DENVER, Feb. 20, 2013 /PRNewswire/ -- 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 operational and financial results for the fiscal year ended December 31, 2012.
Kodiak has prepared the preliminary operational and financial information included in this news release based on the most current information available to management. Its normal closing and financial reporting processes with respect to the preliminary operational and financial information have not been fully completed. As a result, its actual operational and financial results could be different from this summary preliminary data, and any differences could be material. Kodiak expects to release its fourth quarter 2012 operational and financial results after the close of trading on February 28, 2013.
138% Increase in 2012 Estimated Proved Reserves Quantities
Kodiak's estimated total proved reserves at December 31, 2012 were approximately 94.8 million barrels of oil equivalent (MMBoe), as compared to 39.8 MMBoe at December 31, 2011. The 2012 total represents a 138% increase from 2011's estimated proved reserves on an equivalent basis, and is comprised of 80.9 million barrels of crude oil and 83.1 billion cubic feet (Bcf) of natural gas. The 2012 reserve mix is 85% crude oil, along with 15% associated natural gas. Approximately 46% of the 2012 total proved reserves are categorized as proved developed producing and approximately 54% are classified as proved undeveloped.
Substantially all of the Company's estimated proved reserves are located in the Williston Basin.
During 2012, Kodiak invested approximately $810 million in capital expenditures related to drilling and completing new wells, including surface facilities and pipeline connections. The 2012 drilling and completion capital expenditures compare to Kodiak's previously provided guidance of $738 million. The Company attributes the budget overage primarily to more wells drilled as a result of drilling efficiencies gained during the year, capital expenditures related to non-operated activity, and unseasonably good weather in the fourth quarter of 2012 allowing for additional activity.
Reserve estimates for 2012 and 2011 were prepared by Kodiak's independent reservoir engineering consultant, Netherland, Sewell & Associates, Inc. and conform to the definition as set forth in the SEC Regulation S-X Part 210.4-10 (a) as clarified by subsequent SEC Staff Accounting bulletins. The proved reserves are also in accordance with Financial Accounting Standards Codification Topic 932, Extractive Activities – Oil and Gas.
About Kodiak Oil & Gas Corp.
Denver-based Kodiak Oil & Gas Corp. is an independent energy exploration and development company focused on exploring, developing and producing oil and natural gas in the Williston and Green River Basins in the U.S. Rocky Mountains. For further information, please visit www.kodiakog.com. The Company's common shares are listed for trading on the New York Stock Exchange under the symbol: "KOG."
Source: Kodiak Oil & Gas Corp.
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