Kodiak Oil & Gas Corp. Announces Preliminary 2009 CAPEX, Exploration Joint Venture and Updates Operations

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[{"type":"text","content":"\n\n\n\nDENVER, Nov. 5 /CNW/ -- Kodiak Oil & Gas Corp. (NYSE Alternext US: KOG),\nan oil and gas exploration and production company with assets in the Green\nRiver Basin of southwest Wyoming and Colorado and the Williston Basin of North\nDakota and Montana, today provided an activity update in conjunction with its\nthird quarter 2008 financial and operating results also issued today.\n\n\n2009 Preliminary Capital Expenditure Budget\n\n\nKodiak today announced that its Board of Directors has approved its\npreliminary 2009 capital expenditure budget (Capex), which is focused on the\nBakken oil play on the Fort Berthold Indian Reservation (FBIR) in Dunn County,\nN.D. The initial Capex relates to Kodiak-operated wells in Dunn County. The\nCompany is allocating $40 million toward drilling and completion activities,\ninstallation of associated surface facilities and related infrastructure. An\nestimated 14 gross (7.8 net wells) wells, utilizing two drilling rigs, are\nincluded in the initial Capex. Kodiak's working interest (WI) ranges from 50%\nto 70% in the 2009 drilling program, providing flexibility within the budget\nin identifying suitable well locations.\n\n\nGiven current market conditions, and due to lower natural gas prices in\nthe Rocky Mountains, the Company has deferred plans for drilling on other\nacreage in North Dakota and Montana that is outside the Bakken play on the\nFort Berthold Indian Reservation, as well as drilling on prospect acreage that\nit controls in Wyoming. Kodiak intends to maintain these properties for\nfuture exploration, exploitation and development opportunities.\n\n\nThe preliminary 2009 Capex budget is subject to market conditions,\noilfield services and equipment availability, commodity prices and drilling\nresults. Potential leasehold acquisitions are not included in the initial\nCapex; however, given current market conditions, the Company does not\nanticipate any significant acquisition opportunities in 2009. The Company\nexpects to fund the budget primarily from cash on hand, utilization of tubular\ngoods acquired in advance of drilling, cash flow from operations and\nborrowings under the Company's reserve-based revolving line of credit.\n\n\nWilliston Basin Operations Update-Dunn County, North Dakota\n\n\nAs of November 3, 2008, Kodiak had approximately 56,000 gross and 36,000\nnet acres ...

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