Kodiak Oil & Gas Begins Drilling on Masterson Prospect

Kodiak Oil & Gas has commenced drilling operations on the Masterson Federal No. 24-11 well in Sweetwater County, Wyoming. The well will be drilled by True Drilling Rig No. 4 to a total depth of 7,200 feet to test the Lower Muddy sand.

The well is a half mile step out from the Prenalta Govt 43-24-20-102 well drilled in 1970. The well penetrated 18 feet of Lower Muddy channel sandstone and was completed with an initial potential of 5,534 thousand cubic feet gas per day (MCFGPD) and produced 577,000 MCFG before being shut-in during March 1992 while still producing 250 MCFGPD. The shallower Second Frontier and Blair sands are secondary objectives. The Gov't Vula O'Connell B well, located approximately one mile southeast, produced 940,000 MCFG from the Blair sands before being plugged in 1997.

Kodiak's Masterson well should take approximately 7-10 days to reach total depth. Kodiak has a 40% working interest in the initial test well and 2,954 acres with an option to earn under an additional 960 acres within the Prospect area. Fancher Resources LLC, Denver, Colorado, is operating the well.