DENVER, Nov. 7 /CNW/ - Kodiak Oil & Gas Corp. (AMEX and TSX Venture:
G), an oil and gas exploration and production company with assets in the
Green River and Williston Basins, today reported financial and operating
results for the nine months ended September 30, 2006. Financial tables for the
nine-month period and third quarter 2006 are included at the end of this news
release.
Nine months ended September 30, 2006
------------------------------------
The Company reported a net loss for the nine months ended September 30,
2006 of $1,403,000 or $0.02 per share compared with a net loss of $868,000 or
$0.02 per share for the same period in 2005. All per share amounts are
presented on a fully diluted basis. Net income before depreciation, depletion
and amortization, gain on foreign currency exchange, and stock based
compensation charges was $968,000 for the nine-month period ended
September 30, 2006 as compared to a loss of $864,000 for the same period
ending September 30, 2005. Oil and gas sales for the nine-month period were
$2,811,000 versus $102,000 in the same period in 2005. Total revenues were
$3,411,000 versus $172,000 in the same period a year ago.
Gas production volumes were 93,721 thousand cubic feet (Mcf) for the
nine-month period ended September 30, 2006, compared to 28,907 Mcf for the
same period in 2005. Oil production volumes were 38,223 barrels for the
nine-month period ended September 30, 2006, compared to 300 barrels during the
same period in 2005. For the nine-month period ending September 30, 2006
Kodiak produced 53,834 barrels of oil equivalent using a conversion rate of 6
Mcf gas to each barrel of oil.
Gas price realizations decreased 16.5% to $5.96 per Mcf for the
nine-month period ended September 30, 2006 compared to the same period in
2005. Oil price realizations decreased 1.42% to $58.93 per barrel for the
period ended September 30, 2006. Kodiak's production is currently unhedged.
As of September 30, 2006, Kodiak had working capital of $21,025,000 with
no long-term debt. During the nine-month period ended September 30, 2006, the
Company invested $22,111,000 for exploration and development of its leasehold.
Results are presented for the nine-month period because comparisons to
the year-ago quarterly period are skewed by the capital the Company has raised
and the investment in developing its properties. Kodiak will present quarterly
comparisons as they become a more meaningful way to assess financial and
operational performance and expected growth.
Management Comments
-------------------
Commenting on today's results, Lynn Peterson, Kodiak's President and CEO
said: "We have continued to increase our revenues each of the three quarters
of 2006 as we progress in developing our leasehold. With our recent
discoveries in the Williston Basin we would expect that trend to continue into
the fourth quarter. The importance of our Williston oil plays is evident in
the cash flow it throws off at historically high oil prices.
"In the Vermillion Basin in Wyoming, the North Trail State No. 4-36 well
is drilling below 9,200 feet and we anticipate entering the over-pressured pay
in the coming week. This is our first well drilled in the highly
over-pressured Baxter Shale and Frontier and Dakota Sands and we are pleased
with our progress to date. With $21 million in cash at September, 30, 2006,
and zero debt, Kodiak is well-positioned to fund its remaining 2006 CAPEX
program and into the first half of 2007. We expect to fund the 2007 CAPEX
through a combination of cash on hand, cash flow, access to a reserve-based
revolving line of credit which we intend to establish by year-end, and the
equity markets."
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 Green River Basins in the
U.S. Rocky Mountains. For further information, please visit www.kodiakog.com.
The common shares of the Company are listed for trading on the American Stock
Exchange and the TSX Venture Exchange under the symbol "KOG."
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. Forward looking statements are statements
that are not historical facts and are generally, but not always, identified by
the words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," 'projects," "potential" and similar expressions, or that events
or conditions "will," "would," "may," "could" or "should" occur. Information
inferred from the interpretation of drilling results may also be deemed to be
forward looking statements, as it constitutes a prediction of what might be
found to be present when and if a well is actually developed. Forward-looking
statements in this document include statements regarding the Company's
exploration, drilling and development plans, the Company's expectations
regarding the timing and success of such programs, and the Company's
expectations regarding production from its Williston property. 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.
(Financial and Operational Tables Accompany this News Release)
The notes accompanying the financial statements are an integral part of
the consolidated financial statements and can be found in Kodiak's filing on
Form 10-Q for the period ended September 30, 2006.
<<
KODIAK OIL & GAS CORP
BALANCE SHEET
UNAUDITED AUDITED
September 30, December 31,
ASSETS 2006 2005
------ ------------- -------------
Current assets:
Cash and cash equivalents $ 21,432,860 $ 7,285,548
Accounts receivable
Trade 1,126,530 447,981
Accrued Sales 430,659 226,406
Prepaid expenses and other 138,092 30,631
------------- -------------
Total Current Assets 23,128,141 7,990,566
------------- -------------
Property and equipment (full cost method),
at cost:
Proved oil and gas properties 26,191,988 11,277,307
Unproved oil and gas properties 12,010,614 6,307,903
Less-accumulated depletion, depreciation
and amortization (1,443,314) (121,941)
------------- -------------
36,759,288 17,463,269
------------- -------------
Other property and equipment, net of
accumulated depreciation of $95,904 in
2006 and $47,525 in 2005 158,561 183,481
Restricted Investment 217,400 153,000
------------- -------------
Total Assets $ 60,263,390 $ 25,790,316
------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 2,103,383 $ 4,411,572
Noncurrent liabilities:
Asset retirement obligation 159,065 69,073
------------- -------------
Total Liabilities 2,262,448 4,480,645
------------- -------------
Commitments and Contingencies - Note 7
Stockholders' equity:
Common stock, $0.01 par value:
authorized - 100,000,000
Issued: 74,969,426 shares in 2006
and 54,547,158 in 2005 749,694 545,472
Additional paid in capital 64,483,787 26,593,826
Accumulated deficit (7,232,539) (5,829,627)
------------- -------------
Total Stockholders' Equity 58,000,942 21,309,671
------------- -------------
Total Liabilities and Stockholders' Equity $ 60,263,390 $ 25,790,316
------------- -------------
------------- -------------
KODIAK OIL & GAS CORP.
STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues:
Gas production $ 143,504 $ 65,315 $ 558,768 $ 78,860
Oil production 897,085 22,656 2,252,499 22,656
Interest 232,446 39,402 599,285 70,727
------------ ------------ ------------ ------------
Total revenue 1,273,035 127,373 3,410,552 172,243
------------ ------------ ------------ ------------
Cost and expenses:
Oil and gas
production 194,021 55,693 543,681 130,039
Depletion,
depreciation,
amortization
and abandonment
liability accretion 494,829 15,287 1,374,019 29,019
General and
administrative 980,100 289,791 3,270,534 891,263
Gain on currency
exchange (6,627) (181,146) (374,770) (9,868)
------------ ------------ ------------ ------------
Total costs and
expenses 1,662,323 179,625 4,813,464 1,040,453
------------ ------------ ------------ ------------
Net loss for the
period $ (389,288) $ (52,252) $(1,402,912) $ (868,210)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Basic & diluted
weighted-average
common shares
outstanding 74,939,654 44,825,221 69,706,082 42,825,894
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Basic & diluted
net loss per
common share $ (0.01) $ (0.00) $ (0.02) $ (0.02)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
KODIAK OIL & GAS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months
Ended September 30,
2006 2005
------------- -------------
Cash flows from operations
Net loss $ (1,402,912) $ (868,210)
Reconciliation of net loss to net cash
provided by operating activities:
Depletion, depreciation, amortization and
abandonment liability accretion 1,374,019 29,019
Stock based compensation 1,372,152 -
Changes in current assets and liabilities
Accounts receivable - Trade (678,549) (19,362)
Accounts receivable - Accrued Sales (204,253) (127,100)
Prepaid expenses and other (107,462) (599,462)
Accounts payable (728,440) 27,005
------------- -------------
Net cash used by operating activities (375,445) (1,558,110)
------------- -------------
Cash flows from investing activities
Oil and gas properties (22,111,417) (4,852,896)
Equipment (23,457) (76,512)
Restricted investment: designated
as restricted (53,800) -
Restricted investment: undesignated
as restricted (10,600) -
------------- -------------
Net cash used for investing activities (22,199,274) (4,929,408)
------------- -------------
Cash flows from financing activity
Proceeds from the issuance of shares 39,631,329 9,679,567
Issuance costs (2,909,298) (292,370)
------------- -------------
Net cash provided by financing activities 36,722,031 9,387,197
------------- -------------
Net change in cash and cash equivalents 14,147,312 2,899,679
Cash and cash equivalents at beginning
of the period 7,285,548 2,707,763
------------- -------------
Cash and cash equivalents at end of
the period $ 21,432,860 $ 5,607,442
------------- -------------
------------- -------------
Non-cash Items
Oil & Gas Property accrual included in
Accounts Payable $ 1,726,890 $ 325,570
------------- -------------
------------- -------------
Asset retirement obligation $ 85,725 $ -
------------- -------------
------------- -------------
Product Volumes and Prices
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Volume:
Gas (Mcf) 36,434 23,030 93,721 28,907
Oil (Bbls) 14,316 300 38,223 300
Price:
Gas (Mcf) $ 5.02 $ 5.43 $ 5.96 $ 7.14
Oil (Bbls) $ 62.66 $ 59.78 $ 58.93 $ 59.78
>>
%SEDAR: 00007900E
