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Kodiak Oil & Gas Corp. Announces Initial 2007 Capital Budget
Kodiak Oil & Gas Corp. Announces Initial 2007 Capital Budget.
About this update from Ko Gold, Inc.
[{"type":"text","content":"\n\n\n\nDENVER, Jan. 4 /CNW/ -- Kodiak Oil & Gas Corp. (Amex: KOG; TSX Venture)\ntoday announced the approval by its Board of Directors of an initial capital\nexpenditure budget (\"CAPEX\") of $60 million for its 2007 drilling program. \nThe CAPEX budget includes the proposed drilling and completion of\napproximately 20 gross wells (13.38 net wells) in the Greater Green River and\nWilliston Basins. By comparison, Kodiak invested approximately $33 million in\n2006 to develop its oil and gas properties, drilling 10 gross wells (6.13 net\nwells).\n\n\nVermillion Basin\n\n\nThe $60 million CAPEX, the largest in Kodiak's history, includes $31.5\nmillion for seven gross (100% working interest) proposed wells in the emerging\nVermillion Basin deep-gas play targeting the Baxter Shale and Dakota and\nFrontier sands. Additionally, Kodiak intends to participate in two\nnon-operated wells (25% WI, $2.25 million CAPEX) testing the same deep-gas\nproductive intervals. Approximately $5 million is allocated for seismic and\nleasehold acquisitions in the Vermillion and other Green River Basin projects,\nwith $2.5 million designated for two wells classified as other projects (50%\nWI). In total, $41.25 million, or 69% of the 2007 CAPEX, will be invested in\nVermillion Basin projects. This compares to $22 million invested in the area\nin 2006 to drill six gross wells (3.75 net wells).\n\n\nWilliston Basin\n\n\nFor 2007, Kodiak has allocated $18.75 million for the drilling of nine\ngross wells (4.88 net wells) in the Williston Basin. The budget includes\nthree proposed Bakken Shale oil wells (62.5% WI, $9.75 million CAPEX) and six\nproposed Mission Canyon / Red River oil wells (50% WI, $6 million CAPEX).\nApproximately $3 million is allocated for seismic and leasehold acquisitions\nin the Williston Basin. Kodiak invested approximately $11 million in 2006 to\ndrill four gross wells (2.38 net wells) in the Williston.\n\n\nThe 2007 CAPEX may be revised and is subject to rig availability, access\nto oilfield services, drilling results, operational developments, market\nconditions, commodity prices and industry partner timing on non-operated\nwells.\n\n\nManagement Comment\n\n\nCommenting on the Company's progress, Lynn Peterson, Kodiak's President\nand CEO said: \"Kodiak is fortunate in many ways as we enter 2007. We control\na large leasehold posi...