Business
Kodiak Oil & Gas Completing Vermillion Basin Well
Kodiak Oil & Gas Completing Vermillion Basin Well.
About this update from Ko Gold, Inc.
[{"type":"text","content":"\n\n\n\nDENVER, Jan. 24 /CNW/ -- Kodiak Oil & Gas Corp. (Amex: KOG; TSX Venture),\nan oil and gas exploration and production company with assets in the Green\nRiver and Williston Basins, today provided an update on its 2007 drilling\nprogram in the Vermillion Basin in Wyoming and in the Williston Basin in North\nDakota.\n\n\nVermillion Basin -- Wyoming\n\n\nCompletion operations continue on Kodiak's North Trail-State #4-36 well\n(100% working interest [WI] -- Kodiak-operated). The well has been drilled to\n14,338 feet to evaluate the natural gas potential of the over-pressured Baxter\nShale and Frontier and Dakota sands. The well has been fracture stimulated in\nnine separate stages with temporary plugs set between each stage. The top two\nplugs were drilled out, opening up the three stages with perforations from a\ndepth of 11,366 feet to 12,056 feet in the Baxter Shale. During completion\noperations and flowback, the first three stages flowed at rates in excess of 3\nmillion cubic feet (MMCF) gas per day with casing pressure of 800 psi on a\n30/64ths-inch choke. While we are encouraged by these flowback rates, we\nwould expect actual production rates to be lower.\n\n\nCompletion of the remaining six stages has been delayed due to extreme\nweather conditions, but Kodiak expects to drill out the remaining plugs and\ntest all of the zones in the next few weeks, as weather conditions improve.\nThe well is currently producing gas into the sales line at curtailed rates as\ncompletion work continues.\n\n\nThe Company has completed drilling operations on the NT #1-33 well (100%\nWI -- Kodiak-operated), located three miles west of the North Trail State\n#4-36. The well was drilled to 14,500 feet, and production casing has been\nset to total depth. The drilling costs through logs and production casing\nwere approximately $3.5 million, bringing it slightly under our AFE\nprojections. The Company anticipates that completion work will be completed\nin February 2007. Gas gathering facilities are currently being installed\nafter which completion will begin.\n\n\nKodiak is in the process of obtaining bids from several drilling\ncontractors with the intention of entering into a contract for a continuous\ndrilling program though the end of 2007. The Company has 17 permits that are\nin various stages of approval with the expectation that dri...