CALGARY, ALBERTA--(MARKET WIRE)--Apr 27, 2006 -- Kodiak Energy, Inc. (OTC BB:KDKN.OB - News), is pleased to announce that the company has signed a letter of intent ("LOI") with Reibanc USA, Inc., for 22% of a heavy oil project in the Unita Basin in Utah.

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Kodiak will spend $2,000,000.00 to cover the costs of preliminary engineering , geological work, reports and studies on the Utah assets. This work should take 18 to 24 months to complete. Upon completion of these studies and work, Kodiak will issue $2,000,000 payable in common shares of the company to Reibanc USA, Inc. When detailed design, construction and operations commences Kodiak will pay its proportionate share of the costs of the project.

The leases are estimated to contain a drill proven heavy oil sand reserve of 100 million barrels and a probable heavy oil sand reserve of 700 million barrels.

The gravity of Utah heavy oil ranges from 8 degrees to 14 degrees API, which is comparable to that of the Athabasca oil sands of Alberta. Recent improvements in handling and refining heavy oil are expanding its marketability. Specifically, the Utah heavy oil has an important quality advantage, a sulphur content of only 0.4% to 0.7%, compared to a typical sulphur content of 4.8% for Athabasca heavy oil, that will make it easier to upgrade and to market.

Uinta Basin Reserves

The oil sands deposits in the Uinta Basin of central and eastern Utah have been known for over 100 years. Modern day exploration of these deposits began in 1956 and continued until 1982 when the declining oil price terminated activity. During the 1956 to 1982 period, industry exploration of a large oil sand deposit defined a reservoir with drill-proven heavy oil reserves of 100 million barrels and probable additional reserves of 700 million barrels. The deposits lie at a depth of less than 1,000 feet below the surface in thick, porous sandstone beds extending over more than 20 square miles. Core drilling of the Rimrock sandstone of the Mesaverde formation was carried out by several major oil companies.

The United States Department of Energy (DOE) conducted extensive pilot production projects on the Uinta heavy oil deposit in the period 1975 to 1978. The DOE performed two successful reverse-combustion projects, in which the recovery of heavy oil was 25% of the original oil in place (OOIP). During the 1979 to 1982 period, the DOE developed a nine well pilot project that used in-situ combustion with vertical production wells. This pilot recovered 40% of the OOIP. Engineers estimate that the use of horizontal production wells would have raised recovery substantially.

Included in the LOI are terms for other projects and acquisitions in the heavy oil sector. These projects are currently under negotiation.

Kodiak Energy, Inc., is a Calgary based Oil and Gas company focused on creating a portfolio of domestic low risk high impact assets that offer immediate production and cash flow.

This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the Company's proposed oil and gas related business. The Company's business is subject to various risks, which are discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). The Company's filings may be accessed at the SEC's Edgar system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such a statement.

     Contacts:
     Kodiak Energy, Inc.
     Mark Hlady
     CEO
     (403) 262-8044