Kodiak Oil & Gas Corp. (NYSE: KOG) provided an interim corporate update on recent drilling and completion activities.
In the Koala project area in McKenzie county, N.D., Kodiak recently completed three wells in which it owns a 98% working interest and 79% net revenue interest. Two wells were completed in the Three Forks formation, the Koala #14-32-29-2H3 well and the Koala #14-32-29-4H3 well, and one in the Middle Bakken formation, the Koala #14-32-29-3H well. The wells had 24-hour initial production rates of 2,528, 3,124 and 3,035 BOE/d, respectively.
In the Polar project area in southern Williams county, N.D., fracture stimulation procedures were successfully completed on three wells, two in the Middle Bakken formation and the other in the Three Forks formation; the P Alice #154-99-4-3-27-4H and the P Alice #154-99-4-3-27-4H3 had 24-hour initial production rates of 3,213 BOE/d and 2,895 BOE/d, respectively. Kodiak owns a 57% working interest and a 46% net working interest in each of these two wells. The P Jorgenson #154-98-5-14-23-16H well, in which the company owns a 92% working interest and a 74% net working interest, recorded a 24-hour initial production rate of 3,666 BOE/d.
In Dunn County, N.D., the company successfully remediated two additional wells that incurred mechanical issues in late 2011. The SC #2-24-25-16H well was fracture stimulated and is currently on flow back. The SC #2-8-17-15H is currently being fracture stimulated.
Kodiak intends to commence completion operations with a second crew in early October 2012, which is expected to be utilized through year end. The company anticipates having the ability to complete five to six gross wells per-month, per-crew. Nearly all of the wells to be completed are located on two, three and four well pads allowing for maximization of completion efficiencies.