This seismic work also included the building of 2 km of ice bridges and 140 km of access ice roads to the worksite. Despite temperatures averaging between -35 to -55 degrees Celsius during critical stages, substantial equipment down time, the project is virtually complete without accidents or incidents, within the planned schedule and most importantly within budget parameters.
An independent evaluation of the Little Chicago Exploration license was completed by a qualified engineering analyst. This report based its evaluation of potential reserves in only one of the several structures observed on the property. This report stated up to 1 billion barrels oil and up to 2 tcf of gas in only one of the structures analyzed.
The new work completed by Kodiak on the 200,000 acres Mackenzie River block EL 413, potentially indicates, based on preliminary information received, that there may be present up to 1 billion barrels oil and potentially up to 4 TCF of natural gas, if all the identified zones are productive. These early estimates, will require confirmation via the processing of the seismic acquired in March 2007, the planned drilling programs for winter of 2008/2009.
The oil targets are interesting as they could provide early production while the Mackenzie Valley Pipeline moves through the regulatory process. The Mackenzie Valley Pipeline Group, headed by Imperial Oil Limited, Shell and ConocoPhillips - recently advised Kodiak that the pipeline would be routed through EL 413. This will substantially reduce development costs for the gas production.
Upon the completion of the 2007 seismic and the Thunder River acquisition, Kodiak's control or working interest will rise to 56.25% of the acreage. Upon completion of the drilling programs planned for 2008, Kodiak's working interest will increase via the farm in, to 78.12 % per test block for each well drilled. With a rolling option to earn the same amount for the whole block.
Kodiak Energy, Inc is a Calgary-based oil and gas company focused on creating a portfolio of North American assets that offer not only immediate production and cash flow but growth through exploration. The Company has lease holdings in Montana, South eastern Alberta, North eastern Alberta, an agreement to purchase mineral rights both in the Northwest Territories and Northeast New Mexico.
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