KOG » Topics » Williston Basin-Grizzly Prospect

This excerpt taken from the KOG 10-Q filed Nov 14, 2006.
Williston Basin-Grizzly Prospect  

 

We own an interest in 3,864 gross acres in McKenzie County, North Dakota. The lands are located in western McKenzie County, near the Montana border and are part of the Middle Bakken horizontal oil play. The Middle Bakken pay zone is a Devonian silty dolomite located between the Upper Bakken Shale and either a thin lower Bakken shale or the Three Forks Formation. Producing wells in the zone generally consist of from one to three 4,000-5,000-foot horizontal laterals or occasionally one longer 8,000-9,000-foot lateral.

 

Our initial test well, the Kodiak Grizzly 13-6H (62.5% working interest (WI); 51.25% net revenue interest (NRI)- Kodiak operated), has been drilled to a vertical depth of 10,500 feet with dual-laterals for total measured depth of 19,397 feet. The well was put on production July 22 with initial rates of 115 barrels of oil per day (BOPD) flowing naturally without

 

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stimulation or artificial lift. In late-September, the well was put on pump at an initial rate of 160 BOPD, and the production rates have declined to approximately 60 BOPD. The well was fracture stimulated in November and is just being flowed back. Kodiak’s share of the drilling and completion costs to date is $4.1 million. Two miles to the west, the Company has drilled the Kodiak Federal #4-11H well (62.5% WI; 54.69% NRI - Kodiak operated) to a vertical depth of 10,500 feet, and a total measured depth of 24,500 feet through a tri-lateral well. Kodiak’s share of the costs for drilling and completion to date of the #4-11H well is $3.7 million. The well is averaging 325 BOPD and 100 mcfg/d through a 8/64ths inch choke with 1800 psi flowing tubing pressure.


We have commenced drilling on a third location, the Grizzly Federal #1-27H well (62.5% WI; 52.98 NRI before payout 50.86% WI; 37.86% NRI after payout- Kodiak operated), with a surface location that is three miles north of the Kodiak Federal #4-11H. The drilling block for this well encompasses two stand-up 320-acre tracts and an estimated 9,000 foot horizontal leg will be drilled. Our intermediate string of casing at has been set at 10,815 feet and we are currently drilling horizontally. Estimated drill time is 45 days, with drilling and completion costs net to Kodiak of $2.7 million.

 

This excerpt taken from the KOG 10-Q filed Aug 14, 2006.

Williston Basin-Grizzly Prospect

The Grizzly prospect is part of the Middle Bakken horizontal oil play that has been developed from Richland County, Montana into McKenzie County, North Dakota. The Company’s initial test well, the Kodiak Grizzly 13-6H, (62.5% working interest – Kodiak operated), has been drilled to a vertical depth of 10,500 feet with dual-laterals for total measured depth of 19,397 feet. The well was put on production July 22 and produced 820 gross (423 net) barrels of oil through July 31, 2006. The well was placed on production flowing naturally without stimulation or artificial lift. Reservoir engineering is currently being completed and pumping facilities are being installed. We intend to complete fracture stimulation procedures at a later date. Kodiak’s share of the drilling and completion costs to date is $3 million. Approximately two miles to the west, the Company is drilling the Kodiak Federal #4-11H well at an approximate depth of 11,200 feet (Total Measured Depth “TMD”), with a projected TMD of 26,500 feet based upon a tri-lateral well. Kodiak’s share (62.5% working interest – Kodiak operated) of the costs for drilling and completion is estimated to be $2.5 million.

This excerpt taken from the KOG 6-K filed May 24, 2006.

Williston Basin-Grizzly Prospect

        The Grizzly prospect is part of the Middle Bakken horizontal oil play that stretches from Richland County, Montana into McKenzie County, North Dakota. The Company’s initial test well, the Kodiak Grizzly 13-6H, has been drilled to an approximate vertical depth of 10,600 feet. The drilling program anticipates three lateral legs for total measured depth of approximately 22,000 feet to test the oil-prone Bakken Formation. Approximately two miles to the west, the Company has permitted the Grizzly Federal #4-11H well, which should be drilled immediately following the Kodiak Grizzly #13-6H well. Kodiak’s share of the costs (62.5% working interest and operated by Kodiak) for drilling and completing the two completed wells is estimated to be $4,400,000.

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