the company's credit facility by $400 million to $1 billion. It will also double the exposure to the Wattenberg Field. The funding will allow for not only the acquisition but accelerating drilling as well, which should drive value long term.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.