Kodiak Energy's Private Subsidiary Expands O&G Development

Kodiak Energy, Inc.

Kodiak Energy announced that its private subsidiary, Cougar Energy, Inc. ("Cougar"), has negotiated a standard farm-in agreement with a private company for 100% of approximately 28 gross sections (17,920 acres) of mineral rights located in the immediate vicinity to the CREEnergy project.

This transaction is a strategic step for Cougar to expand the oil and gas development related to the CREEnergy project and the benefit derived from the existing infrastructure.

Mr. Bill Tighe, CEO of Cougar, stated, "We are excited by the opportunity this farmin agreement brings to Cougar and the CREEnergy project. With these lands being in the immediate area to the CREEnergy Project, this enables Cougar to have a concentrated development approach to the project. This approach allows for reduced overall development costs and increases the potential reserves base in the area. The controlled royalty rates and close proximity to 2 natural gas sales pipelines within the farmin lands further enhances the economics for the project, even at depressed natural gas prices."