DENVER, March 13 /PRNewswire-FirstCall/ -- Kodiak Oil & Gas Corp. (Amex: KOG - News), an oil and gas exploration and production company with assets in the Green River Basin of southwest Wyoming and the Williston Basin of North Dakota and Montana, today reported financial and operating results for the fourth quarter 2007 and full-year 2007.

2007 Financial Results

The Company reported a net loss for the year ended December 31, 2007 of $38.2 million, or $0.44 per basic and diluted share, compared with a net loss of $2.8 million, or $0.04 per basic and diluted share, for the same period in 2006. The 2007 net loss includes $34 million in non-cash charges related to an impairment of the carrying value of oil and gas properties. Net loss before the impairment charge for 2007, a non-GAAP measure, is $4.2 million, or $0.05 per share. No impairment charges were recorded in 2006.

Total revenues were a Company-record $9.3 million for the 2007 period versus approximately $5.0 million for the full-year 2006. Oil and gas sales increased 88% to approximately $7.8 million for the full-year 2007 on a 67% increase in year-over-year production volumes. Crude oil revenue accounted for approximately 86% of total 2007 oil and gas sales.

Adjusted EBITDA was $2.7 million for the full-year 2007, as compared to $947,000 for the same period in 2006. Kodiak defines Adjusted EBITDA as net income before interest, taxes, depreciation, depletion, amortization and accretion, non-cash stock-based compensation expense, impairment charges and gains or losses on foreign currency exchange.

Reconciliations of Adjusted EBITDA, a non-GAAP measure, to net loss are included in this news release and in the Company''s filing on Form 10-K. Additional disclosure regarding the Company''s use of Adjusted EBITDA are also included in the Company''s filing on Form 10-K.

Kodiak posted operating cash flow of $2.1 million as compared to operating cash flow in 2006 of $3.1 million.

Total assets were $74.3 million at year-end 2007, as compared to $113.8 million in the same period in 2006. The decrease in total assets is primarily attributed to the above-mentioned impairment charge. Stockholders'' equity was $68.3 million at December 31, 2007, as compared to $103.6 million at year-end 2006. The Company''s cash and cash equivalents position at year-end is $13.0 million, and it currently has no long-term debt.

General and administrative (G&A) expense increased to $7.3 million for the year-ended December 31, 2007, from $4.6 million for the same period in 2006. Included in the G&A expense for 2007 is a stock-based compensation charge of $2.5 million for options issued to officers, directors and employees, as compared to $1.5 million for the same period in 2006.

Oil and Gas Sales

Kodiak increased year-over-year sales by 67% to a Company-record 136,279 barrels of oil equivalent (BOE) as compared to 81,520 BOE in 2006. For the year, Kodiak grew natural gas sales by 71% to 200.2 million cubic feet (MMcf), as compared to 117.3 MMcf for last year. Oil sales volumes were up 66% to 102,914 barrels for 2007, as compared to 61,966 barrels in 2006. By commodity, crude oil constitutes 75% of the production base.

For 2007, the average gas price received decreased to $5.26 per thousand cubic feet of natural gas (Mcf), as compared to the $5.56 per Mcf received in 2006. Kodiak enjoyed an 18% uplift in the average price received for crude oil in 2007. The Company sold its oil for $65.72 per barrel for the year, as compared to the $55.52 per barrel received during 2006. Kodiak currently does not hedge any of its oil and gas production volumes.

During 2007, Kodiak invested $45.1 million for exploration and development of its leasehold, including $5.8 million for acreage acquisition and seismic. In 2007, Wyoming capital investment was $36.5 million, and $8.6 million was allocated for Williston Basin oil and gas activities. The Company drilled 12 gross wells (6.4 net) in 2007. Of these, five gross wells (3.8 net) have been completed, five (2.3 net) were dry holes and two (0.25 net) wells, which are non-operated, remained in progress at December 31, 2007. The Company now has working interests in 23 gross (14.7 net) wells, of which 16 gross (11.2 net) are Kodiak-operated wells. As of December 31, 2007, Kodiak owned or controlled approximately 152,430 gross and 98,162 net acres primarily in its core operating areas of the Green River and Williston Basins. Subsequent to the Devon Energy Corp. Agreement, (the Devon Agreement) announced on January 31, 2008, the Company currently owns or controls approximately 89,762 net acres in its core operating areas.

Fourth Quarter 2007

The Company reported a net loss for the three months ended December 31, 2007 of $1.3 million, or $0.02 per share, compared with a net loss of $1.4 million, or $0.02 per share, for the same period in 2006. Adjusted EBITDA for the fourth quarter 2007 was $599,000 as compared to $21,000 for the same period in 2006.

Oil and gas sales for the fourth quarter were $2.2 million versus $1.3 million in the same period in 2006. Total revenues were $2.3 million versus $1.6 million in the year-ago period. For the fourth quarter 2007, Kodiak posted operating cash flow of $1.4 million as compared to $3.5 million in the same period in 2006.