🕐05.10.09 - 17:04 Uhr
Kodiak Energy, Inc. and Subsidiary Cougar Energy, Inc. Announce Closing of Addit
ional Property Acquisition and Financing
CALGARY, ALBERTA -- October 5, 2009 -- Kodiak Energy, Inc.
(TSX-V: KDK
and OTCBB: KDKN.OB) ("Kodiak" or the "Corporation) announces that its
majority controlled subsidiary, Cougar Energy, Inc.
(Cougar), has
closed the property acquisition previously announced on August 25, 2009
consisting of wells, facilities and production from a private company
with operations in and adjacent to the CREEnergy project.
Additional
information on the property acquisition is on our website at
http://www.kodiakpetroleum.com/s/AdditionalProjects.asp
The acquisition of 11 producing wells, 21 suspended wells, and
associated production, water disposal and pipeline facilities has a
total purchase price of CAD$6,000,000 and is funded with cash and debt.
The existing wells and reserves are located in the Trout field.
Current gross production is approximately 170 barrels of oil per day.
Based on the June 30, 2009 independent look ahead engineering report
provided by the private company, the estimated Proved and Probable oil
reserves are approximately CAD$7,250,000 (Net Present Value 10%
discount).
Cougar intends on updating the respective reserve report
information on these acquisitions prior as soon as possible.
The cash portion of the acquisition cost was provided by Kodiak under
the terms of a credit agreement ("Credit Agreement") with Ionic Capital
Corp.
("Ionic").
The Credit Agreement provides for a bridge loan to
Kodiak on behalf of Cougar in the amount of CAD$1,350,000 at an
interest rate of 12% per annum and issuance of 383,188 restricted
common shares of Kodiak based on the 10 day weighted average at market
close price on September 25, 2009, less 10% discount to market.
Mr.
Bill Tighe, CEO of Cougar, states, "We are excited about closing
this acquisition and related financing.
This is a strategic step for
Cougar being able to commence active development in this core area,
achieve timely production and cash flow.
We have already started to
advance our plan to build upon overall area production, infrastructure;
provide substantial upside in workovers, secondary developments and
drilling; along with the required financing.
Cougar will be actively
working this fall and winter to maximize those opportunities and
increase production and thus revenue."
The acquisition and related financing agreement is subject to final
approval of the TSX Venture Exchange and any other necessary regulatory
requirements.
About Cougar:
Cougar Energy, Inc.
is based in Calgary, Alberta Canada and a privately
held subsidiary of parent company, Kodiak Energy, Inc.
The focus is on
the exploration and development of Canadian based onshore oil and gas
properties.
The current projects are Lucy in the Horn River Basin in
northeast British Columbia and CREEnergy Joint Venture and area
projects located in north central Alberta.
Additional information on
the "Lucy" and CREEnergy projects are available at
http://www.cougarenergyinc.com
About Kodiak:
Kodiak Energy, Inc.
is a Calgary, Alberta, Canada based publicly traded
oil and gas exploration and development company focused on developing
and exploring onshore oil, gas and CO2 properties within North America.
Our main prospect is located in the northeast New Mexico.
Through our
private subsidiary, Cougar Energy, Inc., we are developing the projects
of Lucy in the Horn River Basin in northeast British Columbia and
CREEnergy Joint Venture and area projects located in north central
Alberta.
Additional information on Kodiak is at
http://www.kodiakpetroleum.com
For further information:
Wm (Bill) S.
Tighe
President and CEO
Kodiak Energy, Inc.
+1(403) 262-8044
e-mail:
http://www.kodiakpetroleum.com
http://www.cougarenergyinc.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statements: 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".
The Corporations business is subject to
various other risks and uncertainties, which may be described in its
corporate filings (www.sec.gov and www.sedar.com).
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.
Kodiak undertakes no
obligation to update or publicly revise forward looking statements or
information unless so required by applicable securities laws.
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Copyright (c) 2009 KODIAK ENERGY INC.
(KDKN) All rights reserved.
For
more information visit our website at http://www.kodiakpetroleum.com/
or send mailto:
Message sent on Mon Oct 5, 2009 at 8:00:57 AM Pacific Time
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