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Kodiak Oil and Gas announces exercise of warrants and provides operations update
Kodiak Oil and Gas announces exercise of warrants and provides operations update.
About this update from Ko Gold, Inc.
[{"type":"text","content":"\n\n\n\n\nDENVER, CO, Aug. 30 /CNW/ - Kodiak Oil & Gas Corp. (TSX Venture: KOG)\ntoday announced that it has received CDN$2,571,218 from the exercise of 91% of\nits Bonus Warrants outstanding. Investors exercised 2,571,218 out of a total\nof 2,824,643 Bonus Warrants outstanding. Bonus Warrants entitled the holders\nto purchase one common share for each warrant exercised at CDN$1.00. The\nbalance of 253,425 Bonus Warrants expired. The Company has no other warrants\noutstanding and with this transaction, Kodiak's outstanding and issued common\nshares are 47,481,758 and its fully diluted shares are 50,520,258.\n\"We appreciate the support of our shareholders,\" said Kodiak President\nLynn Peterson. \"With the proceeds from the Bonus Warrants, the Company's\nbalance sheet has in excess of US$6.5 million cash and cash equivalents. These\nfunds will provide the necessary capital to fund the Company's exploration\nprogram into 2006 when the Company expects to be generating cash flow.\"\n\nOperations Update\n-----------------\nWyoming\n-------\nThe Masterson Federal No. 24-11 well (40% working interest (WI); \nnon-operator) in Sweetwater County, Wyoming has been connected to the sales\nline. The well commenced production on August 24, 2005 and has flowed at an\naverage rate of 271 thousand cubic feet of gas per day (mcfd) on a\n10/64th choke during the first week. The well produces from the Second\nFrontier Formation.\nLocation work has commenced for the Chicken Ranch 8-9 well (33.33% WI;\nnon-operator), the initial test well on the Company's Chicken Ranch Unit in\nSweetwater County, Wyoming. Drilling is scheduled for the third quarter 2005.\nThe well will be drilled to an approximate depth of 8,600 feet to the natural\ngas potential in the Almond and Ericson Formations\nCompletion work continues on the Cornish 1-24 (25% WI; non-operator) in\nthe Company's Chicken Creek Prospect. The well was drilled to test natural gas\npotential in the Almond and Ericson Formations.\nA drilling contract has been signed for the drilling of five wells on the\nChicken Springs Prospect (50% WI before payout; non-operator). Drilling, with\nwells anticipated to be drilled consecutively, should commence in the third\nquarter 2005. These wells will surround the PRFED 14100 SW29 well, which was\nplaced on production in late June 2005. The wells are being d...