Kodiak Energy, Inc.
OTC Bulletin Board : KDKN

Kodiak Energy, Inc.

September 27, 2007 20:20 ET

Kodiak Energy, Inc. Files Material Change Report

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2007) -

(NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.)

Kodiak Energy, Inc. (OTCBB:KDKN) ("Kodiak" or the "Corporation") announces filing of material change report containing the following information: "Evaluation of Prospective Resources, Exploration Licence (EL) 413, Little Chicago, Grandview Hills Area, Northwest Territories" prepared for Kodiak Energy, Inc., August 1, 2007" (the "Chapman Report"). The properties evaluated in the Chapman Report have two significant "prospective resources". The following information has been extracted from the Executive Summary section of the Chapman Report that discusses those prospective resources:

Devonian Bear Rock Prospect; EL 413, Little Chicago; Grandview Hills Area, NWT:

a) The Corporation's lands are located adjacent to the Mackenzie River in the Northwest Territories of Canada, northwest of Fort Good Hope in the Lower Mackenzie River Basin.

b) The Corporation's Little Chicago Block is comprised of 198,873 acres gross or 159,098 acres net, to the 80 percent interest evaluated.

c) The expected cost to drill, complete and evaluate a well is CDN$7,000,000.

d) The Corporation plans to commence drilling in 2008 and operations are expected to take less than one month.

e) It is anticipated that a pipeline will be built by a third party to Norman wells to deliver this oil to the existing pipeline system.

f) The Corporation will be the operator of the block.

g) Chapman has estimated a probability of success of 14.0 percent for the arithmetic average of the three cases considered. The risk analysis indicates that less than a 1.0 percent Probability Of Success (POS) is required for this prospect to earn a 15 percent rate of return. The main risk to this play includes the possibility of encountering either poor or no development of reservoir quality facies in the Bear Rock formation.

h) A summary of the "after risk" values for the Forecast Prices and Costs Case for the Corporation's interest position follows:



Corporation Net Value (80% WI) Thousand CDN$
Undiscounted 483,800
Discounted @ 5%/year 294,300
Discounted @ 10%/year 188,100
Discounted @ 15%/year 124,600
Discounted @ 20%/year 84,700


Basal Cambrian Sand/Top Precambrian Prospect; EL 413, Little Chicago; Grandview Hills Area, NWT:

a) The Corporation's lands are located adjacent to the Mackenzie River in the Northwest Territories of Canada, northwest of Fort Good Hope in the Lower Mackenzie River Basin.

b) The Corporation's Little Chicago Block is comprised of 198,873 acres gross or 159,098 acres net, to the Corporation's 80 percent interest.

c) The expected cost to drill, complete and evaluate a well is CDN$10,500,000. If this prospect could be investigated by deepening a well drilled to test the Bear Rock, the incremental cost to test the Precambrian would be only CDN$3,500,000.

d) The Corporation plans to commence drilling in 2008 and operations are expected to take less than two months.

e) It is anticipated that a pipeline will be built by a third party to Norman Wells to deliver this oil to the existing pipeline system.

f) The Corporation will be the operator of the block.

g) Chapman has estimated a probability of success of 10.0 percent for the arithmetic average of the three cases considered. The risk analysis indicates that a 5.2 percent Probability Of Success (POS) is required for this prospect to earn a 15 percent rate of return. The main risk to this play includes the possibility of encountering either poor or no development of reservoir quality facies in the Basal Cambrian Sand or that the trap is not sealed.

h) A summary of the "after risk" values for the Forecast Prices and Costs Case for the Corporation's interest position follows:



Corporation Net Value (80% WI) Thousand CDN$
Undiscounted 63,548
Discounted @ 5%/year 38,084
Discounted @ 10%/year 22,037
Discounted @ 15%/year 11,578
Discounted @ 20%/year 4,565


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 not only immediate production and cash flow but growth through exploration. The Company has lease holdings in Montana, South eastern Alberta, North eastern Alberta and high impact prospects located in the central Mackenzie River Valley ("Little Chicago prospect") of the Northwest Territories ("NWT") in Canada, and the Tucumcari Basin area in north-eastern New Mexico.

This information in this press release contains the terms "prospective resources". The Corporation advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the resources in this category will ever be converted into reserves. In addition, "prospective resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of a prospective resource will ever be upgraded to a higher category. Under Canadian rules, estimates of prospective resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a "preliminary assessment" as defined under National Instrument 51-101. Under US rules, investors are cautioned not to assume that part or all of a prospective resource exists, or is economically or legally recoverable.

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." 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. 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. The Chapman Report is also available on Kodiak's website.

Contact Information