KOG Operational Update, September, 2010

Bottom line: KOG is still testing the production potential in the acreage it owns. If these wells "hit," and we should know by the end of the year, watch the share price pop.

From the KOG "investorroom":

KOG currently operates a two-drilling-rig program in the Williston Basin. One rig is currently in Dunn County and the other is in McKenzie County.

Basin-wide, KOG has five operated wells awaiting completion. One should be completed by the end of September; a second one by mid-October. The remaining three awaiting completion are part of a four-well pad currently drilling in Dunn County (the only driller I know who has four-well pads is CLR -- the Eco-Pad, but there may be others I am not aware of).

KOG projects six wells to be completed in the fourth quarter. The five long laterals will be completed with 24-stage fracturing and the sixth, a short lateral, will be completed with 12-stage fracturing. Four wells target the Bakken formation; two target the Three Forks Sanish.

Since commencing Williston Basin drilling activities in November, 2008, KOG has drilled 19 wells, has completed 14 wells, and is currently drilling two.

Queen's "Rockin' the Bakken" Winter Tour, Their Homage to the North Dakota Rough Neck:

We Will Rock You, Queen (Note for newbies: just a little humor. As far as I know, Queen did not visit the Bakken) 
Current wells, Dunn County:

Moccasin Creek 13-34-28-1H, long lateral, 22 stage, IP of 1,906; 17k in first 19 days. This well was offset from MC 13-34-28-2H which recorded KOG's strongest 30-day production number from any well since KOG began drilling in November, 2008. It's 24-hour IP was 2,055; it was a truncated long lateral and was fractured with 15 stages. The first 30 days oil production of this well was 38k, an average of 1,259 boed for the first 30 days.

Two Shields Butte 14-21-33-15H, a long lateral, reached total depth in early September. This was the third well drilled from the current four-well pad and is waiting completion. The wells drilled from this pad are significant in that one of the laterals was drilled within 1,350 feet of an existing lateral as part of ongoing tests to evaluate the optimal well bore density within 1,280-acre drilling units.

In addition, one of the wells was drilled into the TFS, 65 feet below the Bakken formation wells, and the lateral section is separated from one of the Bakken wells by 700 feet. All four wells from this pad should be completed by the end of 2010.

Current wells, McKenzieCounty:

There are four wells of interest. The Grizzly Federal 1-27H-R, a long lateral, 24-stage fracturing, is currently being completed.

The Grizzly 13-6-RH was re-entered (the press release does not elaborate); it's a short lateral expected to be completed in mid-October.

KOG spudded the Koala 9-5-6-5H in early September; it will be a long lateral to test the Middle Bakken formation. This is the first KOG well drilled in its Koala Project area and will be followed by Koala 9-5-6-5H3, another long lateral to test the productive potential of the TFS formation. Completion is expected by end the end of 2010.