Business
Kodiak Oil & Gas Provides Operational Update
Kodiak Oil & Gas Provides Operational Update.
About this update from Ko Gold, Inc.
[{"type":"text","content":"\n\n\n\n\nDENVER, July 12 /CNW/ -- Kodiak Oil & Gas Corp.\n(Amex: KOG; TSX Venture: KOG), an oil and gas exploration and production\ncompany with assets in the Green River and Williston Basins, today provided an\ninterim update on its drilling and completion activities.\n\nGreen River Basin - Wyoming\n\nVermillion Deep\nPermitting procedures are in process for several wells on Kodiak's\nVermillion Basin acreage in Sweetwater County, Wyo. During 2005, Questar\nExploration, an independent Rockies exploration and production company,\ncommenced drilling on a multi-pay Cretaceous gas exploration program targeting\nover-pressured gas in the Baxter Shale and Frontier and Dakota sandstones.\nThe same operator recently announced a proposed environmental impact study\n(EIS) which includes plans for the drilling of over 4,000 wells on its acreage\nblock over the next 30 years. Approximately a third of Kodiak's acreage in\nthe Vermillion Basin has been included in the EIS. The balance of Kodiak's\nland has been excluded from the EIS so that drilling operations can continue\nwhile the EIS is being completed. The Company will pay its share of the EIS\ncosts, which are not known at this time. Kodiak currently controls 49,427\ngross acres (29,767 net), giving it the potential for nearly 750 locations\nbased upon a 40-acre spacing pattern.\nThe North Trail-State #4-36 (approximate 48% working interest [WI] -\nKodiak operated) is a proposed 14,625-foot test of the Baxter Shale and\nFrontier and Dakota sandstones. The nearest third-party production from the\ntargeted Formations is approximately three miles southwest of the proposed\nlocation. The Trail #31 well was placed on production in June 2006 with an\ninitial flow rate of 3.8 MMcf per day. Drilling operations on the North\nTrail-State #4-36 should commence during the fall of 2006. The Company is\ncurrently permitting three additional locations in the same section.\nKodiak is permitting four wells in its Horseshoe Basin Unit to test the\nBaxter Shale and Frontier and Dakota sandstones. The nearest third-party\nproduction from the targeted Formations is located approximately six miles\neast in the Canyon Creek and Whiskey Canyon Units. The #5-3 HB Unit\n(approximate 40% WI - Kodiak operated) well will be drilled to a total depth\nof 13,750 feet. Pipeline right-of-way is in process, and it ...