Now that oil and gas prices have retreated from unsustainable levels, oil and gas exploration and development companies have begun to step back and assess where their prospects for future development and profit lie. Some may sell percentages of leases while others may drill. Having data in hand to make longer term decisions will be a key element for smaller oil and gas companies going forward. Finding those companies, that have planned for the long haul, is the path to profit. Finding them is the trick.
Kodiak Energy Inc., a development stage oil and gas exploration company, works to develop and extract oil and gas primarily in the United States and Canada. The company is currently focusing its efforts on winter drilling opportunities in Canada.
Although the company has solid prospects in both the United States and Canada, it is currently focusing a majority of its effort on its “Lucy” northern British Columbia prospect. For the better part of a year, the company has been testing this prospect for the best way to tap indicated reserves. With a majority of results in, it feels that the prospect shows similarities to the Muskwa shale gas prospect and Barnett shale play in Texas.
Understanding that core testing is needed to solidify results, the company has filed with the government of Canada and received approvals to begin experimental drilling for comparative data along the edges of the known Muskwa and Horn River basin prospects. This data is a critical piece of information for the company as its general business strategy is directed at either ownership and production or sale in some form. For the moment, the company is eagerly awaiting colder temperatures to begin drilling work. From all indications, infrastructure construction should not be an issue with solid results due by early 2009, barring any difficulties.
The company is beginning to assess findings at its EL 413 site, as identified by the 2005 Chapman Report. This site has indicated shallow pools of oil with little gas opportunity. Moving forward, the company sees potential as it continues to assess its involvement. The company’s 79,000 acres of land in northeastern New Mexico has also shown solid potential with gas, CO2 and Helium indicated. 2D seismic readings indicate solid potential with the company assessing plans for development.
Although time will tell, Kodiak Energy has lined up several projects for exploitation. It has spent time testing and making sure that a solid opportunity exists before it commits its full resources. From all appearances, Kodiak is well positioned and on the verge of revenue generation and profit.
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