Business
Kodiak Oil & Gas Updates Operations
Kodiak Oil & Gas Updates Operations.
About this update from Ko Gold, Inc.
[{"type":"text","content":"\n\n\n\nDENVER, June 22 /CNW/ -- Kodiak Oil & Gas Corp. (Amex: KOG) an oil and\ngas exploration and production company with assets in the Green River and\nWilliston Basins, today provided an update on its North Trail Federal #4-35\nwell in the Vermillion Basin in Wyoming.\n\n\nVermillion Basin - Wyoming\n\n\nThe Company announces that it has reached total depth on its NT Fed #4-35\nwell (Kodiak 100% WI) of 13,655 feet and has run a pre-perforated production\nstring to a total depth of 13,655 feet. The Company reports that the well\nencountered gas shows in several fractures that were intercepted by the 1,655\nfeet of horizontal lateral of the main target within the Baxter shale. Due to\nmechanical difficulties created by the gas encountered, and the subsequent\nincrease in the weight of the drilling mud required to control the gas flow,\nthe well did not reach its projected horizontal length of 2,700 feet.\nCompletion efforts will follow immediately.\n\n\nIn an effort to minimize damage to the reservoir, completion efforts will\nbe staged. Initially, the pre-perforated liner will not be cemented into the\nhorizontal leg of the well. Furthermore, the well will not be mechanically\nstimulated, but rather will be turned to sales to evaluate the production\npotential from the natural fractures that are open in the well bore. By\nmonitoring the production data from the well, a process common in early-stage\nplays, Kodiak engineers hope to gain additional information about reservoir\nquality and characteristics. The length of this testing period will be\ndetermined based upon the production rates achieved, and could last from a few\nweeks to a few months.\n\n\nThe Company has elected to defer fracture stimulation until a later date,\nwhich typically leads to lower initial production rates than if fracture\nstimulated immediately. Once the production rates through natural fractures\nhave been evaluated, the well will then be mechanically stimulated through\nmodern hydraulic fracture procedures. With current natural gas price\ndifferentials afflicting Rockies producers, management believes it is an\nopportune time to move methodically on the well to try and gain additional\nknowledge of the reservoir to best recover the hydrocarbons in place.\n\n\nKodiak has built location for the HB #5-3 well located on the western\nedge of the pro...