Press release from PR Newswire
Kodiak Oil & Gas Corp. Provides Interim Corporate Update
Monday, June 04, 2012
Kodiak Oil & Gas Corp. Provides Interim Corporate Update08:00 EDT Monday, June 04, 2012- Q212 Completion Activity Advances with Five New High-working Interest ProducersDENVER, June 4, 2012 /PRNewswire/ -- Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today provided an interim corporate update on recent drilling and completion activities. Interim Drilling and Completion Operations UpdateOperated WellsIn the Koala project area in northern McKenzie County, N.D., Kodiak recently completed three high-working-interest wells in the Middle Bakken Formation, the Koala 15-31-30-3H well [97% working interest (WI) / 78% net revenue interest (NRI)], the Koala 15-31-30-2H well (97% WI/78% NRI), and the Koala 2-25-36-15H well (94% WI/75% NRI). The wells had 24-hour initial production rates of 3,117, 2,971 and 2,709 barrels of oil equivalent respectively, as noted in more detail in the table below. Importantly, the Koala 2-25-36-15H well was a successful remediation of a previously announced completion failure experienced during fourth quarter 2011. In the Dunn County project area, fracture stimulation procedures were recently completed on two wells in the Skunk Creek area. These wells, the SC 13-18-17-9H and the SC 13-18-17-16H, were completed in the Middle Bakken Formation, and Kodiak expects to place these wells on production in the coming days. Kodiak owns a 100% WI and an 82% NRI in each of these two wells. Completion operations have commenced on a four-well pad in the Smokey project area in central McKenzie County, N.D., where Kodiak owns a 96% WI and a 76% NRI in each of the wells. A second completion crew has mobilized and will be commencing completion procedures on a two-well pad in the Polar project area in southern Williams County, N.D. where Kodiak owns 69% WI and 54% NRI. Non-Operated Dunn County, N.D.Activity continues within the Company's Dunn County AMI where Kodiak participated in the completion of four gross (1.67 net) wells during the second quarter through May 31, 2012. Initial production results from the wells, where available, are included in the table below. The following table sets forth information relating to the Company's recent operated and Dunn County non-operated completion activity in the Williston Basin: Recent Operated Well Completions WI/Length of IP 24-hour Test (BOE/d)ChokeAvg. ProductionWell NameCountyNRI (%)FormationLateral BOPD MMcfe/dBOE/dSize "PSIBOE/dDaysKoala 15-31-30-3H McKenzie97 / 78Bakken9,6292,5793.233,11742/641,7001,8277Koala 15-31-30-2H McKenzie97 / 78Bakken9,4602,3413.782,97142/641,3001,4447Koala 2-25-36-15H*McKenzie94 / 75Bakken9,1772,1993.062,70938/641,5501,2137SC-13-18-17-9HDunn100 / 82Bakken9,697 Well is flowing back SC-13-18-17-16HDunn100 / 82Bakken9,421 Well is flowing back *Indicates remediated well with successful liner patch Recent Dunn County Non-Operated Well Completions FBIR Guy Blackhawk 24X-27**Dunn50 / 41Bakken9,2202,1401.452,382FBIR Goes Everywhere 31X-11Dunn50 / 41Bakken9,350Well on Confidential StatusFBIR Grinnell 41X-1Dunn31 / 26Bakken10,160Well on Confidential StatusFBIR Lawrence 24X-26Dunn48 / 39Bakken9,520Well on Confidential StatusFBIR Youngbear 31X-9Dunn38 / 31Bakken9,175Well on Confidential Status**Well completed in Q112 and is no longer confidentialSeventh Operated Drilling RigThe Company has taken delivery of its seventh operated drilling rig, which is being mobilized to the Smokey project area in McKenzie County where it will commence drilling a four-well pad. Management CommentCommenting on ongoing operations, Kodiak's Chairman and CEO Lynn A. Peterson said: "We are making steady operational progress through the second quarter. We continue to drill and complete high working interest wells in the core of our acreage position with very good production rates. We are very pleased with the successful remediation of one of our wells with previously announced liner issues. The liner repair and resultant completion is clearly a positive development, and we look to remediate other damaged wells as we move through the remaining quarters of 2012. Our second quarter completion schedule remains on track, with six gross (5.22 net) wells remaining to be completed."About Kodiak Oil & Gas Corp.Denver-based Kodiak Oil & Gas Corp. is an independent energy exploration and development company focused on exploring, developing and producing oil and natural gas primarily in the Williston Basin in the U.S. Rocky Mountains. For further information, please visit www.kodiakog.com. The Company's common shares are listed for trading on the New York Stock Exchange under the symbol: "KOG."Forward-Looking StatementsThis 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. Forward-looking statements in this document include statements regarding the Company's expectations as to Kodiak's exploration, development , well completion, production and drilling plans, including the timing of drilling commencement and drilling completion of our wells, production estimates, and expectations regarding our ability to execute our 2012 program. 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 Kodiak's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.For further information, please contact: Mr. Lynn A. Peterson, CEO and President, Kodiak Oil & Gas Corp. +1-303-592-8075Mr. David P. Charles, Sierra Partners LLC +1-303-757-2510 x11 SOURCE Kodiak Oil & Gas Corp.