DENVER, Jan. 8 /CNW/ -- Kodiak Oil & Gas Corp. (NYSE Alternext US: KOG),
an oil and gas exploration and production company with assets in the Green
River Basin of southwest Wyoming and Colorado and the Williston Basin of North
Dakota and Montana, today provided an operations update.
Williston Basin Operations Update -- Dunn County, North Dakota
Kodiak's exploration efforts target oil and gas production from the
middle member between the upper and lower Bakken shales, which is the source
rock for existing hydrocarbons. The Three Forks/Sanish Formation, a
productive interval lying directly below the lower Bakken shale, is also
expected to be a future exploration target. Commercial production from the
Three Forks/Sanish Formation is being reported by operators in the immediate
The Moccasin Creek (MC) #16-34-2H well (Kodiak operates with 60% working
interest [WI] and 49% net revenue interest [NRI]) recently reached total
depth. The well, located in the southwestern portion of Kodiak's leasehold,
was drilled to an approximate total vertical depth (TVD) of 10,350 feet and a
total measured depth (TMD) of 15,525 feet. During drilling operations, the
wellbore encountered oil and gas shows in the lateral. A liner was run to
total depth and completion work is tentatively scheduled after drilling of the
MC #16-34H well is finished. The well successfully reached TMD in 38 days,
which is within the Company's initial estimate of 40 days to total depth.
The drilling rig has been skid approximately 50 feet where drilling
recently commenced on the MC #16-34H well (Kodiak operates with 60% WI and 49%
NRI). The MC #16-34H is projected to be drilled to a TVD of 10,350 feet and
proposed TMD of 14,800 feet.
Six miles east of the Moccasin Creek wells, Kodiak has completed
construction of a drilling pad for the Charging Eagle (CE) #1-22-15H and the
CE #1-22-23H wells. Approximately 10 miles north of the Moccasin Creek
locations, a second drill pad is being constructed for the Two Shield Butte
(TSB) #16-8H and the TSB #16-8-16H wells. Kodiak operates both locations and
will utilize the skid package on its rig to move between wells, minimizing
mobilization time and surface disturbance. Upon completion of the MC #16-34H
well, the drilling rig will be moved to one of these drilling pads.
As of January 1, 2009, Kodiak had approximately 56,000 gross and 36,000
net acres under lease on the Fort Berthoud Indian Reservation (FBIR). Kodiak
operates all of its leasehold on the FBIR, with the exception of approximately
9,000 net acres that are in a participating area previously established with
Vermillion Basin Operations Update -- Sweetwater County, Wyoming
Drilling activities to evaluate the productive potential of the Baxter
shale continue in the Vermillion Basin. Devon Energy operates the wells which
are being drilled pursuant to an agreement entered into with Devon during the
first quarter of 2008. Subsequent to Kodiak's last operations update on
November 18, 2008, the operator drilled one well horizontally in the Horseshoe
Basin (HB) Unit. The HB13-36-13-102 well (50% WI, non-operated) was drilled
to an approximate TVD of 11,150 feet and a TMD of 14,330 feet. A production
liner was run into the lateral portion of the well. Completion efforts are
tentatively planned in 2009 after weather conditions improve and lease
stipulations expire. On the northern end of Kodiak's leasehold in the Coyote
Flats (CF) Unit, the CF #14-36-14-100H (50% WI, non-operated) well is
currently drilling horizontally at an approximate TVD of 11,750 feet. It is
anticipated that completion efforts on this well will commence following the
drilling operations in early 2009.
Kodiak's President and CEO Lynn Peterson said: "We are pleased to have
reached TD on our first well testing the middle Bakken formation in Dunn
County, N.D. As this was the first well with the new-built rig, we
experienced minor start-up delays, as anticipated. We also experienced delays
typical to new crews and particularly harsh winter-weather field conditions.
We fully expect to improve drilling efficiencies on our current MC #16-34H
well. The oil shows encountered during drilling the MC #16-34-2H are
encouraging, however economic quantities of hydrocarbons can only be
determined after hydraulic fracture stimulation operations and the ultimate
completion of the well."
About Kodiak Oil & Gas Corp.
Denver-based Kodiak Oil & Gas Corp. 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. For further information, please visit www.kodiakog.com. The
Company's common shares are listed for trading on the NYSE Alternext US
Exchange under the symbol "KOG."
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Forward looking statements are
statements that are not historical facts and are generally, but not always,
identified by the words "expects," "plans," "anticipates," "believes,"
"intends," "estimates," "projects," "potential" and similar expressions, or
that events or conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements regarding the
Company's exploration, drilling and development programs, the Company's
expectations regarding the timing and success of such programs and the timing
and availability of financing to satisfy the capital requirements, and the
Company's expectations regarding the future production of its oil & gas
properties. Factors that could cause or contribute to such differences
include, but are not limited to, fluctuations in the prices of oil and gas,
uncertainties inherent in estimating quantities of oil and gas reserves and
projecting future rates of production and timing of development activities,
competition, operating risks, acquisition risks, uncertainties regarding the
Company's liquidity and capital requirements and the availability and cost of
capital necessary to fund the Company's current plan of operations, the
effects of governmental regulation, adverse changes in the market for the
Company's oil and gas production, dependence upon third-party vendors, and
other risks detailed in the Company's periodic report filings with the
Securities and Exchange Commission.
For further information:
For further information: Mr. Lynn A. Peterson, CEO and President of
Kodiak Oil & Gas Corp., +1-303-592-8075; or Mr. David P. Charles of Sierra
Partners LLC, +1-303-757-2510, ext. 11, for Kodiak Oil & Gas Corp. Web Site: