Kodiak Acquires Acreage in Wyoming and North Dakota

Kodiak Oil & Gas has acquired acreage in Sweetwater County, Wyoming and McKenzie County, North Dakota.

Kinney Rim Area Chicken Creek Prospect

The Company has acquired an additional 960 acres on its Chicken Creek Prospect located in Sweetwater County, Wyoming. The newly acquired leases are on federal lands and have a 10-year primary term. The acreage is northeast of the Company's Chicken Springs Unit. The Company also announces that it has entered into an exploration agreement on a 2,240-acre block within the prospect area with Nerd Gas Company, Casper, WY and McElvain Oil & Gas Limited Partnership, Denver, CO to jointly evaluate the potential of the Almond and Ericson sands at depths ranging to 9,500 feet. Kodiak has sold down its interest in the acreage block and has retained a 33.34% working interest in the prospect lands. The initial test well will be drilled during the third quarter of 2005.

Stateline Bakken Prospect

Kodiak Oil & Gas, Halador Petroleum Company, and three independents have acquired 2,093.26 acres in McKenzie County, North Dakota. The lands are located in Townships 147 and 148 North-Range 105 West in western McKenzie County, North Dakota near the Montana border. The newly acquired leases are also on federal lands and have a 10-year primary term. The Company has a 37.5% working interest in leases and will operate the property. The acreage is within the trend of the Middle Bakken horizontal oil play in Eastern Montana and Western North Dakota, one of the largest onshore oil fields found in recent years. There are currently 17 rigs running continuously to develop the field. To date over 120 wells have been drilled with no dry holes. Current production from the Field is in excess of 700,000 barrels of oil per month with cumulative Field production in excess of 10 million barrels.

Headington Oil Company L. P., Dallas, TX, has staked a drilling location immediately offsetting the acquired acreage. This well should be drilled during the first half of 2005. In addition, Headington has completed three additional wells approximately four miles northwest of the acreage block and is drilling a well five miles east of the acreage. Burlington Resources Oil & Gas Co L.P., Ft. Worth, TX, has announced plans to drill five horizontal exploratory tests in an area of southwestern McKenzie County, North Dakota, 8 to 10 miles east and southeast of the acreage block. Burlington has applied to the North Dakota Industrial Commission for orders establishing the five 640-acre drilling units for horizontal wells with one or more laterals.

"We are very excited about our recent acquisitions in Wyoming and North Dakota," said Kodiak President Lynn Peterson. "The Wyoming acreage allows the Company the ability to move its Chicken Creek Prospect forward to a drillable stage. Entering into an agreement with two well established companies like Nerd and McElvain provides the Company a great deal of additional expertise in the evaluation, drilling and completion of tight gas sands. Our initial acquisition in the horizontal Bakken play in Montana and North Dakota provides the Company an additional play that has the potential to have a very significant impact on our future. Results from drilling the middle Bakken have been quite impressive and we look forward to drilling a well as soon as a rig becomes available."