DENVER, Dec. 13 /CNW/ - Kodiak Oil & Gas Corp. (TSX Venture: KOG;
GGF.PK) today announced the sale through a private placement of 7 million
shares of common stock to a group of U.S. and Canadian institutional
investors. The Company raised a total of CDN $9.8 million at a share price of
CDN$1.40. The private placement was non-brokered.
Proceeds from the financing will help fund Kodiak's share of its 2006
exploration and drilling programs in the Green River Basin in Wyoming and the
Williston Basin of Eastern Montana and Western North Dakota. Funds will also
be used for working capital and general corporate purposes.
The financing does not result in a change in control of the Company. The
shares are subject to a four-month hold period.
The Shares have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in
the United States unless such securities are registered under the Securities
Act or an exemption from such registration requirements is available.
About Kodiak Oil & Gas Corp.
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Kodiak Oil & Gas, headquartered in Denver, is an independent energy
exploration and development company focused on exploring, developing and
producing oil and natural gas in the Williston and Greater Green River Basins
in the U.S. Rocky Mountains. The common shares of the Company are listed for
trading on the TSX Venture Exchange under the symbol "KOG" and the U.S. symbol
"KOGGF."
Forward-Looking Statements
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This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, fluctuations in the prices
of oil and gas, uncertainties inherent in estimating quantities of oil and gas
reserves and projecting future rates of production and timing of development
activities, competition, operating risks, acquisition risks, liquidity and
capital requirements, the effects of governmental regulation, adverse changes
in the market for the Company's oil and gas production, dependence upon
third-party vendors, and other risks detailed in the Company's periodic report
filings with the Securities and Exchange Commission. By making these
forward-looking statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of this release.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
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