Kodiak Oil & Gas Rally Continues After 40% Bounce Off Summer Lows And Don’t Expect It To Slow Anytime Soon $KOG
Turn Key Oil a long time commentator on Bakken Shale oil & gas stock $KOG has never been one to pass up praise. We were definitely beating the drum over the summer as it bounced off the $7 mark and again when Billionaire Ken Griffin increased his stake. Now that we are up 40% from the bottom we believe the case is only getting stronger.
Kodiak Oil & Gas announced second-quarter earnings and showed that it has been successful in improving revenues and earnings so far this year. Total revenues at $85 million were up considerably over the comparable figure of $22 million on a year-on-year basis. Total operating expenses rose to $59.5 million from $13.1 million year on year and second quarter net income rose to $93 million from $14 million a year on year.
The main reason for the rise in net income was gains on commodity derivatives which came to $95.5 million against $4.85 million in the same quarter of the previous year. The increase in revenue was mainly due to increased volumes of production and the company expects operating cash flow to increase because of the recently improved rate of production. Total second quarter production increased to 1.155.4 MBOE from 962.6 MBOE year on year mainly because of operations in the Williston Basin.
Kodiak currently possesses more than 234,000 gross acres in the Williston Basin and 188 gross wells in production with a focus on the middle Bakken and Three Forks formations. The company drilled and completed 14 wells in the second quarter, and two of these are producing over 1,180 BOE/day, two over 1,350 BOE/day and one over 1,500 BOE/day in the first month of operation. The company expects most of its wells to have pipeline access for transporting oil by the end of the year. The company’s portfolio includes almost 270,000 gross acres located between the Green River Basin and the Williston Basin.
Read Full Article Here: http://turnkeyoil.com/2012/10/16/kodiak-oil-gas-rally-continues-after-40-bounce-off-summer-lows-and-dont-expect-it-to-slow-anytime-soon-kog/