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Friday, 05 December, 2008, 16:50 GMT | more >>

Kodiak snaps up Thunder River assets



By Upstream staff 

Canada’s Kodiak Energy said it had concluded a binding agreement to acquire 100% of the holdings of Alberta-based explorer Thunder River Energy for a purchase price of up to $27 million.

Kodiak will pay $1 million in cash and $26 million in common shares issued at the previously agreed price of $2 per share.

The acquisition comprises Thunder River’s two major assets – the Little Chicago exploration licence in Canada’s North West Territories and 95% of a lease in New Mexico.

Little Chicago, or EL 413, is estimated to hold a potential of up to 1 billion barrels of oil and 600 billion cubic feet of gas.

The 2007 winter seismic recently completed by Kodiak has identified multiple new structures and potential drill targets in the area.

The New Mexio lease has natural gas potential and commercial volumes of carbon dioxide estimated at 587 billion cubic feet, Kodiak said.

An aggressive development programme will now be initiated to exploit these major assets, the company added.


Thursday, 12 July, 2007, 06:05 GMT  | last updated: Thursday, 12 July, 2007, 07:23 GMT

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