Kodiak to Close Deal for Utah Heavy Oil Project
Kodiak Energy has reserved the issuance of 800,000 common shares at a share price of $2.50 per share to satisfy the $2 million share component of the $4 million transaction with Flair Petroleum Inc. The transaction is expected to close in the near term.
The Uinta Basin Heavy Oil Project leases are estimated to contain a drill proven heavy oil sands reserve of 100 million barrels and a probable heavy oil sands reserve of 700 million barrels.
The gravity of Utah heavy oil ranges from 8 degrees to 14 degrees API, which is comparable to that of the Athabasca Oil Sands of Alberta. Recent improvements in handling and refining of heavy oil are expanding its marketability. Specifically, the Utah heavy oil has an important quality advantage with a sulphur content of only 0.4% to 0.7%, compared to 4.8% for Athabasca Heavy Oil, that make it easier to upgrade and to market.
Kodiak Energy, Inc is a Calgary-based Oil and Gas Company focused on creating a portfolio of domestic low risk High Impact assets that offer immediate production and cash flow. The Company's lease holdings in Montana offer the potential for at least 210 drilling targets and two leases in South Eastern Alberta, which drilling programs have started offer the potential of another 150 drilling locations.
With the Utah assets, Kodiak has 362 to 572 low cost drilling opportunities that will drive production and reserve growth for the years to come. Once fully developed, Kodiak could unlock more then 528 Bcfe in potential reserves plus 172 million barrels of original oil in place in Utah.
- Kodiak Energy, Subsidiary Appoint VP Finance and CFO (Nov 05)
- Kodiak Energy's Subsidiary Snaps Up Additional Assets (Aug 11)
- Kodiak Energy's Subsidiary Collects Assets from Private Co (Jul 20)
Company: Flair Petroleum more info
- Flair Petroleum to Acquire 20% Stake in California Heavy Oil Project (Oct 01)
- Flair Completes Utah Tar Sands Acquisition (Dec 18)
- Flair Petroleum Acquires Stake in Utah Heavy Oil Leases (Sep 28)