DENVER, Nov. 3 /CNW/ - Kodiak Oil & Gas Corp. (TSX Venture: KOG;
GGF.PK) today provided an update on drilling activities in the Williston
Basin and Green River Basin.
Montana, Williston Basin
The State No. 6-16 well, (25% Working Interest (WI); operated by Kodiak)
located in the Company's Wrangler Prospect in Sheridan County, Montana, has
been completed. The well has flowed an average of 65 barrels of oil per day
during the first four days of production from the Mission Canyon Formation at
a depth of 7,560-7,566 feet. The well, a half mile step-out from the State
No. 8-16, is currently being produced on a 12/64ths inch choke. Central
production facilities are being installed to combine production with the State
No. 8-16 well.
On the North Wrangler Prospect, the Larsh No. 16-11 well, (25% WI;
operated by Kodiak) has reached total depth of 7,620 feet. The well did not
encounter any porosity in the Mission Canyon Formation and has been plugged
and abandoned. Based upon the drilling results, the North Wrangler Prospect
area, located 3.5 miles west of the Company's Lowell Prospect, will be further
evaluated for potential of the Mission Canyon and the deeper Red River
Formation. Kodiak's share of the dry hole costs was approximately $180,000.
The drilling rig is currently being moved back to the Lowell Prospect
where Kodiak will spud the State No. 10-16 well, (25% WI; operated by Kodiak)
which will be drilled to an estimated total depth of 7,800 feet. The Company
intends to drill one additional location in 2005, the Christensen Trust
No. 15-9, after the State No. 10-16 reaches total depth.
Wyoming, Green River Basin
Kodiak has reached total depth of 6,221 feet on its second Chicken
Spring's well, PRFED 14100 4-32 (50% WI; non-operator), in Sweetwater County,
Wyoming. Logging procedures have been completed and production casing has been
set. The well was drilled to test natural gas potential in the Almond sands
and coals and is an offset to the Company's PRFED 14100 SW29 producing well.
Completion procedures will commence in mid-November. Gathering lines and
production facilities are installed and the new wells will be tied into the
facilities prior to completion procedures. Compression facilities are
currently being installed.
The drilling rig is being moved one mile west to the CSFED 14100 2-31H
location (50% WI; non-operator). This well will utilize horizontal drilling
technology to evaluate the potential of the thick Almond coal. This 16 foot
bench of coal has been seen in the surrounding wells and was tested for gas
content in the PRFED 14100 SW29. The gas content of the coals was nearly
500 scf per ton based upon side wall cores taken from the well. The drilling
program projects two laterals out of one well bore extending 3,500 feet each.
About Kodiak Oil & Gas Corp.
----------------------------
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.V" and the U.S.
symbol "KOGGF."
Forward-Looking Statements
--------------------------
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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
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