KODIAK ENERGY, INC.: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

21 July 2009drilling progress report▲ GoodMajor

Kodiak announced on July 20, 2009 that its majority-owned subsidiary Cougar Energy has reached an agreement in principle with an unnamed private company to buy 11 producing wells, 21 workover or recompletion candidates, and water disposal facilities and pipelines in the Trout field, in and next to the CREEnergy project. Current gross production is about 170 barrels of oil per day, versus up to an estimated 2,450 barrels per day previously. No price is given. This is the first producing oil property for the group described in the filings so far, and it builds on the CREEnergy joint venture.

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12 Mar 2008drilling progress report▲ Good

Three project updates: the 2008 45 km 2D seismic program on the Northwest Territories EL 413 (Little Chicago) is complete and in processing, with results expected in 6 to 8 weeks; first lab results on the Lucy project in British Columbia (80% working interest, about 3 sections) showed average organic content of 3.68%; and the Sofia #2 well in New Mexico reached total depth on March 11, 2008 and found CO2 in three formations, with Sofia #1 to spud next. Kodiak is stated to hold 56.25% of Little Chicago. The filing's resource figures are management's estimates, not reserves, and the 20 BCF per section is a management baseline. Lucy is a new project not in the earlier context, and the CO2 find is a gas the company is evaluating as a project, with no oil or gas production reported.

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26 Feb 2008drilling progress report▲ Good

Kodiak said on February 25, 2008 that it has all permits and licences for its New Mexico drilling program, and expects the first well to spud by March 1, 2008. The press release describes a 3 to 4 well program at about $320,000 per well, with Kodiak as operator and 100% working interest owner of about 62,000 acres plus letters of intent for another 22,000 acres, and a 38-mile seismic program due to start within 20 days. This builds on the New Mexico rights bought from Thunder River in 2007. Note the press release now shows a TSX Venture listing (CDNX:KDK.V), so the December 2007 listing deadline appears to have been met (inference).

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