Kodiak group drills 3 Wyoming wells

Debra Beachy, Petroleum News contributing writer

Denver-based Kodiak Oil & Gas Corp. said Sept. 3 that three development wells have been drilled at its Pacific Rim project in southwestern Wyoming.

Kodiak said its partner and project operator, Warren E & P Inc., drilled the three coalbed methane wells. Kodiak holds a 20 percent interest in the project. The group is developing seven additional wells to be connected to existing pipelines by year-end. Kodiak President Lynn Peterson said: “We are pleased with the progress and particularly encouraged that coal thicknesses are comparable to our first two wells and mud logs indicate excellent gas shows throughout the coals. The drilling of the first three wells was completed without any problems and below our anticipated costs.”

Separately, Kodiak announced it intends to reduce the exercise price of 1,512,500 warrants issued Dec. 6, 2001, and expiring Dec. 6, 2003.