Kodiak Oil & Gas Corp. (KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, announced preliminary unaudited financial and operational results for the second quarter ended June 30, 2012.

For the second quarter 2012, Kodiak reported average sales volumes of 12,696 barrels of oil equivalent per day (BOE/d). This represents a 385% increase over sales volumes of 2,618 BOE/d for the second quarter 2011 and a 20% increase over first quarter 2012 sales volumes of 10,578 BOE/d. Crude oil accounted for 90% of second quarter 2012 sales volumes.

During the three and six month periods ended June 30, 2012, the Company completed 14 gross (12.65 net) operated wells and 26 gross (20.7 net) operated wells, respectively. Included in the completions are four gross (3.5 net) remediated wells. Two of the remediated wells were drilled by the Company in the fourth quarter of 2011 and two wells were assumed through previously announced acquisitions.

Commenting on second quarter sales volumes, Kodiak's Chairman and CEO Lynn Peterson said: "Our record second quarter sales volumes benefitted from well completions in our core leasehold areas, in combination with the high working interests in the wells. During May, our completion work gained momentum and continued that trend into June. While crude oil is our principal cash flow driver, each quarter we continue to increase natural gas volumes that are being sold. During the quarter, we saw our sold gas as a percentage of our produced gas decline slightly primarily due to completed wells that were delayed in pipeline connection. We are currently selling approximately 60% to 65% of produced gas from Kodiak-operated wells and we expect continued improvement in gas sales as a result of additional third-party midstream infrastructure."

Interim Operations Update

The Company continues its active drilling and completion schedule into the third quarter 2012. Kodiak currently operates seven drilling rigs and participates in the drilling of two non-operated rigs in its Dunn County area of mutual interest (AMI). Two drilling rigs are operating in each of the Polar project area in southern Williams County, the Smokey project area in McKenzie County and in Dunn County. The seventh rig is operating in the Koala project area. Drilling operations are benefitting from improved efficiencies resulting in decreased spud-to-rig-release drilling times. Kodiak's full-time, 24-hour-per-day completion crew continues efficient operations and a second completion crew will be utilized, as needed, as the Company accelerates completion activity through the second-half of 2012.

The Company expects to complete 14 gross (11 net) operated wells during the third quarter. Recently, Kodiak completed one gross (0.60 net) well in northern Williams County which is flowing back. Completion operations have also commenced on a two-well pad (1.4 net wells) in southern Williams County. In the Dunn County AMI, Kodiak continues to participate in wells drilled and completed by its partner.

During the first two weeks of July 2012, the Company's net production has averaged between 17,000 and 18,000 BOE per day.