Kodiak Energy, Inc.
OTC Bulletin Board : KDKN

Kodiak Energy, Inc.

October 07, 2005 16:00 ET

Kodiak Energy Signs Participation Agreement with Canadian Public Company

TORONTO, ONTARIO--(CCNMatthews - Oct. 7, 2005) - Kodiak Energy, Inc. ("Kodiak") (OTCBB:KDKN), is pleased to announce that it has signed a Participation agreement with a Canadian Public Company. The joint venture is to fund and perform an exploration program for crude oil and/or natural gas at leases located in Montana.

The Participation agreement calls for Kodiak to spend $600,000 USD to pay for the costs of drilling up to four wells including seismic exploration. In return for paying 100% of the costs of the wells, Kodiak will earn 50% of the paying interest in any of the wells drilled in phase one of the program. On successful completion of the drilling in phase one of the project Kodiak will have the right to participate in the development of the balance of the Montana leases on a 50% earned basis. Kodiak will have to pay its proportionate costs associated with the development.

Kodiak expects seismic exploration to occur in late October 2005 and drilling to commence in November 2005.

On September 22, 2005, in conjunction with a joint venture partner, Kodiak has successfully bid on 2 sections of land in Southern Alberta at a recent government land sale. Plan of development would include 2D seismic on the acquired property, followed by developmental drilling in early 2006. This is expected to follow previously drilled and logged wells on the sections.

Kodiak Energy is a junior oil and gas exploration company with a joint venture in Montana and South East Alberta.

This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the Company's proposed oil and gas related business. The Company's business is subject to various risks, which are discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). The Company'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 Company 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.

Contact Information

  • Kodiak Energy, Inc.
    Marc Juliar