Kodiak Energy Begins Drilling Program on Lucy Property

Kodiak Energy has confirmed that drilling commenced on December 30, 2007 on its Lucy Property and good progress continues toward an expected drill To Depth date of approximately January 20/2008.

Kodiak is the operator of the drilling project with a net working interest of 57%. Upon realization of successful drilling results, management believes that the well can be tied in and generating cash flow by end of Q2 2008.

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