Kodiak Energy Increases Working Interest in Lucy Property

Kodiak Energy, Inc. has increased its working interest in the Lucy property to 80%.

These lands comprise 1920 gross acres and are highly prospective for the emerging Muskwa and Evie shale gas play, which is attracting major industry interest and is strongly supported by the British Columbia Government with attractive royalties.

Kodiak recently drilled and cased a well on this property. During the drilling, the well encountered several zones of interest and Kodiak elected to case the well. Testing will be required to evaluate the commercial viability of the property. The Muskwa formation had elevated gas readings and logs indicated a pay zone of up to 60 meters. Kodiak will seek approval for a continuation to the lease based on these results.

Recent Crown land sales for shale gas mineral rights, adjacent to this acreage, have aggregated more than C$325 million, with certain individual bids exceeding $ 2,000 per hectare.

Last week, a major international oil/gas company said it will re-enter the natural-gas business in Western Canada with a $1-billion unconventional gas play in British Columbia. A US based major has also revealed that it spent $224-million in December buying up land in British Columbia.