Sunday, November 6, 2011

Bakken Shale - Kodiak Oil & Gas (KOG)

November 6, 2011 - Kodiak Oil & Gas (KOG) recently gave an update on the Bakken Shale and Three Forks Play. Kodiak Oil & Gas (KOG) is one of the up and coming exploration companies in the Bakken Shale due to their aggressive mineral rights leasing binge.

Kodiak’s five operated drilling rigs are presently drilling ahead on multi-well drilling pads. Three rigs are drilling in McKenzie County, and two rigs are drilling in Dunn County.

For the remainder of the fourth quarter 2011, Kodiak expects to complete or commence completion operations on an additional nine gross (6.1 net) operated wells, including two gross (0.8 net) wells from the recent acquisition. These operated wells are located on four drilling pads consisting of three, two-well pads and one, three-well pad. Drilling has been completed and operations are underway to construct surface equipment and pipelines on each of the pads. Currently, two gross (0.8 net) wells have been completed and are in flow-back operations. The remaining seven gross (6.6 net) wells are expected to commence completion operations during the remainder of the fourth quarter.

“We continue to make excellent wells in both Dunn and McKenzie Counties, which are integral to our production and cash flow growth trajectory we intend to provide our shareholders. One particularly positive development is the continued strong production profile from our first Three Forks well located in the McKenzie County Koala Project area. As shown above through the first 90 days of production, the well averaged nearly 1,000 BOE/d and is mirroring the offsetting Bakken well drilled just 700 feet away. With additional Three Forks production data, we can provide more accurate estimated ultimate recoveries for the Three Forks in the Koala area. We will also closely monitor the production profile from our two recent Dunn County Three Forks completions which have generated encouraging results.