2009-08-04-2009-07-01

Farm-in to 100% of 28 gross sections (17,920 acres) of mineral rights near CREEnergy project in AB.

Kodiak Energy Inc., Calgary, (Toronto Venture: KDK; OTCBB: KDKN) subsidiary Cougar Energy Inc. has farmed out 100% of approximately 28 gross sections (17,920 acres) of mineral rights in the immediate vicinity to the CREEnergy project in Alberta with a private company. CREEnergy Oil and Gas Inc. is the authorized agent of the Peerless/Trout Lake First Nation and Alberta Cree Nation, which entered a joint venture with Kodiak to develop aboriginal lands. Estimated production potential from the project is 3,000 to 5,000 barrels of oil per day within five years. Cougar CEO Bill Tighe says, "We are excited by the opportunity this farm-in agreement brings to Cougar and the CREEnergy project. With these lands being in the immediate area to the CREEnergy project, this enables Cougar to have a concentrated development approach to the project. This approach allows for reduced overall development costs and increases the potential reserves base in the area. The controlled royalty rates and close proximity to two natural gas sales pipelines within the farm-in lands further enhances the economics for the project, even at depressed natural gas prices." Cougar Energy has operations in north-central Alberta and the Lucy shale gas project in the Horn River Basin in northeastern British Columbia.