Kodiak Energy says that its majority controlled subsidiary, Cougar Energy, Inc., has reached an agreement in principle with a private company to acquire the wells, facilities and production with operations in and adjacent to the CREEnergy project.

Bill Tighe, CEO of Cougar, stated, "These are key properties to our development of the CREEnergy project for early cash flow and, importantly, the first royalties paid to CREEnergy under the agreement. This addition will provide opportunities for employment and work contracts in the area."

The acquisition will add 11 producing wells and additional 21 low cost workover or recompletion candidates, essential water disposal and production facilities, and associated pipelines. The existing wells and reserves are located in the Trout field and have a reported cumulative production in excess of 6.6 million barrels of light sweet crude oil from the Keg River and Granite Wash formations. Current gross production is approximately 170 barrels of oil per day; a number we plan to significantly increase. These wells previously produced up to an estimated total of 2,450 barrels of oil per day.

Tags: Kodiak Energy