Williston Basin in Western North Dakota
As of March 2014, Kodiak owns and controls approximately 173,000 net acres in this geologic basin. Our primary target within the Williston Basin is the Bakken Pool consisting of the middle Bakken and Three Forks formations.
During 2013, the Company invested approximately $994 million for the drilling of 87.8 net wells and completion of 99.6 net wells. Kodiak’s sales volumes for 2013 totaled 10.6 million barrels of oil equivalent (MMBoe). Year-end estimated proved reserves were 167.3 MMBoe with a pre-tax PV-10% value of $3.5 billion.
The Company’s estimated capex budget for 2014 is $940 million which is expected to fund the drilling of 100 net wells. Included in the 2014 capex budget is $50 million for infrastructure build-out and small acreage acquisitions. Kodiak expects to fund its 2014 capital program through existing cash on hand, expected cash flows from operations, and its borrowing capacity expected to be available under the Company’s credit facility.
For 2014, all of the estimated $940 million capex is allocated to Williston Basin oil and gas operations.