Kodiak has closed on two separate definitive purchase and sale agreements to acquire an additional Williston Basin leasehold.

In the first transaction, Kodiak acquired 5,680 gross mineral acres (4,531 net) in McKenzie County, N.D. The lands are located on the border of McKenzie and Williams Counties west of the Nesson Anticline, and offset existing Bakken and Three Forks producing wells successfully drilled and completed by other operators such as Newfield Exploration, Continental Resources and Brigham Exploration.

Application has been made to the North Dakota Industrial Commission to include the lands in six 1,280-acre drilling units. Kodiak intends to operate each of these drilling units. Assuming two to three well bores per 1,280-acre drilling unit, Kodiak anticipates that the acquisition could yield approximately 12 to 18 gross Bakken locations. The lands also have potential for Three Forks production. The Company intends to drill at least one Bakken test on the newly acquired lands in 2010.

The contiguous leasehold position was acquired from an undisclosed private party. Also included in the acquisition are certain surface facilities and equipment associated with a temporarily abandoned well and pipeline infrastructure that ties into a regional natural gas pipeline controlled by a third-party. The purchase price was not disclosed due to the highly competitive nature of Williston Basin leasing activities. The acquisition, which closed on April 2, 2010, was funded through the Company's available cash balances

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