DENVER, Sept. 6 /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 provided an update on its 2006 drilling program in the Vermillion Basin in Sweetwater County, Wyo. In early September, Kodiak entered into a drilling contract with True Drilling LLC, a private drilling contractor, to drill two test wells in the Vermillion Basin to evaluate the natural gas potential of the Baxter Shale and Frontier and Dakota sands to a proposed total depth of 14,800 feet. The Company anticipates that the drilling rig will become available in early October. The True rig and its crew have been working in the Vermillion Basin drilling Baxter Shale wells for the past 16 months and are experienced with the formations. Kodiak intends to begin building locations in mid-September 2006. The first well, the North Trail-State #4-36 (90% working interest [WI] -- Kodiak operated), will be drilled to a proposed total depth of 14,625 feet to test the Baxter Shale and Frontier and Dakota sands. The nearest third-party production from the targeted formations, producing from the Trail #31 in which Kodiak has no interest, is approximately three miles southwest of the proposed location. In June 2006, the Trail #31 well was placed on production with an initial flow rate of 3.8 million cubic feet of natural gas (MMcf) per day. Drilling operations on the North Trail-State #4-36 should commence in October 2006 with an estimated time to total depth of 45 days. Drilling and completion costs are estimated at approximately $5 million. Approximately six miles northwest of the North Trail #4-36, Kodiak has permitted the #1-8 CR Unit (approximately 60% WI -- Kodiak operated) well in its Chicken Ranch Unit. The proposed total depth is 14,800 feet. The Company anticipates drilling this well immediately following the Kodiak #4-36 with the same rig. The Company is participating in the Hiawatha Environmental Impact Study (EIS) which includes plans by industry for the drilling of over 4,000 wells over the next 30 years. Approximately 30% of Kodiak's acreage in the Vermillion Basin has been included in the EIS. The balance of Kodiak's land has been excluded from the EIS so that drilling operations can continue while the EIS is being completed. Kodiak currently controls 49,427 gross acres (29,767 net), giving it the potential for nearly 750 locations based upon a 40-acre spacing pattern. Commenting on the planned drilling, Lynn Peterson, Kodiak's President and CEO said: "Today's announcement constitutes a very important step in Kodiak's development. Given our extensive geological work and confidence in the Baxter Shale play, the Company elected to operate its first well in the play while maintaining a high working interest. We believe that maintaining control and operatorship over as much of our leasehold as possible will give us the best opportunity to grow the Company's reserves and production. We currently operate 80% of our lands here and will use operatorship to optimize the pace of development in the Vermillion. If the initial two Baxter Shale wells are successful, they will provide additional cash flow. More importantly, we believe these wells may confirm our geologic model as we look to best develop what we believe could be a large Rockies resource 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. 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. 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; or Heather Colpitts, Associate Account Manager of CHF Investor Relations, +1-416-868-1079, ext. 223, both for Kodiak Oil & Gas Corp. Web site: http://www.kodiakog.com/

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