Kodiak Energy, Inc.
OTC Bulletin Board : KDKN

Kodiak Energy, Inc.

December 06, 2007 02:10 ET

Kodiak Energy, Inc. Will Commence Drilling Program on Its Lucy Property

CALGARY, ALBERTA--(Marketwire - Dec. 6, 2007) - Kodiak Energy, Inc. (OTCBB:KDKN) ("Kodiak" or the "Corporation") is pleased to announce commencement of a drilling program for its project known as Lucy Property located in NE British Columbia.

Kodiak has given "Independent Operations Notice" to its partners for the Lucy Property. Kodiak has concluded negotiations for the new partnership levels of the Lucy Project resulting in, Kodiak being the operator of the drilling project and having a working interest of 67.5% - an increase from the 7.5% original working interest. After an internal geophysical review based on additional seismic that was acquired, Kodiak is currently licensing a drill location. A drilling rig has been contracted, the site surveyed and the expected spud date is December 20, 2007. An abridged independent engineering report - which will be posted on our web site and filed on SEDAR and EDGAR - estimates "prospective resource" at a low of 3.2 bcf to a high of 15.3 bcf and a best estimate of 7.67 bcf of marketable gas. The estimated drilling costs are $2.4 million - gross. Upon realization of successful drilling results, management believes that the well can be tied in and generating cash flow by end of Q2 2008.

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 production opportunities and asset growth through exploration. The Kodiak has lease holdings in Montana, Southeastern Alberta, Northeastern Alberta and high impact prospects located in the central Mackenzie River Valley of the Northwest Territories in Canada, and in north-eastern New Mexico.

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. 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.

The information in the Engineering Report referred to herein contains the terms "prospective resources". Kodiak 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.

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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