DENVER, Jan. 31 /CNW/ - Kodiak Oil & Gas Corp. (TSX Venture: KOG;
GGF.PK) today provided an update on its production, drilling and completion
activities in the Williston Basin and Green River Basin.
Williston Basin - Montana and North Dakota
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The Company has completed production facilities on its Wrangler Prospect
(50% Working Interest (WI); operated by Kodiak) in Sheridan County, Montana.
The Company currently has three wells on production with a fourth well
scheduled to be on production in February. Current field production from the
three wells is approximately 400 barrels of oil per day (BOPD). The Company
has begun permitting procedures for additional development drilling locations
in 2006.
The Pederson No. 14-9H well (43.75% WI; operated by Kodiak) on the
Company's Great Bear Prospect in Divide County, North Dakota reached total
depth on January 22. The horizontal well was drilled to an approximate
vertical depth of 10,600 feet and a total measured depth of 14,725 feet to
test the Red River C Formation. Based upon sample shows recovered during
drilling, production liner has been set and completion work will follow
immediately. The well is a direct offset to a vertical well drilled in 1984
with cumulative production of 173,000 barrels of oil and is currently
producing approximately 20 BOPD. It is expected that the horizontal drilling
technology will improve the recovery efficiency of the productive interval.
Approximately three miles east of the Pederson No. 14-9H well, the
Company has commenced drilling of the Nielsen No. 14-12 well (50% WI; operated
by Kodiak) which will be drilled to a vertical depth of 10,750 feet to
evaluate the Red River C Formation. The well is targeting a seismically-
defined structure.
The Company recently acquired an additional 25% working interest in its
Grizzly Prospect, located in the fairway of the Bakken trend in McKenzie
County, North Dakota, bringing its total working interest in the play to
62.5%. The Company has begun permitting procedures for two locations on this
block of acreage and expects to commence drilling operations early in the
second quarter on the Anderson No. 13-6H well (62.5% WI; operated by Kodiak).
The Company's acreage has been directly offset to the north with two multi-
lateral wells that are currently producing from the Bakken Formation.
Green River Basin - Wyoming
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Development work on the Company's Chicken Springs Prospect (50% WI; non-
operator) in Sweetwater County, Wyoming continues. The CSFED 14100 4-32 and
the CSFED 14100 4-29 wells were drilled to test natural gas potential in the
Almond sands and are offsets to the Company's CSFED 14100 SW29 producing well.
These wells have been completed and connected to the existing production
facilities and sales line. Compression facilities have been installed and are
being put into operation.
Meanwhile, one mile to the west the CSFED 14100 2-31H well (50% WI;
non-operator) reached total depth on January 8. Casing was set just above the
coals at approximately 6,200 feet and the well reached total measured depth of
7,890 feet. Horizontal drilling technology was used to evaluate the potential
of the thick Almond coal. This 16-foot bench of coal is present in the
surrounding wells and was tested for gas content in the CSFED 14100 SW29 well.
The gas content of the coals was nearly 500 standard cubic feet per ton based
upon side wall cores taken from the well. Production liner has been set and
the well is currently being flow tested. It has been connected to the Chicken
Springs production facilities and production testing will continue.
Further drilling activity in the Chicken Springs area has been
discontinued until the second quarter of 2006 due to industry winter drilling
stipulations particular to BLM leases. Permitting procedures are continuing
and the Company anticipates the drilling of up to ten wells in 2006.
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. 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 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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