"With this approval in place we have set a target date of late April/early May to begin production at our nine existing wells in Wyoming," Kodiak President Lynn Peterson said. "Initially, gas will be vented, and by July gas should be flowing into sales lines and to markets."
Mr. Peterson also stated that 17 wellsite locations are currently being surveyed and permitted along with one water disposal facility. The Company plans to begin an initial 15-17 well development drilling program in August with the expectation to drill approximately 30 total wells during 2004. "With the proceeds from the February 2004 private placement the Company is in position to fund its share of the drilling," Mr. Peterson stated.
At Kodiak's Chicken Springs Project, archeological work has also been completed. The Company is waiting on approval of the application to drill from the Bureau of Land Management. It is anticipated that the Company will drill the initial exploratory test within the next 120 days and core the well for evaluation. The development program calls for 10 development wells to commence drilling by September, subject to results of the test well.
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