Kodiak Energy Inc., Calgary, (Toronto Venture: KDK), operating in British Columbia as Kodiak Bear Energy Inc., has received approval from the British Columbia Oil and Gas Commission to test the Muskwa shale gas potential on its leases.
            

The company reports it and its partners are moving forward with the planned work program to be executed during the 2008-09 winter season. The well drilled in January will be stimulated using a staged vertical fracture and then flow tested to evaluate its post fracture deliverability.
            

This test and development 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, the company reports.
            

The second phase program consists of a horizontal leg off one of the previously drilled vertical wells. This is coupled with a staged fracture program and flow test to evaluate the post fracture deliverability with a tie in.
            

Kodiak is the operator and 80% working interest owner of B.C. Petroleum Natural Gas Lease 44104. This lease is situated on the southern edge of the Horn River Basin and the Muskwa shale gas prospect.
            

Kodiak has lease holdings in Montana, southeastern Alberta, northeastern Alberta and high impact prospects in the central Mackenzie River Valley of the Northwest Territories, Canada and in northeastern New Mexico as well as a proposed acquisition of Brink Energy via plan of arrangement for properties in southwestern Manitoba. JAS