Kodiak Drills to Depth on Lucy, Tests for Gas

Kodiak Energy, Inc. reported that the Lucy well was drilled and cased to depth on January 27, 2008.

During the drilling of the well several zones of interest were encountered and Kodiak elected to case the well. Testing will be required to demonstrate commercial volumes of gas. Of interest is the Muskwa formation which had elevated gas readings and the logs indicated a pay zone thickness of up to 60m.

The Muskwa formation is the major exploration focus recently in the area by both major and junior E&P companies. Kodiak will advise as testing programs are developed to evaluate this formation.