Initial Production Data Provided on Next Two Middle Bakken Producers; Wells IP at 1,856 BOE/d and 811 BOE/d on 24-hour Production Tests
DENVER, June 24 /PRNewswire-FirstCall/ -- Kodiak Oil & Gas Corp. (NYSE Amex: KOG), an oil and gas exploration and production company with assets in the Williston Basin of North Dakota and Montana and in the Green River Basin of southwest Wyoming and Colorado, today provided an interim update on its Williston Basin drilling and completion activities.
Williston Basin -- Dunn County, North Dakota
On the Company's core Fort Berthold Indian Reservation (FBIR) leasehold in Dunn County, N.D., Kodiak targets oil and gas production from the middle member between the upper and lower Bakken shales, which are the source for existing hydrocarbons. The Three Forks / Sanish Formation, a commercially productive interval lying directly below the lower Bakken shale, is also expected to be a future exploration target.
In early May 2009, Kodiak announced that it had successfully completed its first two producing oil wells in the middle Bakken Formation on the FBIR. Since then, the Company has reached total depth on one additional well, is currently drilling the horizontal leg of its sixth well, and has successfully completed two more wells as middle Bakken producers. As of June 24, 2009, Kodiak had four producing wells, one well awaiting completion and is drilling ahead on the Two Shields Butte (TSB) #14-33-28H.
New Producers Continue to Confirm Geologic Model
The TSB #16-8-7H well (Kodiak operates with 37.5% working interest (WI), before payout (36% WI after payout) and 30% NRI, before payout (29.5% NRI after payout)) reached total depth in April 2009. The well, located in the northwestern portion of Kodiak's FBIR leasehold, was drilled to an approximate total vertical depth (TVD) of 10,350 feet and a total measured depth (TMD) of 19,743 feet, with an 8,995 foot lateral in the middle Bakken.
Fracture stimulation procedures were completed on the TSB #16-8-7H well in early June 2009. The well was completed utilizing a combination of sliding sleeves and plug and perforation completion techniques with a 15-stage fracture stimulation design in the well bore's 8,995 foot horizontal lateral section. The well flowed back oil and frac fluid up 4 1/2' frac string to the tank batteries. Initial 24-hour production rates were 1,626 barrels of oil per day (BOPD) and 1.38 million cubic feet of natural gas per day (MMcf/d), or 1,856 barrels of oil equivalent per day (BOE/d). Production was curtailed due to surface facility constraints. During the first seven days of flow-back, the well produced 8,654 barrels of oil (BO) and 9,145 barrels of frac fluid. Prior to being shut-in, the well was producing 46 BO and 30 barrels of frac fluid per-hour on a 20/64 inch choke with an average pressure of 1,875 psi. The well was shut-in during completion of the TSB #16-8-16H well and will be put back onto production later this month.
The TSB #16-8-16H well (Kodiak operates with 50% WI and 41% NRI) reached total depth in March 2009. The well, located on the same drilling pad as the TSB #16-8-7H well, was drilled on 320-acre spacing to an approximate TVD of 10,350 feet and a TMD of 15,760 feet, with a 4,465 foot lateral in the middle Bakken.
Fracture stimulation procedures commenced on the TSB #16-8-16H well in mid-June 2009. The well was completed utilizing plug and perforation completion techniques with a five-stage fracture stimulation design in the well bore's 4,465 foot horizontal lateral section. The well is currently flowing back oil and frac fluid up 4 1/2' frac string to the tank batteries. Initial 24-hour production rates were 711BOPD and 604 Mcf/d of natural gas, or 811 BOE/d.
Drilling Operations - Two Shields Butte
The TSB #14-33-6H well (Kodiak operates with 50% WI and 41% NRI) reached total depth in June 2009. The well is located roughly in the middle of the Company's FBIR acreage block and was drilled to an approximate TVD of 10,560 feet and 15,919 TMD with a 4,163 foot lateral on a 320-acre drilling block. The well successfully reached TMD and had the liner in the hole in 26 days. Completion operations are expected to commence in the middle of the third quarter 2009.
Upon reaching total depth and running liner on the TSB #14-33-6H, Kodiak skidded the rig approximately 50 feet and spud the TSB #14-33-28H (Kodiak operates with 50% WI and 41% NRI) well off of the same drilling pad.
