According to the company, the preliminary data continue to be supportive of the work done to date, with additional potential structures seen.
Kodiak continues to prepare for a 2008 Winter Drilling Program to evaluate the potential of EL 413. Current plans include a three-well drilling program during the late 2007, early 2008 winter season.
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 there could be up to 1 billion barrels oil and up to 2 tcf of gas in one of the structures analyzed.
The work on the 200,000-acre Mackenzie River block EL 413, potentially based on preliminary info received, may contain 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 and 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, 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, Southeastern Alberta, Northeastern Alberta, and an agreement to purchase mineral rights both in the Northwest Territories and Northeast New Mexico.
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