Kodiak Oil & Gas (KOG) released an interim corporate update in early June, reporting strong results from the Bakken. For three of its high working interest (94% and above) wells in McKenzie County, North Dakota, Kodiak recorded initial production rates of 3,117, 2,971, and 2,709 boe. Kodiak indicated in its update that it expects to place three wells in the Dunn County area into production within “the coming days”.

These wells are using extended laterals from 9,177 to 9,697 feet, which also extends the time that it takes to reach completion. Fortunately for Kodiak, its seventh operated drilling rig was recently delivered, and will be sent to McKenzie County to assist in Kodiak’s escalating Bakken production for its first project, drilling a four-well pad. Kodiak is reporting higher rates of return from 10,000 foot laterals compared to laterals closer to 5,000 feet, so its recent results are in line with its past predictions – a sign of a strong management team and a realistic outlook. Both of these strengths will help Kodiak further along its growth trajectory, which I believe could be exponential.

According to its May 2012 investor presentation, Kodiak anticipates producing between 17,000 and 21,000 boe per day in 2012. Its results on the Bakken show that Kodiak will be able to meet this goal and then some by the end of this year. According to its first quarter earnings report, Kodiak had interests in 157,000 net acres in the Williston Basin, which it is using to target the middle Bakken specifically.To continue reading, click here.