Kodiak Oil & Gas Corp. Announces Vermillion Basin Production and Completes Rig Mobilization
November 18 2008 - 7:00AM
PR Newswire (US)
DENVER, Nov. 18 /PRNewswire-FirstCall/ -- Kodiak Oil & Gas
Corp. (NYSE Alternext US: KOG), an oil and gas exploration and
production company with assets in the Green River Basin of
southwest Wyoming and Colorado and the Williston Basin of North
Dakota and Montana, today provided a Vermillion Basin production
update and announced the pending completion of rig mobilization in
its Bakken oil play. Vermillion Basin Operations Update --
Sweetwater County, Wyoming Kodiak today announced that its
Horseshoe Basin Unit well, HSB #5-3 (non- operated, 50% WI; 41.7%
NRI), was recently connected to sales. During the first 6.5 days of
production, the well produced 3,836 barrels of condensate and 21.7
million cubic feet of natural gas (MMcf). Currently the well is
producing 412 barrels of condensate and 2.19 MMcf of natural gas
equivalents per day on a 24/64" choke with 850 psi flowing casing
pressure. The well was initially drilled and completed by Kodiak in
November 2007. Devon Energy now operates the well as part of the
first quarter 2008 Vermillion Basin Exploration Agreement. Drilling
activity continues as noted in the Company's last operations
update, with drilling operations continuing on two horizontal
wells. In other Vermillion Basin activity, Kodiak participated in
the completion of the shallower Almond and Ericson formations in
the Whiskey Canyon Unit well, WCU #3 (non-operated, 13.3% WI; 11.4%
NRI). The well has been turned to sales at approximately 2.1 MMcf
per day. Currently, production tubing is being run and the well
will be returned to sales immediately following the completion of
the tubing run. Williston Basin Operations Update-Dunn County,
North Dakota Rigging up operations on Kodiak's new-built rig are
nearing completion. The first well, the Moccasin Creek (MC)
#16-34-2H well (60% WI - Kodiak operates), is expected to spud by
the end of this week. The well, located in the southwestern portion
of Kodiak's leasehold, will be drilled to a proposed true vertical
depth of 10,300 feet, and a projected total measured depth of
15,700 feet. Upon reaching total depth, the rig will skid to
facilitate drilling of the MC #16-34H well (60% WI - Kodiak
operates). Completion work will commence after both wells are
drilled and liners have been run in each lateral well bore. The
first two wells, the MC #16-34-2H and the MC #16-34H, will be
drilled under a participation agreement, whereby Kodiak will pay
20% of the drilling and completion costs associated with the first,
third, fifth and seventh wells drilled on lands included in the
participating area for its 60% WI. Kodiak's joint venture partner
will pay 80% of the wells' costs for its 40% interest in each of
those wells. All other wells on the lands covered under the
participation agreement will be drilled in proportion to the 60/40
percent working interest of each party. About Kodiak Oil & Gas
Corp. Denver-based Kodiak Oil & Gas Corp. 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 Company's
common shares are listed for trading on the NYSE Alternext US
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. Forward-looking statements in this document include
statements regarding the Company's exploration, drilling and
development programs, the Company's expectations regarding the
timing and success of such programs and the timing and availability
of financing to satisfy the capital requirements, 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, uncertainties regarding the
Company's liquidity and capital requirements and the availability
and cost of capital necessary to fund the Company's current plan of
operations, 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. DATASOURCE: Kodiak Oil & Gas Corp. CONTACT: Mr.
Lynn A. Peterson, CEO and President of Kodiak Oil & Gas Corp.,
+1-303-592-8075; or Mr. David P. Charles of Sierra Partners LLC,
+1-303-757-2510 x11, for Kodiak Oil & Gas Corp. Web site:
http://www.kodiakog.com/
Copyright