DENVER (AP) -- Kodiak Oil & Gas Corp. said Monday that oil and natural gas production jumped more than fivefold in the fourth quarter, though it fell short of company forecasts because of mechanical problems at some of its wells.
The Denver energy company said its wells in the Williston Basin of North Dakota produced an average of 7,195 barrels of oil equivalent per day in the final three months of 2011. That's up from the 1,783 barrels produced in the same period of 2010, but down from company estimates of between 7,500 and 8,000 barrels per day.
For the full year, Kodiak said it produced an average of 3,922 barrels of oil equivalent per day, more than triple the rate from 2010 but down from previous estimates of between 4,500 and 5,000 barrels per day.
Kodiak said that it experienced problems at six wells during the fourth quarter that led to production delays. Those wells are expected to be fixed and back online in the first half of the year. A shortage of service equipment also led to production delays at other wells, the company said.
During 2011, Kodiak more than tripled its proven reserves to an estimated 39.8 million barrels of oil equivalent. The company expects to boost production even more in 2012 to between 22,000 and 24,000 barrels of oil equivalent per day.
Shares fell by 23 cents, or 2.5 percent, to $8.81 in morning trading.