Williston Basin in Western North Dakota and Eastern Montana
As of December 31, 2012, Kodiak owns and controls approximately 154,000 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 2012, the Company invested approximately $810 million for the drilling of 71 net wells and completion of 62.6 net wells. A total of $618.0 million of the Capex was allocated to operated wells and $146.0 million was allocated to non-operated activities. Kodiak’s sales volumes for 2012 totaled 5.3 million barrels of oil equivalent (MMBoe). Year-end estimated proved reserves were 94.9 MMBoe with a pre-tax PV-109 value of $1.9 billion.
The Company’s estimated Capex budget for 2013 is $775.0 million which is expected to fund the drilling of 75.0 net wells. The Capex anticipates investing $600.0 million to drill and complete 61.0 net operated wells and $140.0 million allocated to non-operated Capex through participating in an estimated 14.0 net non-operated wells. Kodiak expects to fund its 2013 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 2013, substantially all of the estimated $775.0 million Capex is allocated to Williston Basin oil and gas operations.