Kodiak Oil & Gas Corp., Denver, (Amex: KOG) will continue to add to its Bakken shale leasehold on the Fort Berthold Native American Reservation. The company now has about 54,000 gross acres (38,000 net), according to chief executive Lynn Peterson.

"During the year we re-evaluated our exploration strategy in the Bakken shale play. Based, in part, on the announced drilling and production results of other operators in the immediate area of our Bakken shale acreage in the west central North Dakota counties of Mountrail, Dunn and McKenzie, we revised our capital expenditure budget,” Peterson says. “As we continued to evaluate the Bakken play, we revised our strategy and now intend to continue acquiring acreage, while maintaining a high working interest."

Peterson says that construction of the drill site for Kodiak’s initial Bakken well on the reservation, the Tall Bear No. 16-15H well has been completed. The well will be horizontal well targeting oil potential in the Bakken and has been permitted to 15,600 feet.

The well is expected to spud upon delivery of a new-build drilling rig which is scheduled for September delivery. Drilling pipe has also been secured for this well and six additional horizontal wells. Peterson says the company recently received approval on two additional drilling permits in addition to Tall Bear No. 16-15H. Surveying and the scoping period has been completed on two other drill pads. JAS