Q2 Production and Operations Update (6087L)
August 03 2011 - 2:00AM
UK Regulatory
TIDMHAWK
RNS Number : 6087L
Nighthawk Energy plc
03 August 2011
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Jolly Ranch Q2 2011 Production and Operations Update
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), is pleased to provide its quarterly
production update, covering the quarter ended 30 June 2011 and an
update on the ongoing recompletion and completion activity.
Highlights
-- Q2 production of 3,079 barrels net to Nighthawk (net of tax
and royalty) (Q1: 2,062 barrels net to Nighthawk)
-- On-going work programme continues to identify key horizons
for future project development
Update on Production
In the Q1 2011 production update we stated that Q2 production
was expected to be higher due to increased workover activity and
improved operational efficiencies to maintain production from the
long-term test wells, namely the Craig 4-4 and Craig 16-32.
The production figures below are presented net of applicable
Colorado State Taxes and Royalty payments to the landowners. The
figures for the quarter ended 31 March 2011 are presented for
comparison.
Q1 2011 Q2 2011
------------------------ --------------------
Bbls net to Bbls net to
Month Nighthawk Month Nighthawk
---------- ------------ ------ ------------
January 624 April 831
---------- ------------ ------ ------------
February 751 May 1,225
---------- ------------ ------ ------------
March 687 June 1,023
---------- ------------ ------ ------------
Total 2,062 Total 3,079
---------- ------------ ------ ------------
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
impact on the overall production figures.
The production from the Craig 16-32 continues to vary on a
day-to-day basis and is currently averaging in excess of 45 bopd
(gross) in Q3 to date, with in excess of 70 bopd (gross) on certain
days, and is helping to establish a decline curve for the Cherokee
A.
Update on Completion Operations
The previously announced completion and recompletion work
continues. Work to further optimise costs and ensure reliable
production is on-going. Water and electricity lines have been laid
to the Jolly 2-1, 16-1 and 10-5 wells.
Jolly Ranch 2-1
The 2-1 well has been added to the current programme and was
completed in the Cherokee A in late May 2011. The well was recently
placed on pump and early volumes have indicated that the casing is
likely to have a leak, which is inhibiting production. This will be
remedied before being placed back on pump.
John Craig 7-2
The John Craig 7-2 was re-entered in late May 2011 to inspect
the Cherokee A which had been previously fracced. Following
analysis the fracture was shown not to have penetrated the Cherokee
A and attempts were made to acidise the formation to see if
production could be stimulated. Whilst the horizon produced some
oil it was not consistent enough to place on pump. However, the
Fort Scott, which sits above the Cherokee A, was subsequently
tested without any stimulation and produced sufficient oil for the
well to be placed on pump to monitor the results.
Given the potential of the Cherokee A in this area; the 7-2 well
sits approximately three miles to the North West of the Wiepking
Fullerton Aloha Mula #1 which has produced over 220,000 barrels
from a vertical Cherokee A well in the past two years, further
drilling will be actively considered in this area.
Craig 15-34
In late June 2011, the 15-34 was tested in the Cherokee A and
had oil shows during swabbing. The well was placed on pump in early
July 2011.
Craig 7-34
The 7-34 well is currently being acidised in the Cherokee A.
Further activities intended to enhance production from the
following wells are now planned and being undertaken. The ultimate
objective of this recompletion programme is to establish the
optimal method of completion and the objective horizons in which
they are applied in order that future drilling is optimally
undertaken.
Well Completion Activity
Jolly Ranch 4-13 Atoka - multiple recompletions
Craig 12-33 Lower Atoka - acidise existing perforations
Cherokee A - new perforation and acidisation
Craig 10-28 Upper Atoka - multiple new perforations and
acidisations
Fort Scott - multiple new perforations and
acidisations
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 16
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
Richard Swindells, Chief Financial
Officer
Mike Thomsen, Executive Chairman
Westhouse Securities Limited 020 7601 6100
Tim Feather tim.feather@westhousesecurities.com
Matthew Johnson matthew.johnson@westhousesecurities.com
Financial Dynamics 020 7831 3113
Ben Brewerton ben.brewerton@fd.com
Ed Westropp edward.westropp@fd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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