Kodiak Energy, Inc.-"Lucy" Horn River Basin Project Update
October 14 2008 - 10:00AM
Marketwired
Kodiak Energy, Inc. (TSX VENTURE: KDK)(OTCBB: KDKN) ("Kodiak" or
the "Corporation"), operating in British Columbia ("B.C.") as
Kodiak Bear Energy, Inc., announces that a partner meeting was
recently held at Kodiak's office and the budget was approved for
the first completion operations of the Corporation's "Lucy" Horn
River Basin shale gas program.
The approved budget will enable Kodiak to stimulate the
Muskwa/Evie shales in the a-79-A/94-P-4 vertical wellbore, which
was cased in Q1 2008. The completion equipment is being sourced
with plans to complete the vertical shale gas well in Q4 2008. The
shale gas stimulation is based on previous regional industry
practices and will be a slick water fracture. Production and
reservoir testing, which will include a multi-point flow and build
up test, will be completed immediately after the stimulation.
In early October 2008, a Kodiak construction supervisor scouted
the Lucy project area to evaluate the current access and lease
conditions and confirmed the construction operations will begin in
November 2008 once the ground is frozen.
The pipeline tie-in for this wellbore was previously scoped out.
Based on a successful well stimulation, Kodiak believes the well
can be tied in for production by the end of the 2008/09 winter work
season. This vertical completion program could be one of the first
Horn River Basin projects in this area to be put on commercial
production and would begin to validate the overall reserves in the
area. Based on the success of this work program and the overall
timing, Kodiak and partners will review the balance of the work
program to determine what portions of the second phase can be
advanced.
The second phase of the work program consists of drilling an
approximate 800 to 1,000 meter (2,424 to 3,280 feet) horizontal leg
in the Evie formation, starting from one of the previously drilled
vertical wells on the mineral lease. The horizontal wellbore
completion will include a large staged shale gas fracture
stimulation program and a flow and buildup test to evaluate the
post fracture deliverability. The pipeline tie-in for the
horizontal well was previously scoped out.
Kodiak is the operator and 80% working interest owner of B.C.
PNG (Petroleum Natural Gas) Lease 44104. This lease is situated on
the South East edge of the Horn River Basin and the Muskwa shale
gas prospect. The oil and gas industry continues to show
dramatically increased interest in this shale gas play. Several
comparisons have been made that the Muskwa shale gas potential is
an analogue of the Barnett shale gas fields currently being
developed in Texas. The Government of British Columbia recently
released land sales proceeds for 2008 to be in excess of CDN$2
Billion, which is a record high for the province, with the majority
of the sale results coming from shale gas prospects. The September
B.C. crown land sale had several parcels of mineral rights in the
Horn River Basin leased for prices in excess of CDN$12,000 per
hectare.
The Lucy property has the potential to yield short term cash
flow or become one of Kodiak's major capital divestiture
opportunities. If divested, the proceeds will assist in the funding
of other developments.
About Kodiak
Kodiak Energy, Inc. is a Calgary, Alberta, Canada based publicly
traded oil and gas exploration and development company focused on
creating a portfolio of North American assets that offer production
opportunities and asset growth through exploration. Kodiak has
lease holdings in Montana, southeastern Alberta, northeastern
Alberta and high impact prospects located in the central Mackenzie
River Valley of the Northwest Territories, Canada and in
northeastern New Mexico.
This press release contains forward-looking statements. The
words or phrases "would be," "will" "intends to," "will likely
result," "are expected to," "will continue," "is anticipated,"
"estimate," or similar expressions are intended to identify
"forward-looking statements". Actual results could differ
materially from those projected in the Corporation's proposed oil
and gas related business. The Corporation's business is subject to
various risks, which are discussed in the Corporation's filings
with the U.S. Securities and Exchange Commission and with Canadian
securities commissions. The Corporation's filings may be accessed
at www.sec.gov or at www.sedar.com.
Statements made herein are as of the date of this press release
and should not be relied upon as of any subsequent date. The
Corporation cautions readers not to place reliance on such
statements. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update
any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date
of such a statement.
Further information relating to Kodiak may be found on
www.sedar.com and www.sec.gov under the Corporation's profile, as
well as on Kodiak's website at www.kodiakpetroleum.com.
The TSX Venture Exchange has not reviewed this news release and
does not accept responsibility for the adequacy or accuracy of this
release.
Contacts: Kodiak Energy, Inc. William Tighe Chief Executive
Officer & President (403) 262-8044 Email:
info@kodiakpetroleum.com Website: www.kodiakpetroleum.com
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