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Kodiak Oil & Gas (KOG) Issues Update on Recent Drilling Activity

February 7, 2012 4:02 PM EST
Kodiak Oil & Gas Corp. (NYSE: KOG) provided an interim corporate update on recent drilling and completion activities.

Interim Drilling and Completion Operations UpdateIn conjunction with closing its latest acquisition in January 2012, the Company assumed its sixth operated rig. All of Kodiak’s operated drilling rigs are presently drilling ahead on wells in North Dakota, with one rig in Dunn County, two rigs in southern Williams County and three rigs in McKenzie County. Furthermore, the Company has an approximate 50% working interest in lands being drilled by two non-operated drilling rigs as part of its Dunn County Area of Mutual Interest (AMI).

The Company has entered into a contract for a seventh operated rig, a new build rig, which is scheduled for second quarter 2012 delivery. As the year progresses, Kodiak plans to operate one to three rigs in Dunn County, two to three rigs in McKenzie County and three to four rigs in Williams County. The 2012 to 2013 drilling program is designed so that Kodiak is positioned to have nearly all of its acreage held by production by mid-2013, eliminating leasehold expiry across much of its 155,000 net acre position in the Williston Basin.

Between the Company’s operations update in mid-October 2011 and January 2012, Kodiak completed eight gross (4.7 net) operated wells. In addition to its operated wells, the Company participated in the completion of four gross (1.9 net) non-operated wells under its Dunn County AMI. Initial production results from the wells, where available, are included in the table below.

Kodiak currently has 13 gross (11.0 net) operated wells that have been drilled and are being completed or waiting to commence completion operations. Three of these wells are on multi-well pads where all of the drilling has not been completed. Drilling activity by the AMI partner continues with two gross (1.0 net) wells drilled and waiting on completion. Non-operated drilling and completion activities within the AMI are expected to continue throughout 2012.


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