DENVER, Oct. 30 /PRNewswire-FirstCall/ -- Kodiak Oil & Gas Corp. (Amex: KOG; TSX Venture), 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., and production update on its Williston Basin Bakken oil play in McKenzie County, N.D. Vermillion Basin -- Wyoming Kodiak recently commenced drilling operations on the North Trail-State #4-36 (100% working interest [WI] -- Kodiak operated), which is expected to be drilled to a total depth of 14,625 feet to evaluate the natural gas potential of the Baxter Shale and Frontier and Dakota sands. Surface casing has been set to 1,812 feet and the well is currently drilling below 4,700 feet. Drilling operations are expected to be completed in early December. The nearest third-party production from the targeted formations, the Trail #31 in which Kodiak has no interest, is approximately three miles southwest of the North Trail-State #4-36. The Trail #31 well was placed on production in May 2006 with an initial flow rate of 3.8 million cubic feet of natural gas (MMcf) per day. In other activity in the immediate area, the Trail #30 well, in which Kodiak has no interest, is currently drilling three miles west of the North Trail State #4-36. Permitting is in process for the NT #1-33 (100% WI -- Kodiak operated) located three miles west of the North Trail State #4-36 and one mile north of the Trail #30. Subject to BLM winter drilling restrictions the Company believes that this well could be drilled immediately after the North Trail State #4-36 in December. Kodiak participated in the development drilling of two shallow wells drilled to 6,000 feet to develop the Almond Sands in the Chicken Spring Unit (50% WI-non operated) as part of a three well program. Drilling of the third well has commenced. Williston Basin -- North Dakota and Montana Grizzly Prospect -- McKenzie County, North Dakota Completion operations were successful on the Grizzly Federal #4-11H well, (62.5% WI -- Kodiak operated) located McKenzie County, N.D. Three laterals were drilled in the well with a total of 14,000 feet open in the Bakken Formation. The well initially tested at a calculated rate of 600 barrels of oil per day (BOPD) and 300 thousand cubic feet of natural gas per day (Mcfg/d). Due to constraints on surface production facilities the well has been choked back to a 6/64ths inch choke with flowing tubing pressure of 2460 psi. The well is currently producing at a rate of 225 BOPD and 100 Mcfg/d. The Company intends to install additional production facilities so that the well can flow at higher volumes. Two miles directly east the Company is preparing to fracture stimulate the Grizzly 13-6H well (62.5% WI -- Kodiak operated). The well was placed on production in late July. Kodiak is currently drilling the Grizzly Federal #1-27H well (62.5% WI before payout -- Kodiak operated) with a surface location three miles north of the Grizzly Federal #4-11H well. The drilling program for the well projects one 9,000 foot lateral well bore in the Bakken Formation Drilling of the well is projected to be completed in late November. The Grizzly Federal #1-27H well will be Kodiak's final Bakken well in the 2006 drilling program. The Company has identified three additional development locations to drill in 2007 in the immediate area. Management Comment Commenting on the drilling and completion progress, Lynn Peterson, Kodiak's President and CEO said: "We are pleased to commence drilling operations to evaluate the deep gas potential of our acreage in the Vermillion Basin. We believe that this area holds a great deal of potential for the Company. We anticipate reaching total depth in December and hope to complete the well immediately thereafter. Our completion practices include the installation of pipelines and surface facilities so that we can turn the well to sales without delay. "The Bakken program and its encouraging early results, has been a pleasant addition to our core operating areas. Production from this play will continue to help us grow cash flow as we close in on 2006 and we look forward to an active 2007, in both the Williston and Vermillion Basins." 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. %SEDAR: 00007900 CONTACT: Mr. Lynn A. Peterson, President of Kodiak Oil & Gas Corp., +1-303-592-8075; or Mr. David Charles of EnerCom, Inc., +1-303-296-8834, for Kodiak Oil & Gas Corp.; or Ms. Heather Colpitts, Associate Account Manager of CHF Investor Relations, +1-416-868-107, ext. 223, for Kodiak Oil & Gas Corp. Web site: http://www.kodiakog.com/

Copyright