Kodiak Energy, Inc.
OTC Bulletin Board : KDKN

Kodiak Energy, Inc.

September 28, 2007 17:53 ET

Kodiak Energy, Inc. Announces Completion of Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2007) -


Kodiak Energy, Inc. (OTCBB:KDKN) ("Kodiak" or the "Corporation") is pleased to announce that it has closed its previously announced brokered private placement (the "Offering") of common shares (the "Common Shares") and common shares issued on a "flow-through" basis (the "Flow-Through Shares"). Pursuant to the Offering, the Company issued 2,756,000 Common Shares at a purchase price of US$2.50 per Common Share and 1,866,670 Flow-Through Shares at a purchase price of US$3.00 per Flow-Through Share for total gross proceeds of US$12,490,010. A portion of the over-allotment option granted to Research Capital Corporation ("Research"), Kodiak's agent on the Offering, was exercised. Research, pursuant to its agency agreement with Kodiak, may continue permitted sales, and Kodiak anticipates that additional funds may be raised in the future.

In connection with the Offering, Research was paid fees and commissions which in the aggregate totaled 8.0% of the gross proceeds to the Corporation arising from Offering. Research was also granted warrants to purchase, until March 28, 2009, (i) 220,480 Common Shares of the Corporation at a purchase price of US$2.50 per Common Share and (ii) 149,334 Common Shares of the Corporation at a purchase price of US$3.00 per Common Share.

All of the Common Shares and Flow-Through Shares issued pursuant to the Offering, including any Common Shares as may be issued to Research pursuant to exercise by it of the aforementioned warrants will be subject to a hold period in Canada of four months and one day from today's date and an indefinite hold period in the United States.

Kodiak Energy, Inc is a Calgary-based, publicly traded oil and gas exploration and development Company focused on creating a portfolio of North American assets that offer near-term production and cash flow as well as substantial growth through exploration. The Corporation has lease holdings in Montana, south-eastern Alberta, north-eastern Alberta and high impact prospects located in the central Mackenzie River Valley of the Northwest Territories ("Little Chicago"), and the Tucumcari Basin area in north-eastern New Mexico ("Sophia" and "Spear Draw").

This press release may contain forward-looking statements. The words or phrases "would be," "will" "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the Corporation's proposed oil and gas related business. The Corporation's business is subject to various risks, which are discussed in the Corporation's filings with the US Securities and Exchange Commission ("SEC"). The Corporation's filings may be accessed at the SEC's Edgar system at www.sec.gov and on the SEDAR in Canada. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Corporation cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such a statement.

Further information relating to Kodiak may be found on www.sedar.com and www.sec.gov as well as on Kodiak's website at www.kodiakpetroleum.com.

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