DENVER, March 5 /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 interim update on its drilling program in the Vermillion Basin in Wyoming and in the Williston Basin in North Dakota. Vermillion Basin-Sweetwater County, Wyoming The Company announces early results for the NT Federal #1-33 well (100% working interest [WI] - Kodiak operated) in the Vermillion Basin in southwest Wyoming. The well, located in Section 33, T14N, R100W reached a total depth of 14,500 feet in late January 2007. After fracture stimulation of the over pressured Frontier (one stage) and Baxter (eight stages) formations, the well was turned to sales in early March. The well tested at rates of approximately 2.0 million cubic feet per day of natural gas and has been producing on various choke sizes at between 1.0 and 2.0 million cubic feet per day into the sales line. The well was initially flowed back and cleaned out during the second week of February; however, at that time a significant amount of formation water was being produced. Based upon a subsequent production log, the water appeared to be coming primarily from the Frontier Formation and a bridge plug was set above the Frontier to shut off the water. The same production log indicated that approximately 28% of the gas production was also coming from the Frontier Formation, which has now been plugged off. Based upon early interpretation and results from wells drilled in the Vermillion Basin to date, it appears that Kodiak's fracture stimulation procedures have intercepted a nearby fault and the water is presumably coming from a lower formation and not the Frontier. As such, the Frontier will continue to be a primary target for continued exploration effort. Completion operations continue on Kodiak's North Trail-State #4-36 well (100% WI - Kodiak operated), which reached a total depth of 14,338 feet in late December 2006. The well has been fracture stimulated in nine separate stages with temporary plugs set between each stage. While drilling out the plugs in the fourth stage, the Company encountered equipment failure, which is expected to be resolved later this month. Subject to completion, this well is expected to be turned to sales at that time. Eight permits have recently been approved by the Bureau of Land Management for the 2007 drilling program in Wyoming. A drilling contractor has been selected and drilling should commence on the next Baxter Shale/Frontier Sand well in approximately 30 days. Kodiak intends to drill five wells in the immediate vicinity of the two above-noted wells. In addition two step-out locations will spud later in the year to determine the productive potential across other parts of the leasehold. The Company is fully funded for its 2007 drilling program. Williston Basin-North Dakota and Montana Mission Canyon/Red River Projects - Sheridan County, Montana and Divide County, North Dakota The Larsh #2-13 well (50% WI - Kodiak operated), located in Sheridan County, Mont., which evaluated the Red River Formation to a depth 11,200 feet, was placed on production in early February. The well initially flowed at a rate of 232 barrels of oil per day (BOPD) from the Red River B and C Formations and through the end of February had cumulative production of 2,849 BO. This well is scheduled to be put on pump in the second quarter of the year. The well was based upon 3-D seismic that was acquired during 2006. Subject to continued production results, the Larsh #2-13 establishes development locations that are currently being permitted and will be drilled later this year. Additionally the Company has other seismic leads to evaluate during 2007 as it owns a 50% working interest under 21,807 gross acres in the immediate area. Kodiak plugged and abandoned the CT #14-9 well (50% WI - Kodiak operated), approximately three miles east, which was a step out well for the Lowell Field where Kodiak has four existing wells. The well was drilled to a total depth of 7,748 feet to evaluate the Mission Canyon Formation. The Company is permitting a location on its Great Bear Prospect in Divide County, N. D. where the primary target is the Red River Formation at an approximate depth of 11,000 feet. The #11-10 Drawbond well (approximate 40% WI - Kodiak operated) is expected to be drilled during the second quarter of 2007. The location of the #11-10 Drawbond well was developed based upon the results of the #14-9 Pederson well, drilled in late 2005, and a new interpretation of the seismic data. Management Comment Commenting on the Company's progress, Lynn Peterson, Kodiak's President and CEO said: "We are pleased that the drilling of the first two Vermillion wells indicates the potential presence of gas in the over-pressured Baxter and Frontier formations over a significant portion of the our leasehold. However, we are disappointed that completion operations on our first two Vermillion Basin wells have taken longer that we originally expected and our completion costs have exceeded our original estimates. Had our completion work gone more efficiently, we believe that the initial production rates from the wells most likely would have exceeded our announced rates. We recognize that every emerging play has a learning curve and we will reevaluate all of our drilling and completion work prior to embarking on our 2007 drilling program. This play will require a great deal of time and effort to fully recognize its potential for large quantities of gas, which are known to be in place from other drilling activity. We are excited to continue our 2007 drilling program, which will continue to evaluate the potential of additional leasehold." He added, "The Williston Basin continues to provide the Company with a growing cash flow. Our exploration efforts here continue to pay off as we can continue to evaluate opportunities identified by 3-D seismic. We believe that this basin holds significant potential for the Company. Beginning in April 2007 we anticipate dedicating a rig here throughout the year." 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, and the Company's expectations regarding the Company's revenues in future periods. 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: 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, Account Manager, CHF Investor Relations, +1-416-868-1079, Ext.223

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