This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kodiak Oil & Gas Corp. Announces 2013 Capital Budget & Provides 2013 Sales Volumes Guidance

DENVER, Dec. 18, 2012 /PRNewswire/ -- Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota, today announced that its Board of Directors has approved a $775 million 2013 capital expenditure ("CAPEX") budget allocated to Williston Basin oil and gas activities.  Kodiak's preliminary 2013 CAPEX budget is subject to, among other things, market conditions, oilfield services and equipment availability, commodity prices and drilling results.  The 2013 CAPEX budget compares to Kodiak's final 2012 CAPEX budget, which was $750 million.  The Company also today provided its 2013 outlook for oil and gas sales volumes.

2013 CAPEX Budget

The Company has allocated $600 million of the 2013 CAPEX budget to the drilling and completing of 75 gross (61 net) operated wells; $140 million to non-operated drilling and completion activities for 14 net wells; and $35 million for other items including water disposal systems, well connections, and acreage acquisitions. The 2013 drilling program is designed to provide flexibility in identifying suitable well locations and in the timing and size of capital investment. 



As part of the 2013 CAPEX budget, Kodiak expects to operate six drilling rigs during the majority of 2013, subject to, among other things, economic conditions (including commodity prices).  Kodiak's rig termination schedule allows for the Company to adjust CAPEX in reaction to economic conditions.  Kodiak expects to primarily utilize one dedicated full-time, 24-hour completion spread, while maintaining the option to add a second 24-hour crew on an as-needed basis. 

No CAPEX has been allocated to the Green River Basin in Southwestern Wyoming where Kodiak has a non-operated working interest in 30,000 gross acres (7,000 net acres).  Kodiak's participation in future wells in the Green River Basin is subject to prevailing Rocky Mountain liquids and natural gas prices at time of election. 

Kodiak expects to fund the 2013 CAPEX budget from existing working capital, operating cash flow and availability under its existing revolving credit facility agreement.  As of December 18, 2012, the borrowing base and total commitment for the revolving credit facility is $450 million.

2013 Sales Volumes Outlook

At this time the Company has two gross (1.6 net) wells on flowback, four gross (3.0 net) wells being completed, and anticipates that completion activities will commence on four gross (3.0 net) additional wells by year-end.  Based on the Company's anticipated 2012 exit rate, combined with activities contemplated under its 2013 CAPEX budget, Kodiak projects to average 29,000 to 31,000 BOE/d in sales volumes for the full-year 2013, which would exceed 80% year-over-year sales volumes growth.   The projected exit rate for 2013 sales volumes is expected to range from 38,000 to 40,000 BOE/d. 

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs