DENVER, Aug. 11 /PRNewswire-FirstCall/ -- Kodiak Oil & Gas
Corp. (Amex: KOG; TSX Venture: KOG), an oil and gas exploration and
production company with assets in the Green River and Williston
Basins, today reported financial and operating results for the
first half of 2006. Financial tables for the first half and second
quarter 2006 are included at the end of this news release.
First-half 2006 The Company reported a net loss for the six months
ended June 30, 2006 of $1,014,000 or $0.02 per share compared with
a net loss of $816,000 or $0.02 per share for the same period in
2005. Included in the 2006 net loss was a charge against income of
$1,121,000 for stock-based compensation for options issued to
directors and employees, while there was no such expense in 2005.
All per-share amounts are presented on a fully diluted basis. Net
income before depreciation, depletion and amortization, gain on
foreign currency exchange, and stock-based compensation charges was
$619,000 for the six-month period ended June 30, 2006 as compared
to loss of $630,000 the same period ending June 30, 2005. Oil and
gas sales for the six-month period were $1,771,000 versus $14,000
in the same period in 2006. Total revenues were $2,138,000 versus
$45,000 in the same period a year ago. The rise in total revenues
is attributed to greater oil and gas production volumes and higher
realized commodity prices received. Gas production volumes were
94,139 per thousand cubic feet (Mcf) for the six-month period ended
June 30, 2006, compared to 5,877 Mcf for the prior period in 2005.
Oil production volumes were 23,982 barrels for the six-month period
ended June 30, 2006, compared to no oil sales during the same
period in 2005. For the first half of 2006 Kodiak produced 39,672
barrels of oil equivalent using a conversion rate of 6 Mcf gas to
each barrel of oil. Gas price realizations increased 21% to $6.55
per Mcf for the six-month period ended June 30, 2006 compared to
$5.43 per Mcf the same period in 2005. Oil price realizations were
$56.97 per barrel for the period ended June 30, 2006. Kodiak's
production is currently unhedged. As of June 30, 2006, Kodiak had
working capital of $24,983,000 with no long-term debt. During the
six-month period ended June 30, 2006, the Company invested
$16,208,000 for exploration and development of its leasehold,
including $6,900,000 for the acquisition of mineral leaseholds in
the Company's Vermillion Basin projects in southwest Wyoming.
Kodiak anticipates capital of expenditures of approximately $16
million over the remainder of 2006 of which $10 million will be
invested in Wyoming, primarily in the Vermillion Basin, and $6
million in the Williston Basin. During the first half of 2006,
Kodiak conducted initial completion operations on three gross wells
(1.6 net). At June 30, 2006, Kodiak operated eight gross wells with
four additional wells awaiting completion activities. Management
Comments Commenting on the first-half results, Lynn Peterson,
Kodiak's President and CEO said: "Because we are beginning to ramp
up activity and corresponding production growth, we have presented
results in the six-month format. Comparisons to the year-ago period
are skewed by the capital we have raised and the investment in
developing our properties. We will present quarterly comparisons as
they become a more meaningful way to assess our performance and
expected growth. For the remainder of 2006, we expect to spud our
first Baxter Shale test, the North Trail State #4-36 in the
Vermillion Basin in Wyoming. We also just put our first Bakken well
in North Dakota on production during the last week of July and we
have set intermediate casing to 11,200 feet on our second well. Our
third quarter results will reflect the oil production from this
play." About Kodiak Oil & Gas Corp. Kodiak Oil & Gas,
headquartered in Denver, 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
http://www.kodiakog.com/. The common shares of the Company are
listed for trading on the American Stock Exchange and the TSX
Venture Exchange under the symbol "KOG." Forward-Looking Statements
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. Information inferred from the
interpretation of drilling results may also be deemed to be forward
looking statements, as it constitutes a prediction of what might be
found to be present when and if a well is actually developed.
Forward-looking statements in this document include statements
regarding the Company's exploration, drilling and development
plans, the Company's expectations regarding the timing and success
of such programs, and the Company's expectations regarding
production from its Williston property. 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, liquidity and
capital requirements, 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. The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this
release. For further information, please contact: Mr. Lynn A.
Peterson, President, Kodiak Oil & Gas Corp., +1-303-592-8075
Mr. David Charles, EnerCom, Inc. +1-303-296-8834 Ms. Heather
Colpitts, Associate Account Manager, CHF Investor Relations,
+1-416-868-1079 x.223 [Financial and Operational Tables Accompany
this News Release] The notes accompanying the financial statements
are an integral part of the consolidated financial statements and
can be found in Kodiak's filing on Form 10-Q dated August 11, 2006.
KODIAK OIL & GAS CORP. BALANCE SHEET (UNAUDITED) June 30,
December 31, ASSETS 2006 2005 Current assets: Cash and cash
equivalents $27,494,962 $7,285,548 Accounts receivable Trade
727,670 447,981 Accrued Sales 338,059 226,406 Prepaid expenses and
other 179,276 30,631 Total Current Assets 28,739,967 7,990,566
Property and equipment (full cost method), at cost: Proved oil and
gas properties 19,222,253 11,277,307 Unproved oil and gas
properties 14,571,338 6,307,903 Less-accumulated depletion,
depreciation and amortization (969,105) (121,941) 32,824,486
17,463,269 Other property and equipment, net of accumulated
depreciation of $79,479 in 2006 and $47,525 in 2005 166,388 183,481
Restricted Investment 228,000 153,000 Total Assets $61,958,841
$25,790,316 LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities: Accounts payable and accrued liabilities $3,757,340
$4,411,572 Noncurrent liabilities: Asset retirement obligation
137,760 69,073 Total Liabilities 3,895,100 4,480,645 Commitments
and Contingencies Stockholders' equity: Common stock, $0.01 par
value: authorized - 100,000,000 Issued: 74,886,426 shares in 2006
and 54,547,158 in 2005 748,864 545,472 Additional paid in capital
64,158,128 26,593,826 Accumulated deficit (6,843,251) (5,829,627)
Total Stockholders' Equity 58,063,741 21,309,671 Total Liabilities
and Stockholders' Equity $61,958,841 $25,790,316 KODIAK OIL &
GAS CORP. STATEMENT OF OPERATIONS (UNAUDITED) Three months ended
June 30, Six months ended June 30, 2006 2005 2006 2005 Revenues:
Gas production $172,914 $13,545 $404,480 $13,545 Oil production
689,185 -- 1,366,198 -- Interest 263,167 22,677 366,839 31,325
Total revenue 1,125,266 36,222 2,137,517 44,870 Cost and expenses:
Oil and gas production 236,746 63,633 349,660 74,347 Depletion,
depreciation, amortization and abandonment liability accretion
491,674 7,216 879,190 13,732 General and administrative 1,825,632
323,594 2,290,435 601,472 (Gain) /loss on currency exchange
(420,676) 130,655 (368,143) 171,278 Total costs and expenses
2,133,376 525,098 3,151,141 860,829 Net loss for the period
$(1,008,110) $(488,876) $(1,013,624) $(815,959) Basic & diluted
weighted-average common shares outstanding 74,398,514 44,810,540
67,045,923 44,810,540 Basic & diluted net loss per common share
$(0.01) $(0.01) $(0.02) $(0.02) Product Volumes and Prices Six
Months Ended June 30, 2006 2005 Volume Price Volume Price Gas (Mcf)
94,139 $6.55 5,877 $5.43 Oil (Bbls) 23,982 $56.97 -- $-- Three
Months Ended June 30, 2006 2005 Volume Price Volume Price Gas (Mcf)
25,760 $5.53 5,877 $5.43 Oil (Bbls) 10,989 $62.72 -- $--
DATASOURCE: Kodiak Oil & Gas Corp. CONTACT: Lynn A. Peterson,
President of Kodiak Oil & Gas Corp., +1-303-592-8075; or David
Charles of EnerCom, Inc., +1-303-296-8834, for Kodiak Oil & Gas
Corp.; or Heather Colpitts, Associate Account Manager of CHF
Investor Relations, +1-416-868-1079, ext. 223, for Kodiak Oil &
Gas Corp. Web site: http://www.kodiakog.com/
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