Kodiak Oil & Gas Corp. Announces 2012 Preliminary Capital Budget; Provides 2012 Production Guidance; Updates Estimated Reserves Quantities

$585 Million Capex Contemplates 73 Gross (51 Net wells) 2011 Exit Rate to Approximate 10,500 BOE/d for Legacy Production 2012 Full-year Production Outlook of 22,000 to 24,000 BOE/d and 2012 Exit Rate of ~30,000 BOE/d Legacy Proved Reserves ~24.9 MMBoe; Pro Forma Reserves 52.4 MMBoe Kodiak Oil & Gas Corp.

today announced its preliminary 2012 capital expenditure budget (Capex) of $585 million. The 2012 Capex budget compares to Kodiak's 2011 and 2010 Capex budgets of $230 million and $75 million, respectively. In connection with today's announcement of the Company's pending acquisition of producing properties and undeveloped leasehold ("the Proposed January 2012 Acquisition"), Kodiak's Board of Directors has approved a $585 million preliminary 2012 Capex budget allocated to oil and gas activities in the Bakken and Three Forks oil play in the Williston Basin. Kodiak's preliminary 2012 Capex budget is subject to market conditions, oilfield services and equipment availability, commodity prices, drilling results and the closing of the Proposed January 2012 Acquisition. 2012 Production Outlook The Company expects its December 31, 2011 exit rate for its legacy assets to approximate 10,500 barrels of oil equivalent per day (BOE/d). Pro forma for the October 2011 acreage and producing property acquisition and the Proposed January 2012 Acquisition announced today, Kodiak expects its December 31, 2011 exit rate to approximate 17,000 BOE/d. Based on the Company's pro forma 2011 exit rate combined with its 2012 Capex budget, Kodiak expects to average 22,000 to 24,000 BOE/d in production for all of 2012 and expects to exit 2012 at a production rate of approximately 30,000 BOE/d, assuming commodity prices and service costs remain consistent. 2012 Capex Budget The Company has allocated $550 million to the drilling and completing of 73 gross (51 net wells) in the Williston Basin. In addition, approximately $25 million will be allocated to the building of infrastructure for gathering systems, surface facilities and water disposal systems. The Company has designated approximately $10 million for miscellaneous acreage acquisitions. Upon closing of the pending acquisition, Kodiak would assume the contract for one additional drilling rig that will continue to drill on the lands to be acquired. As part of the 2012 Capex budget, Kodiak expects to add two additional operated rigs during the second and third quarters of 2012, subject to economic conditions, for a total of eight operated rigs expected to be running by the second half of 2012. The 2012 Capex includes 61 Kodiak-operated wells with an average 76% working interest, or 46 net operated wells. Also included in the 2012 Capex are Kodiak's Dunn County non-operated activities where the Company expects to participate in 12 gross (4.6 net) wells during 2012. The 2012 drilling program, the largest in Company history, was designed to provide flexibility in identifying suitable well locations and in the timing and size of capital investment. No capital has been allocated to the Green River Basin in Southwestern Wyoming where Kodiak has a non-operated working interest in 30,000 gross acres (7,000 net acres). Kodiak's participation in future wells is subject to prevailing Rocky Mountain liquids and natural gas prices at time of election. Kodiak expects to fund the 2012 Capex budget from existing working capital, operating cash flow, proceeds from its proposed offering of 37.5 million shares of common stock, uncommitted debt financing, or its $650 million committed senior unsecured bridge facility and availability under its existing revolving credit facility agreement. The Company cannot give assurances that its working capital on hand, its cash flow from operations or any available borrowings will be sufficient to fund its anticipated capital expenditures. If Kodiak's existing and potential sources of liquidity through operating cash flows or expanded available borrowings are not sufficient to undertake its planned capital expenditures, the Company may be required to alter its drilling program, pursue joint ventures with third parties, sell interests in one or more of its properties or sell common shares or debt securities. If Kodiak is not successful in obtaining sufficient funding or completing an alternative transaction on a timely basis on terms acceptable to the Company, it would be required to