Kodiak Receives Bakken Play Environmental Assessment Approval
Kodiak Oil & Gas Corp. has received a Finding of No Significant Impact (FONSI) and the necessary approval of the environmental assessment (EA) with respect to the Tall Bear #16-15H well on the Fort Berthold Reservation in Dunn County, N.D. The EA approval is a key step in the drilling permit process which is moving forward after today's EA approval. While this permit is being processed, Kodiak is preparing to submit additional drilling permits for additional wellsites in the near future. The Tall Bear #16-15H is a horizontal well targeting oil potential in the Bakken shale and is being permitted to a proposed total depth of 15,600 feet. The Company expects to spud the well as soon possible following the necessary permitting.
Kodiak also announced that it has entered into a long-term contract for a new-build rig from a large land-drilling contractor. The rig is designed to Kodiak specifications to optimally drill horizontal Bakken shale wells and other Williston Basin formations. Kodiak expects the rig to be delivered in 90 to 120 days and it will be used exclusively for its Williston Basin operations, including Red River and Mission Canyon prospects. In order to expedite its Bakken drilling operations, the Company is actively seeking a one-well window for a sub-contracted rig from a drilling contractor or operator in the area.
Commenting on the Bakken play developments, Lynn Peterson, Kodiak's President and CEO said: "We have devoted considerable time and effort to ensure the EA and permitting process on the Fort Berthold Reservation is structured with meticulous attention to detail. Our work with the Bureau of Indian Affairs and the Bureau of Land Management to create a standardized template for permitting and environmental assessment is an important step for our future plans. We believe our leasehold is prospective for development drilling in the prolific Bakken shale oil trend. In order to best develop our lands, it is important to have best-practice regulatory and permitting processing in place and agreed upon by industry and the regulatory agencies involved."
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