Kodiak Oil & Gas Completing Vermillion Basin Well
January 24 2007 - 7:30AM
PR Newswire (US)
DENVER, Jan. 24 /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 2007 drilling program in
the Vermillion Basin in Wyoming and in the Williston Basin in North
Dakota. Vermillion Basin -- Wyoming Completion operations continue
on Kodiak's North Trail-State #4-36 well (100% working interest
[WI] -- Kodiak-operated). The well has been drilled to 14,338 feet
to evaluate the natural gas potential of the over-pressured Baxter
Shale and Frontier and Dakota sands. The well has been fracture
stimulated in nine separate stages with temporary plugs set between
each stage. The top two plugs were drilled out, opening up the
three stages with perforations from a depth of 11,366 feet to
12,056 feet in the Baxter Shale. During completion operations and
flowback, the first three stages flowed at rates in excess of 3
million cubic feet (MMCF) gas per day with casing pressure of 800
psi on a 30/64ths-inch choke. While we are encouraged by these
flowback rates, we would expect actual production rates to be
lower. Completion of the remaining six stages has been delayed due
to extreme weather conditions, but Kodiak expects to drill out the
remaining plugs and test all of the zones in the next few weeks, as
weather conditions improve. The well is currently producing gas
into the sales line at curtailed rates as completion work
continues. The Company has completed drilling operations on the NT
#1-33 well (100% WI -- Kodiak-operated), located three miles west
of the North Trail State #4-36. The well was drilled to 14,500
feet, and production casing has been set to total depth. The
drilling costs through logs and production casing were
approximately $3.5 million, bringing it slightly under our AFE
projections. The Company anticipates that completion work will be
completed in February 2007. Gas gathering facilities are currently
being installed after which completion will begin. Kodiak is in the
process of obtaining bids from several drilling contractors with
the intention of entering into a contract for a continuous drilling
program though the end of 2007. The Company has 17 permits that are
in various stages of approval with the expectation that drilling
could commence April 1, 2007. The Company is fully funded for this
drilling program. Williston Basin -- North Dakota and Montana
Grizzly Bakken Prospect -- McKenzie County, North Dakota Kodiak has
completed drilling operations on the Grizzly Federal #1-27H well
(62.5% WI -- Kodiak operated). The well has a single lateral well
bore with a total of 7,293 feet open in the Bakken Formation. The
well commenced production in late December flowing naturally at a
rate of 308 barrels of oil per day (BOPD) and has produced 4,859
gross BO during the first 31 days of production without stimulation
work or a pumping unit. This was the last of three Bakken wells
that the Company drilled during 2006. The Grizzly Federal #4-11H
well was put on production flowing naturally on December 6, 2006
and has produced 17,055 gross BO to date. The Grizzly #13-6 well
was fracture stimulated and is currently being flowed back. The
Company is evaluating three additional development locations for
drilling in 2007 Mission Canyon/Red River Projects -- Sheridan
County, Montana The Company has completed drilling operations on
the Larsh #2-13 well (50% WI -- Kodiak-operated), located in
Sheridan County, Montana, which evaluated the Red River Formation
to a depth of 11,200 feet. Based upon oil and gas recovery from a
drill stem test, production casing has been run to 11,100 feet and
completion operations have commenced. Utilizing production data
from this well, Kodiak will evaluate additional locations for
possible development during 2007. The Company is currently drilling
the CT #14-9 well (50% WI -- Kodiak operated), approximately three
miles east of the Larsh #2-13 well. The CT #14-9 is a development
well in the Lowell Field where Kodiak has four existing wells that
have produced 134,475 gross BO since September 2005 through
December 2006. The well is drilling below 6,300 feet with an
expected total depth of approximately 7,800 feet. 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 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, 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, for Kodiak Oil & Gas Corp.; or Heather
Colpitts, Account Manager of CHF Investor Relations,
+1-416-868-1079, ext.223, for Kodiak Oil & Gas Corp. Web site:
http://www.kodiakog.com/
Copyright