Kodiak Oil & Gas Corp. Announces First Quarter 2012 Sales Volumes and Updates Williston Basin Operations
Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announced preliminary unaudited financial and operational results for the first quarter ended March 31, 2012.
Kodiak has prepared the preliminary information based on the most current information available to management. Its normal closing and financial reporting processes with respect to the preliminary financial information have not been fully completed. As a result, its actual financial and operational results could be different from this summary preliminary data, and any differences could be material.
Kodiak reported average sales volumes of 10,578 barrels of oil equivalent per day (BOE/d) for the first quarter 2012. This represents a 467% increase over sales volumes of 1,864 BOE/d for the first quarter 2011 and a 47% increase over fourth quarter 2011 sales volumes of 7,195 BOE/d. Crude oil accounted for 91% of first quarter 2012 sales volumes.
The Company continues its active drilling and completion schedule into the second quarter 2012. Kodiak is currently operating six drilling rigs and expects delivery of a seventh operated rig in May 2012. The Company also has a full-time, 24-hour-per-day completion crew that commenced at the beginning of the year. A second completion crew will be utilized going forward in order to accelerate completion activity. The additional crew is not expected to increase the Company's Capex, as the completion tasks have already been built into the Capex, but should allow Kodiak to bring the wells on production earlier.
Currently, Kodiak has 14 gross (12.3 net) operated wells drilled and waiting to be completed. Completion operations have finished on two gross (1.9 net) operated wells in April that are now flowing back. The Company expects an additional 12 gross (10.4 net) operated wells to be completed during the remainder of the second quarter. In Dunn County, the Company continues to participate in wells drilled by its partner where there are three gross (1.35 net) non-operated wells waiting on completion.
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