Kodiak Inks LOI to Head Little Chicago Project in Canada
Kodiak Energy, Inc. has provided an update to the EL 413 or "Little Chicago" Project, located in the Northwest Territories of Canada.
Recently, a letter of intent was signed with the Corporation's partner in the Little Chicago Project that will allow Kodiak to acquire the balance of the working interest in EL 413, thus becoming 100% working interest owner after closing. This effectively doubles the net land position in the project to a total of 201,160 acres. This will substantially enhance Kodiak's ability to bring additional regional partners into the drilling project.
In parallel, Kodiak has been actively working with the beneficiaries of the two comprehensive land claims EL 413 is located on, the Gwich'in and the Sahtu, to obtain the access and benefit agreements which are required to move the project forward. These agreements are expected to be finalized in the near future. Part of those negotiations would include a post drilling earning into the property by the Gwich'in and Sahtu to become a working interest partner in the license when converted to a significant discovery license.
In addition, Kodiak has started the process to extend the EL 413 license. Kodiak has initiated discussions with regulators and believes the extension is possible. This will permit an expanded development plan to investigate additional targets identified in the seismic program.
The new management discussion for EL 413 will be posted on the Kodiak website Tuesday July 29, 2008. This will provide additional information related to the targets for the drilling program and the previously released prospective resource report.
Bill Tighe, President and CEO of Kodiak, stated, "These recently announced steps represents key milestones for the Company. The Lucy project brings the potential of near term production and/or a potential disposition candidate to finance other projects. The Brink acquisition which is expected to close in September, will provide cash flow and a large land base with proven and probable reserves. The addition of Brink acreage will increase Kodiak's undeveloped land base to an excess of 340,000 net acres. The additional working interest on EL 413 takes our total to in excess of 440,000 net acres.
"The planned exploration activities for EL 413 will allow Kodiak to validate the potential for us and our partners in a logical manner to the benefit of all stakeholders."
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