Playing in a market that has been on a remarkable ride can start to become a dicey move at some point. The market will need to correct for overbought conditions and other structural affects eventually. “Eventually,” may not be tomorrow or the next day, but it will come. Starting late on the ride is a risk, as is not getting off the ride too early. Those who can pick beneficial entry and exit times will maximize profits, not just take profits as the correction occurs.
Kodiak Energy Inc., an oil and gas exploration company, works to find and develop oil and gas leases along the Rocky Mountain range. It is working to exploit lease properties from New Mexico to the “little Chicago” lease region in Western Canada. The company is quickly making moves within its lease operations and is aggressively working to bring oil and gas to market as quickly as it can.
Toward the objective of getting product to market, the company’s management has signed a binding letter for an operational lease – with Brink Energy, a private operator – to secure value and other legal issues before sale and price/conditions are ratified by Brink Energy investors. Although time lines are approximate at this point, Brink investors anticipate voting in mid-August on a final deal.
Financing of the company appears to be on track. A recent private placement in Canada raised approximately $3 million at $2.55 per share. Warrants were also issued. Overall, the company expects to use these new funds for operations at its New Mexico sites and general administrative purposes. Kodiak Energy, and its subsidiaries in Montana and Utah, may be making an energy move a bit late in the oil and gas markets of the moment, but they are definitely finding progress and support along the way.
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