Kodiak Energy has signed a farm in agreement to earn up to a 34.5% working interest on the 200,000 acre Little Chicago Exploration license adjacent to the Mackenzie River and centered along the planned Mackenzie Valley Pipeline.
An independent evaluation of the Little Chicago Exploration license was recently completed by a qualified engineering analyst. This report bases its evaluation of potential reserves in only one of the several seismic structures observed on the property. The report compares the potential of this feature to the Keg River B pool at Rainbow Lake Alberta and concludes a "best estimate" of 107 MMBOE of potential reserves.
The 200,000 acre Mackenzie Delta block is believed to potentially contain up to 1 billion barrels/oil and in excess of 600 bcf of natural gas.
Kodiak Petroleum ULC will be the initial Operator under the joint operating procedure and will spend five million dollars ($5,000,000.00) prior to June 30, 2007, to acquire 2D seismic data on the Farmout Lands, thus earning 12.5% working interest in the properties. Kodiak will drill two test wells on the Farmout Lands to earn an undivided 50% of the balance of the Farmor's 40,000 acre test well blocks. The Company will have a continuing option to drill additional Option Well(s) on the remaining unearned "20,000 acre test well block(s)".
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