September Corporate Overview. Kodiak-operated TSB # H & #16-8-7H Dunn County, North Dakota

Transcription

1 September 2009 Corporate Overview Lynn A. Peterson, President & CEO Kodiak-operated TSB # H & #16-8-7H Dunn County, North Dakota

2 Contact Information Kodiak Oil & Gas Corp Broadway, Suite 250 Denver, Colorado P: F: NYSE Amex: KOG Investor Relations David P. Charles Sierra Partners LLC P: NYSE Amex: KOG Forward-looking Statements This presentation includes statements that may constitute forward-looking statements, usually containing the words believe, estimate, project, expect or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words expects, plans, anticipates, believes, intends, estimates, projects, potential and similar expressions, or that events or conditions will, would, may, could or should occur. Forward-looking statements in this presentation include statements regarding the Company s exploration, drilling and development programs, the Company s expectations regarding the timing and success of such programs and the timing and availability of financing to satisfy the capital requirements, and the Company s expectations regarding the future production of its oil & gas properties. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in the prices of oil and gas, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, uncertainties regarding the Company s liquidity and capital requirements and the availability and cost of capital necessary to fund the Company s current plan of operations, the effects of governmental regulation, adverse changes in the market for the Company s oil and gas production, dependence upon third-party vendors, and other risks detailed in the Company s periodic report filings with the Securities and Exchange Commission. Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 2

3 Key Investment Highlights Strong Management Team Kodiak s management team has nearly 200 years of combined experience, including work for some larger independent exploration & production companies Name Position Years of Experience Former Companies Lynn Peterson CEO 30 CP Resources, Deca Energy Jim Catlin COO 37 Keith Doss CFO 22 CP Resources, Deca Energy, Petroleum, Inc. Gasco Energy, Western Gas Resources Russ Cunningham Exploration Manager 33 Cabot Oil & Gas, Seven Seas, Getty Dr. Russell Branting Engineering Manager 20 Anadarko, Western Gas Resources, Chevron Michael Murray Land Manager 31 EnCana, Texaco NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 3

4 Corporate Data + Operations Corporate Data Symbol/Exchange: KOG / NYSE Amex Market Capitalization: ~$150 MM Shares Outstanding: MM Management Ownership: 8% Total Assets (6/30/2009): $45.9 MM Zero LT Debt Operations Summary Williston Basin Lease position: 101, gross acres (64,000 net) 58,000 gross (35,000 net) in Dunn County, ND Targeting the Bakken shale, Three Forks /Sanish, Red River, and Mission Canyon formations CE # H CE # H Green River Basin and Other Wyoming Lease position: 64,000 gross acres (34,200 net) Targeting the Baxter shale and Almond Sands NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 4

5 Williston Basin Most active Bakken region in ND On trend with significant Bakken producers Targeting Middle Bakken with Three Forks / Sanish Potential P A L E O Z O I C MISSISSIPPIAN -Ratcliffe -Mission Canyon 8,000 DEVONIAN -Bakken 10,300 -Three Forks 10,450 -Nisku -Duperow SILURIAN -Interlake ORDOVICIAN -Red River 11,000 NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 5

6 Williston Basin Bakken Oil Play Activity Map Whiting/ EOG Parshall Field 2009 CAPEX primarily allocated for the Bakken oil play on the Fort Berthold Indian Reservation (FBIR) in Dunn County, ND KOG operates approximately 80% of its leasehold, controls drilling pace and expenditures McKENZIE DUNN Marathon ConocoPhillips MOUNTRAIL Kodiak Oil & Gas Corp. McCLEAN FBIR Lease Position as of 8/31/2009: 58,000 gross; 35,000 net acres Original 5-year lease terms with 3-4 years remaining on existing leases Well Spacing: ,280 acres Reported Bakken EURs: MBoe Current Economic Parameters $4.0 MM $6.0 MM drilling and completion costs days to TD 82% Net Revenue Interest t NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 6

7 Bakken Formation NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 7

8 Kodiak Bakken Drilling Program KOG Well /Location 1: MC H 2: MC 16-34H 3: TSB H 4: TSB H 5: TSB H 6: TSB H 7: CE H 8: CE H 9: TB H Initial 1,037 BOPD 948 MCFD 1,195 BOEPD Initial 1, BOPD 1.28 MMCFD 1,342 BOEPD Initial 870 BOPD KOG Initial 1,274 BOPD 717 MCF 1,394 BOEPD KOG Initial 604 BOPD 643 MCF 711 BOEPD KOG Initial 1,626 BOPD 1.38 MMCF 1,856 BOEPD 4 SKUNK CREEK KOG Initial 903 BOPD 453 MMCF 978 BOEPD MOCCASIN CREEK TWO SHIELDS BUTTE Initial 960 BOEPD Partner: XTO KODIAK 50% WI SADDLE BUTTE KOG Initial 1,309 BOPD 1.1 MMCF 1,492 BOEPD Three Forks Test 465 BOPD 978 BOEPD 272 MCF 510 BOEPD 2 1 Private Company KODIAK 60% WI CHARGING EAGLE Private Company KODIAK 60% WI KOG Initial 711 BOPD 604 MCF 811 BOEPD Initial 829 BOPD 547 MCFD 920 BOEPD TALL BEAR NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 8

9 2009 Drilling and Completion Activities Well WI / NRI (%) Days to TD* Length of Lateral Completion Date Number of Stages IP 24- Hour Test BOE/D First 30 Days Oil Note MC # H 60 / ,169 4/23/ ,397 Flowing well MC #16-34H 60 / ,150 5/4/ ,394 13,406 Flowing well TSB #16-8-7H 37.5 / ,995 6/7/ ,856 21,542 Flowing well TSB # H 50 / ,465 6/18/ ,288 Flowing well TSB # H 50 / ,313 8/3/ ,492 Flowing well TSB # H 50 / ,163 8/24/ Flowing well CE # H 55 / ,950 Q WOCU CE # H 60 /50 6,621 Q WOCU Spud after TB # H 60 /50 **10,000 Q CE# H *Includes running liner in the hole / ** Approximate lateral length NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 9

10 2009/2010 Drilling and Pipelines Field Inventory 8 Approved Permits 1 Drilling Pad Built NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 10

11 Key Investment Highlights Developing Position in the Vermillion Basin CFU 1-8 Vertical Test drilled in Current Activity Completing CFU #14-36 well Completion to follow on HBU # well HBU Horizontal well Waiting on Completion CFU #14-36 Horizontal Test Completion Operations Underway Total Acreage Position: 44,000 gross acres 9,100 net acres Multiple formations in addition to the Baxter Shale containing hydrocarbons HBU 1-4 Vertical well drilled in Sweetwater County, WY Moffat County, CO Kodiak has an exploration agreement with Devon Energy Devon operates Operator drilled two horizontal and two vertical wells in 2008 Horizontal wells currently being completed NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 11

12 Key Investment Highlights g Summary Actively Developing Williston Basin Leasehold Bakken shale characterized by low geological risk Six Bakken wells completed and producing Two Bakken wells WOC; One Bakken awaiting rig move and rigging up Growing production and cash flow Upside potential in emerging Three Forks / Sanish play underlying Bakken Fm What this could possibly mean to shareholders (risked case) Bakken: 35,000 net acres X 90% / 640-acre spacing = 50 net locations 50 net locations X 600,000 EUR X 0.82 NRI = 25 MMBO Three Forks: 35,000 net acres X 50% / 640-acre spacing = 27 net locations 27 net locations X 400,000 EUR X 0.82 NRI = 9 MMBO KOG-operated Bakken properties with significant WI% Large, experienced joint-venture partners Clean balance sheet with no long-term debt NYSE Amex: KOG Exploring, developing and producing oil and natural gas in the U.S. Rocky Mountains. 12