Jolly Ranch Quarterly Production Update (8279A)
February 08 2011 - 2:00AM
UK Regulatory
TIDMHAWK
RNS Number : 8279A
Nighthawk Energy plc
08 February 2011
8 February 2011
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Jolly Ranch Quarterly Production Update
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), in line with the commitment made in
the recent Strategic Review announcement, gives its first quarterly
production update which covers the quarter ended 31 December
2010.
In Q4 2010 net production totalled 3,086 barrels of oil, a
reduction on Q3 (4,092 barrels) due to the increased number of
work-overs and recompletions in the period, in line with the
Company's current work programme.
Production in Q1 2011 to date is expected to have been broadly
in line with the level seen in December 2010 as the work programme
of completions and recompletions progresses. A full production
update for Q1 2011 is expected to be released before the end of May
2011.
Update on Production
The production figures below are presented net of applicable
Colorado State Taxes and Royalty payments to the landowners. The
figures for the quarter ended 30 September 2010 are presented for
comparison.
Q3 2010 Q4 2010
------------------- -----------------
July 1,702 October 1,021
----------- ------ --------- ------
August 1,083 November 1,076
----------- ------ --------- ------
September 1,307 December 989
----------- ------ --------- ------
Total 4,092 Total 3,086
----------- ------ --------- ------
These figures should not be used to calculate a bopd figure as
the wells which are predominantly on test, are intermittently taken
offline for routine maintenance, modifications to pumping
equipment, weather related conditions, workovers, recompletions or
completion in new zones. As the number of wells increases the
effect of individual wells being taken offline will have less
effect on the overall production figures.
The main objective of the current programme, as previously
stated, is to establish the optimum completion and stimulation
technique that is most applicable in each of the key interbedded
sub zone objectives within the Atoka and Cherokee shale formations,
and thereby increase production and reserves.
Tim Heeley B.Eng (Hons) a member of the Society of Petroleum
Engineers, Fellow of the Geological Society of London and a
Chartered Energy Engineer, who is CEO of Nighthawk and has over 14
years of experience in the hydrocarbons industry, has approved the
technical information contained in this announcement.
Enquiries:
Nighthawk Energy plc 020 3405 1982
Tim Heeley, Chief Executive +1 720 344 5154
Mike Thomsen, Executive Chairman
--------------------------------- ----------------------------------------
Westhouse Securities Limited 020 7601 6100
Tim Feather tim.feather@westhousesecurities.com
Matthew Johnson matthew.johnson@westhousesecurities.com
--------------------------------- ----------------------------------------
Matrix Corporate Capital LLP 020 3206 7000
Louis Castro louis.castro@matrixgroup.co.uk
James Pope james.pope@matrixgroup.co.uk
--------------------------------- ----------------------------------------
Financial Dynamics 020 7831 3113
Ben Brewerton ben.brewerton@fd.com
Ed Westropp edward.westropp@fd.com
Notes to editors
Nighthawk is a focused oil and gas production and development
business with assets onshore USA.
The Company holds a 50% working interest in a shale oil project
in Colorado called the Jolly Ranch Group project ("Jolly Ranch").
Running Foxes Petroleum Inc. ("Running Foxes"), holds the remaining
working interest and is the operator of the project; comprising the
Jolly Ranch, Middle Mist and Mustang Creek areas, covering
approximately 410,000 gross acres of Lincoln, Elbert and Washington
Counties, Colorado.
Jolly Ranch lies within the southeast flank of the
Denver-Julesburg Basin, a major mid-continent hydrocarbon producing
basin. The source of the produced hydrocarbons is the black organic
shales that are interbedded with siliclastic and carbonate rocks.
The shales at Jolly Ranch are within the oil generation window and
there is reasonable certainty of reservoir and source rock
continuity throughout the project area.
To date, 19 wells of 7,500-8,000 feet have been drilled on a
core 50,000 acre area by Nighthawk and Running Foxes, all of which
have encountered multiple pay horizons.
The current work programme involves various testing and fraccing
procedures on numerous shale target formations to determine the
optimum production plan and also gain a greater understanding of
this non-conventional play. In addition to testing, Nighthawk's
main efforts have been focused on proving up the extent of the
asset to help establish the wider project value.
In January 2011 Schlumberger Data & Consulting Services
("Schlumberger") completed an independent reservoir simualtion
model of the core Craig Ranch area. The model consisted of detailed
areas of the Craig Ranch project area, totalling approximately
3,200 gross surface acres, and assessed the likely long-term
production behaviour of the Marmaton, Cherokee and Atoka horizons.
The simulation concluded that there were approximately 30,000
barrels of oil in place per acre in the Cherokee and Atoka shale
horizons and the average model area recovery rate was 7.5% on
40-acre spacings with vertical wells. Schlumberger has previously
stated that the regional continuity of the formations is such that
the resources in place are likely to be laterally continuous across
the total acreage.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAXAXEDEFEFF
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Jul 2023 to Jul 2024