LONDON, Sept. 26, 2014 /PRNewswire/ -- Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on production and drilling at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.
Highlights
- Average gross oil production from all wells in the calendar month of August 2014 was 1,694 barrels per day ("bbls/day")
- Blackcomb 5-14 well at Arikaree Creek successfully tested good commercial oil flow rates and will be brought into production
- Blackcomb 12-14 well commenced oil production on 1 September 2014
- Success at Blackcomb wells opens up additional potential in the southern lobe of the Arikaree Creek oil-field
- Drilling rig currently on location at Salen 14-35 exploration well
- 3D seismic program completed around Snow King discovery
(Nighthawk has an average Net Revenue Interest* of approximately 81.5% in the gross oil production)
Production
Average gross oil production from all wells in August 2014 was 1,694 bbls/day. As previously indicated, production was affected by planned pressure build up tests and routine maintenance work at Arikaree Creek. Further routine pressure build up tests and maintenance work have been carried out in September 2014 and additional work is planned before the end of the month. The wells affected include the Big Sky 4-11 and the Snow King 13-33.
The Blackcomb 12-14 well at Arikaree Creek commenced production on 1 September 2014.
The Blackcomb 5-14 well at Arikaree Creek was drilled to a depth of 8,365 feet and successfully encountered the Mississippian Spergen oil pay zone. The pay zone is substantially thicker than the equivalent zone in the Blackcomb 12-14 well and initial testing showed good commercial oil flow rates with no water content. The well will be brought into production early in October 2014.
Drilling
The drilling rig has completed the required regulatory work at the Jackson Hole 1-32 well and is currently on location at the Salen 14-35 exploration well. The Salen location is north-east of Arikaree Creek and like the Jackson Hole 1-32 well, it is aimed at evaluating the trends in both the Pennsylvanian and Mississippian formations at a distance away from Arikaree Creek. The Company expects to gain valuable geological information from the well, which will assist in planning the broader development of Nighthawk's acreage.
The success of the Blackcomb 12-14 and 5-14 wells has opened up a number of new drilling locations in the southern lobe of Arikaree Creek and the drilling rig will move to one of these locations following completion of drilling and logging at the Salen 14-35 well.
The Company has completed the new 3D seismic shoot over the Snow King structure and processing of the data is underway. The Company anticipates moving the drilling rig to the Snow King area to commence a multi-well drilling program in the fourth quarter of 2014.
Stephen Gutteridge, Chairman of Nighthawk, commented:
"The initial flow results from the two Blackcomb wells have been better than anticipated and together with the logging data gathered we now see better than expected production potential in the southern acreage of Arikaree Creek. This is good news for our plans to restore production growth following a flat couple of months and we will move quickly to drill the new potential producing locations that have now opened up. With good potential for incremental production at both Arikaree Creek and Snow King, plus the possibilities of the planned horizontal well, the outlook looks promising."
Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
Definitions
*Net revenue interest (NRI) - Nighthawk's share of oil, gas, and associated hydrocarbons produced, saved, and marketed, after satisfaction of all royalties, overriding royalties, or other similar burdens on or measured by production of oil, gas, and associated hydrocarbons
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SOURCE Nighthawk Energy plc
