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Kodiak Oil & Gas Corp.

Mon, 1 Dec 2008|



Kodiak oil and gas is presenting next based in Denver. -- act as an independent energy exploration development company and presenting today is -- Peters. Good afternoon thanks to -- -- your this afternoon. Kodiak oil and gas where -- Denver based company. Focus strictly on the Rocky Mountains. We'll walk through the forward looking -- -- -- basically so. This the tears we're focused on this up North Dakota Montana in the most base and and in down in southwestern Wyoming. What's referred to divert Permian Basin which is also part of the greater -- please. Today the market cap it's like -- -- some troops talk today it's. -- fifty Marion we have money primary insurers. Again were pretty simple company get your arms around we are focused and to -- I spoke to. Specifically within the -- to base and -- active in the Bakken play. On the eastern. Portion of well some days. Right continue to work these areas -- continue to pick up acreage where we can. -- continue to bring in joint venture partners were and if we need to. And I think as you see -- walk through this we're gonna lawyers try to maintain -- working interest. And we're actually trying to operate wherever wherever possible. When we get to while we talk about our agreement Devon Energy obviously in cases where -- -- -- much larger -- -- involved with. We do relinquish -- share operations. As far as the group -- we put together. The -- -- more experience communal movement you know -- -- got one at 535 years of experience. Then bigger companies smaller companies were pleased with group we have. You know I think for small company. First against anyone. Moving on to the -- from basin of the area. From the upper left hand corner of your screen. Is sharing Cammie Montana. And to divide -- I -- North Dakota. There's very that we -- focused on looking for mission canyon. And red river place. We've actually been pretty successful the last several years. Most of the red river there -- Trying to find right now we're identifying through 3-D which -- a couple of new treaty seismic programs we've got some prospects identified. We look at the economic conditions will probably parolees sometime in 2009. Straight south of -- original film -- filled with guys are very excited about Bakken play back in 2000 line. We do have -- following right on this dateline we drove. Three wells that are single dual trilateral. -- -- definitely an -- -- -- and we have some development locations and were -- worker but really it's on 2010 and beyond. What I wanna spend time with today talk about it -- eastern area. He's to the national and flying. The next map well it's kind -- and put these up when they're very good. I'm like I'll walk through the areas that were working on. Two upper part of the -- to -- Whiting in the -- Agee. -- -- is right to. Down below the eulogy name up there. -- -- -- lake area. Just right below their name. He moved down the west side you -- -- and -- -- you picked up Amerada us. -- Palace and the number of other companies. Moving for the sake pickup continental. And -- around the corner you -- Americana -- felons. I think what strikes anybody here is the big gap a little it's kind of -- horseshoe affect. And -- before birth of Indian reservation. An area that I was really average stayed away from. We entered it in 2006 -- the first company to -- on many tracks. Quite frankly it's been learning experience have been some positives and some -- -- -- An issue for us but we are -- product progress. We've allocated. Upward of forty million dollars in our preliminary camp there for 2009. Quite frankly -- reevaluate what commodity prices are current cost relief wells. -- product continues to bring that down slowdown activity as we move along here. What our -- for the real the year 2009 the I wait for -- part of this place so. As commodity prices changer -- pricing scenarios change we can move more aggressively. And of 2009 and 2010. Currently we have about 37000. Net acres on the reservation. We've got. Five -- uses a 2% in our violations of question I get over and over what are the terms so we just write about our. Shortest term -- we -- probably was right under four years so we're pretty good shape we have a nice contiguous. Walk. To work. We would take the area don't want to point out this process action and all I wanna do whether it's -- actions really define what -- area so we're focused. We're looking at both the -- and we it's the -- in this encompassed by an upper and lower Bakken shale. And then down below. The lower market shows what we referred to as the three forks at the top three port one lot -- -- it is the same. In this cross -- run through from the southwestern portion of our block of acreage. Over to the east through the middle of north of -- and then east and are really wanna do show you. We try to take three wells that had cores taken. Down and are prospector these -- would take about both shell and mobile back for excellent human. Early on we take a look at all the oil saturation both. In the middle member of the Bakken in the Bakken -- themselves. And also in the three -- it looks very. Problems and as we move through this also want to point out. If you look to the dialogue and very right hand side. The -- change we believe there is an eastern limit on this play and I think if you look -- volume of what's been going on. As we move further south there -- some there's a reason that all the activities that one point of time and to the west. That's not to say that -- not going to be oil found west -- east of us a lot of -- and -- Currently. Continental's got Cheryl -- units that are -- for the on the November 20 hearing of the north. XTO drilling -- well over their right now and no -- proposed one Lou they're -- for for a little while. So there's a lot of activity going on Wilson. You know quite frankly if they make most of these devices just emissary projecting. Wanna move back to -- Momentarily. Like to talk about reserves through this whole area. I'm gonna give -- a wide range we're looking at. To the south you have primarily marathon. Baritone -- drilling completing wells a little bit differently than most companies in this way. And that they're drilling long lateral -- ten to 121000 foot lateral us. There -- -- primarily what we refer to helmerich -- one -- you don't know exactly where it goes. And the results are obvious and satisfactory for America. As you move other parts of the base and approved partial area we don't know what those numbers are their -- -- -- and girls well. Here there do more than stage fracture they're going into the middle blocker in there right unified. -- -- They're given anywhere from six to -- stages some cases more now. They're trying to initiate their practice specific period for -- the -- rocker and quite frankly. I think the results speak for themselves. Obviously there's -- -- Whiting their use lot of 12180 Acre spacing to -- longer lateral is. I've heard that there practice -- be going up to now 1215. Stages. Again the results speak for themselves I think. Our specific attitude toward jesus' stage fracture are important and we intend to do that if we completed wells. Like the folks now really and our specific area. There's been four wells drilled it should speak to the mineral ownership on the reservation -- really four different types. The original river of the Missouri River rouge river channel -- -- river. Minerals are that are owned by the state in North Dakota. When the river was stand up in the fifties. These lakes were formed the minerals into the -- went the tribe. Well we can -- the onshore minerals are broken down between the individual tribal members. Called -- -- And there's also some feet tracts that are then taken out of a lot -- that so. Those -- the type of ownership that we do. A private group women here and picked up from the -- simple -- early they've drilled a series of wells. Right in our -- a feature contiguous to or block of acreage in the numbers have been quite. Quite pleased. -- start up in the upper left hand corner the first well they drilled the welcome lot of believers Lebanon. Wave -- through -- those 1037 girls today with about a million. -- gas. They -- straight south of that -- two -- side by side. When acumen for eleven point eight one slightly under. Quote about me -- -- -- gas and I do point out its gas. Report. It's 1617 under BTU gas isn't true economic value to this yes. They drove -- to a write them over -- This book him honor writer and thousands little under a thousand barrels -- -- about a million. -- gas well all four of those wells are extremely good well we've been tracked through production whenever data sharing arrangement with the group. We know exactly how the wealth with racked what they've done with them with the production applied. You know obviously the story early -- we believe that the easy users somewhere between 350000. Barrels. And upwards half -- million girls well so. Work -- about it we're pleased. The first well the one up from the very left hand corner there was a pilot hole drilled it into the three -- member. -- very typical up here that shows rewards fabulous logs and core. But I think if we see this report being developed by -- -- down to the southwest. By XTO west of us -- on the -- ideas are welcome as a group -- wells it's something we're gonna take a look at. So we're gonna lay out our drilling program here we've you'll see -- block of -- we brought in various partners to various -- -- acreage. We've tried to identify almost -- private companies would one partners TO. From the north it's public. Our first well billion marks from creek location and on the south western -- -- they preach. We struck a builder few weeks ago with private group. We're by they will be paid 80% of the first wells costs we will repaid 40%. Are working interest after the world for over 60%. There -- force. We're delighted with the arrangement. We've got to deal struck where they -- -- the first. Third fifth and seventh well under that -- arrangement. We will -- the alternating -- heads up things. So the first two wells will be drilled on -- the terms of that agreement. In the personal remarks street -- to -- Followed by the 1634. Well. At that point we intend to go straight north up on their -- blocked. Right now we've got it in the middle were probably gonna just that because of the who doctor in the middle. That's a week well as a private party is proposing. We're looking -- grown three -- -- -- matter is so. If we can put all that thing together we'll probably move our third fourth location street north two two abortions you there. They've wherever -- some like thirteen permits approved today would probably have another six by December for. So it approach and warning we -- good to go. After the first four wells you know we're gonna move -- -- around accordingly we do have a new -- unit rigged. -- We entered into agreement early part of the year unfortunately we have had some delays. With that -- You know we are -- up right now -- top drive you put on today that there are standing up. We do intend spider probably latter part of this week so. We're good to go -- We have -- -- -- about humps and I'm not sure that's a good thing today was still priced right from them. You know we did this in the -- dollars trying to get ourselves organized -- -- good shape. And you know we -- just -- I don't think there's really anything stand our way you know we're still -- six point two million walk cost -- -- -- with the remote Gregory ago. I expect that these prices will probably drop -- time. To do want to point out we're trying to drill two wells from every pad. Our first twelve weeks but later this week we usually thirty to forty day -- really new crew. First time been here might take four days they take who knows but gives down somewhere around Christmas time. We will Vince did that -- we hope we did the rig with in the day time framework. Somewhere around there -- -- -- well about fifty feet away. We'll turn and -- that to the northwest direction. Once we complete the drilling of that well we'll move the -- off location. And we'll begin our completion work and again we are gonna do the simple 5000 collateral is -- -- -- use sliding sleeves. And -- about -- stage so. We're not gonna do for compliance. Or first few wells -- -- with the winner on set winner that is -- -- here. We don't -- -- -- after he tanks for three days so we're in try to keep supplements and -- work so. Total wise we've got acreage here we drove it from 640 Acre spacing we've got fifty locations we -- want to treat -- -- is twice that. We will probably doing some work from 128. The real million dollar question is do we have -- those numbers that we average or some type of similarity between the middle -- and and the three for quite frankly from the early results looks like probably. Have more than just some little markers were pretty excited about what we've got going. The conditions. Resolved themselves. -- switch gears doubled to Wyoming its -- we've been working for Lester -- years. Certainly that's the valid through this players against her ability. You know we've we've grown a handful well four wells back in two 62007. This was after question -- -- 45. And the numbers are on all over the board westerners got a couple great wells -- -- -- particular. They've got a lot that are non commercial. Today. We drilled our first tree we're non commercial. First and we had a mechanical issue worth 36 -- right hand corner. The map. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We've notion out of 3-D program over the entire blocks -- got hopefully answered. We drilled a well out on the west side out horseshoe basin you. Just about a year actions a year ago we announced that -- this financial forms so. -- we drilled and completed the well tested that. We've now finally got the pipeline and we've got all for production facilities. We did -- -- our initial production numbers today. You know the wells produced about 4000 -- confident person to have. Day's production along with point one million gas currently producing as of yesterday -- -- -- -- twelve. -- economists say about 2.2. Mean I guess so we're excited about the well we're concerned obviously letting -- -- for a year. We obviously cleaned it up and we do dangerous -- Pretty encouraging and I'm not gonna try to -- to Hitler reserved area. You know -- we have this video production for but it's a different well we knew that all along rock movement different over here reported plea. So after we drove that thing -- with our partner -- you guys -- great job. They came to us and said you know. The -- -- -- -- here we think we have a different play why don't we put our completion work and experience together with your drilling. And suppan put this thing together makers play work. So we struck a deal the first part of February go away I've -- finally. Basically they match your expenditures and -- to match your expenditures -- -- that we had incurred to -- 50% interest and they've set out we are now on our fourth well with them I'll start at the very top we drove the they applied to one measure a this wells drilled down into the Baxter which senator and -- history casing right -- the Baxter. We -- -- we walk that well we have temporary sort of bridge plug. Welcome back later date to either taken off horizontally -- complete vertically. We moved over well horseshoe basin. We drilled the one dash four well. Northwest offset to our discovery -- the 53. This well was drilled into the Baxter -- and we took about 240 feet of core out of this well. Begin with senator bridge plug after logging and we'll evaluate this for future horizontal drilling and -- -- completion of -- vertical well. We're currently drilling. The thirteen 36 well just east of our discovery. Four hours -- or well. -- -- -- -- -- -- -- -- -- -- -- -- -- -- That -- will probably shut down our operations we will complete this -- for next year. These all most of these lands -- Bureau of Land Management. Acres and so we have certain winners stipulations we have to do it over on the west side. We -- pretty high gets a -- 53 of them -- So. The fourth well that is currently drawing is again back on the north and east side its 1436. Well. It's been drilled horizontal well just to the north and west of our regional for 36 well. Again we go back to this well -- completed it right at Christmas time in 2006. Well -- great shows we really excited that we -- were wrong so. For whatever reason we do do some bad casing in the hole locations collapsed. And we were never able to complete this well what you wanted to -- -- not a new produces them past first couple so. We're gonna use as -- monitor while we're gonna use do some micro seismic work we do hope that we can complete this -- -- this year. That particular wells on the state section there's accounting road that runs -- -- would be -- line. Theoretically can stop us now from its beds or -- make -- stop all operations. -- -- -- -- -- -- -- Again I I do talk about this we've got a lot of work to do you you know we've got our course to analyze just completed 3-D shoot over the west side point five miles. We've got our new production data coming out of horrified that -- well we're gonna put all of us together we've. Had terrible service companies and working with those monologues. Actually pretty encouraged what option but it's still some time restart -- now. Gotta wrap this up. You know as -- said -- pretty simple we have rules to basin Bakken play and it's worked capex spend ago. You know we're pretty much covered up -- main base of for the time being. As we get into in the -- nine workers who are rat process. Commodity prices growing costs for. One. We are gonna push forward we're gonna drill -- we got cash in the bank we've got no debt. We do have a small borrowing base line of credit that we -- after we need to. Quite frankly I don't believe you need to four for six wells we've got -- structured. To Rome where we -- -- to worry about it -- get cash and to get the job so. You know I've often said mr. but it we've been national prices dropped you know we're in the right zip code on both -- -- we've -- the -- partners with XTO and they haven't. We have good working relationship with all the industry and we're gonna forward so with that I'll open it up which questions -- -- different breakout -- -- Thank you very much -- --

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