NEB Grants Kodiak Permit for Little Chicago Seismic

Canada's National Energy Board (NEB) has issued Kodiak Energy, Inc. the seismic permit for its Little Chicago Seismic Program EL 413. The actual 85-km program begins Thursday.

Kodiak has been successful in obtaining the required permits for the seismic program in a short period of time. This includes the Joint Management Agreements, Access and Benefits agreements with the Aboriginal Peoples in the area. To obtain these agreements an Environmental Protection plan, Traditional Knowledge studies and extensive community consultations were required. These agreements, studies and consultations became the basis for land and water permits from the Mackenzie Valley Land and Water Board and the seismic permit from the NEB.

Kodiak negotiated contracts with local service providers on commercial terms, and the work started in late January 2007. This included the building of ice bridges and access roads to the worksite. So far 140 km of ice road has been cleared, the ice bridge over the Mackenzie River completed and the 85 km Seismic program will start on February 22, 2007. It is expected that the seismic program will be completed by March 15, and equipment and personnel returned to origin and all accesses reclaimed.

Upon completion of the Seismic Program Kodiak will have earned a 12.5% working interest in the 200,000 acres of Exploration License 413. Upon the completion of the Thunder River acquisition, Kodiak's working interest will rise to 56.5% of the acreage.

An independent evaluation of the Little Chicago Exploration license was completed by a qualified engineering analyst. This report bases its evaluation of potential reserves in only one of the several seismic structures observed on the property. The report compares the potential of this feature to the Keg River B pool at Rainbow Lake Alberta and concludes a "best estimate" of 107 MMBOE of potential reserves. The 200,000 acre Mackenzie River block is believed to potentially contain up to 1 billion barrels/oil and in excess of 600 bcf of natural gas.

Kodiak Energy, Inc is a Calgary based oil and gas company focused on creating a portfolio of North American assets that offer not only immediate production and cash flow but growth through exploration. The Company has lease holdings in Montana, South Eastern Alberta, North Eastern Alberta, an agreement to purchase mineral rights both in the North West Territories and New Mexico.