From KOG interim report
Posted: Mon Oct 01, 2012 3:19 pm
nterim Drilling Operations Update
The Company continues its active drilling schedule. In mid-August, Kodiak brought on an additional drilling rig equipped with a skid package. The Company intends to eventually replace its only non-skid-package rig with this skid-mounted rig. As nearly all of Kodiak's wells are drilled on multi-well pads, management believes that it is essential to be able to skid and drill multiple wells on pad locations. By year end, it is anticipated that Kodiak will return to seven operated rigs under various staggered contract durations. Currently, two drilling rigs are operating in each of the Polar project area in southern Williams County, the Smokey project area in McKenzie County, with three rigs operating in Dunn County and one rig operating on the Koala project area in northern McKenzie County.
Kodiak continues to achieve improved efficiencies in its drilling operations and the resultant decrease in spud-to-rig-release drilling times. As a result of improved completion operations efficiencies combined with cost reductions, the Company's completed well costs for operated wells are now in the range of $10 million to $10.5 million.
To date in September 2012, the Company's net production averaged approximately 20,000 BOE/d, after adjusting wells for downtime related to early-stage production and well work on pads. The Company's net oil and gas sales for the same period averaged approximately 17,200 BOE/d, assuming non-operated production during that period was unchanged from production levels in July.
The Company continues its active drilling schedule. In mid-August, Kodiak brought on an additional drilling rig equipped with a skid package. The Company intends to eventually replace its only non-skid-package rig with this skid-mounted rig. As nearly all of Kodiak's wells are drilled on multi-well pads, management believes that it is essential to be able to skid and drill multiple wells on pad locations. By year end, it is anticipated that Kodiak will return to seven operated rigs under various staggered contract durations. Currently, two drilling rigs are operating in each of the Polar project area in southern Williams County, the Smokey project area in McKenzie County, with three rigs operating in Dunn County and one rig operating on the Koala project area in northern McKenzie County.
Kodiak continues to achieve improved efficiencies in its drilling operations and the resultant decrease in spud-to-rig-release drilling times. As a result of improved completion operations efficiencies combined with cost reductions, the Company's completed well costs for operated wells are now in the range of $10 million to $10.5 million.
To date in September 2012, the Company's net production averaged approximately 20,000 BOE/d, after adjusting wells for downtime related to early-stage production and well work on pads. The Company's net oil and gas sales for the same period averaged approximately 17,200 BOE/d, assuming non-operated production during that period was unchanged from production levels in July.