Kodiak Energy, Inc. and Subsidiary Cougar Energy, Inc. Announce Closing of Additional Property Acquisition and Financing
October 05 2009 - 10:58AM
Marketwired
Kodiak Energy, Inc. (TSX VENTURE: KDK) (OTCBB: KDKN) ("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.
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
Corporation's 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.
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.
Contacts: Kodiak Energy, Inc. Wm (Bill) S. Tighe President and
CEO (403) 262-8044 info@kodiakpetroleum.com www.kodiakpetroleum.com
or www.cougarenergyinc.com
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