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Summary
Kodiak acquired 100% Working Interest of 53,687 acres through the Thunder River acquisition
Kodiak is one of the largest mineral rights holders in the area
- The additional land acquired by Kodiak in May 2008 is close to the Sheep Mountain Pipeline, which transmits CO2 for enhanced oil recovery (EOR) to the Permian Basin area located in southeastern United States
The New Mexico play consists of:
Developing a large CO2 resource with commercial volumes in existing well tests
Secondary recoveries from "old" oil positions in the Permian Basin
- CO2 is used for enhanced oil recovery (EOR) projects in mature fields
- These are projects where additional reserves can be recovered or production can be prolonged after initial recovery methods have been used
- In many situations, production can be "revived" or enhanced through the injection of CO2 into the reservoir and essentially forcing the oil to the surface through the well bore
- EOR can increase production efficiency and can prolong the economic life of older fields by as much as 30 years
Potentials for new oil and gas and helium on the project properties
- Helium is used in the medical (magnetic resonance), science (research and mass spectroscopy), technology (fiber optics and microchip production) and fabrication (welding) industries -- it is a very stable, non-reactive and non-flammable gas
- In addition, NASA uses large amounts of helium to pressurize space shuttle fuel tanks
- Helium is non-renewable, irreplaceable, and there is no known method to synthetically create or manufacture it
- Existing supplies of helium are becoming increasingly costly
Kodiak drilled and cased 3 wells in 2008
- The formations of Santa Rosa, Yeso, and Glorieta were perforated and flow tested
- The test results identified CO2 concentration quality from approximately 98.4% to 99.5%
- Trace amounts of helium were detected
A 35 mile, 2D high resolution seismic program was completed in April 2008 and enabled the mapping of the probable long term development for the area
Management Discussion of New Mexico Properties - Sept 2008 (PDF)
Surface Geology (PDF)
Certain documents available on this website may contain the terms "prospective resources". The Company advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the resources in this category will ever be converted into reserves. In addition, "prospective resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an prospective resource will ever be upgraded to a higher category. Under Canadian rules, estimates of prospective resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a "preliminary assessment" as defined under National Instrument 51-101. Under US rules, Investors are cautioned not to assume that part or all of a prospective resource exists, or is economically or legally recoverable.
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Last Updated Sept 22, 2009 |
