Kodiak Energy, Inc.
OTC Bulletin Board : KDKN

Kodiak Energy, Inc.

March 10, 2010 17:20 ET

Kodiak Energy, Inc. Announces Cougar Energy, Inc. Financing and Closing of Share Purchase Agreement

CALGARY, ALBERTA--(Marketwire - March 10, 2010) - Kodiak Energy, Inc. (OTCBB:KDKN) ("Kodiak" or the "Corporation") announces that on March 1, 2010, it closed all transactions related to a loan guarantee enabling Cougar Energy, Inc. ("Cougar Energy"), a private company, to secure financing with a Canadian bank. The closing of Cougar Energy's formal financing agreement (the "Agreement") with a Canadian bank was announced through a press release by its U.S. publicly traded parent, Cougar Oil and Gas Canada, Inc. ("Cougar") (OTCBB: COUGF), on March 2, 2010 and its subsequent U.S. SEC Form 6-K filing. Kodiak provided guarantee to the Agreement between Cougar Energy and the Canadian bank consisting of two credit facilities. The first credit facility is a revolving demand loan in the amount of Cdn$1,000,000 at a per annum rate of prime interest plus 3.5%. The second credit facility is a non-revolving acquisition/development demand loan bearing an annual per annum interest rate of prime plus 3.0%. The loan was drawn down by Cougar Energy on March 1, 2010. All documentation related to the Agreement was concluded prior to the draw down, to be effective at the funding.

Kodiak will continue to function as a parent company with respect to the Cougar Energy assets, now through its shareholder position in Cougar as previously press released on January 26, 2010. Cougar Energy's performance will be reflected on Kodiak's consolidated financial reporting.

On March 1, 2010, Kodiak closed the Share Purchase Agreement (the "Agreement") and completed the acquisition of 64.6% of the common stock ownership of Cougar Canada previously press released on January 26, 2010.

Mr. William Tighe, President of Kodiak, stated, "We are pleased that Cougar Energy has closed this financing to enable the execution of the work program on the recently acquired Trout Area properties. The additional closing of the Share Purchase Agreement also enables Kodiak to continue to add value to shareholders through its ownership in Cougar Canada." 

About Kodiak:

Kodiak Energy, Inc. is based in Calgary, Alberta, Canada and a publicly traded oil and gas exploration and development company focused on developing and exploring onshore oil, gas and CO2 properties within North America. Our main prospects are "Little Chicago" located in the N.W.T. and "Sofia" located in northeast New Mexico. Additional information on Kodiak is at http://www.kodiakpetroleum.com.

Forward-looking Statements: This press release contains 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". The Corporation's business is subject to various other risks and uncertainties, which may be described in its corporate filings (www.sec.gov and www.sedar.com). 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. Kodiak undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

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