Nighthawk Energy plc Drilling Report (8059M)

TIDMHAWK

RNS Number : 8059M

Nighthawk Energy plc

21 September 2012

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Drilling Update

John Craig 6-2 well tests commercial oil flows

Nighthawk, the US focused shale oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on drilling at its 75% owned, operated project at Jolly Ranch in the Denver-Julesburg Basin, Colorado.

Highlights

   --    John Craig 6-2 well has tested commercial oil flow rates from the Cherokee shale formation 
   --    A continuous twenty-four hour flow test produced over 600 barrels of oil

-- Three further potential oil-bearing zones have been clearly identified in addition to further Cherokee targets, but have not yet been tested

   --    Work to put John Craig 6-2 onto permanent production is underway 
   --    Drilling of the Pike's Peak Williams 4-30 proceeding to schedule 
   --    These are the first two wells in a four well drilling program

John Craig 6-2

The John Craig 6-2 well was successfully drilled to a depth of 8250 feet. Drilling was completed on time and on budget, and the well was logged and cased ready for testing.

Data collected from the well includes mud-logs, samples and wire-line gamma ray and pulse neutron logs. This data has clearly identified significant oil shows, with good porosity, in the primary target Cherokee formation. Three additional potential oil-bearing formations have also been identified, all of which are at shallower depths than the Cherokee.

The well was perforated and acidised over a twelve foot section of the Cherokee formation with immediate results. The initial flow has been closely monitored and measured. The well has flowed under natural pressure, through a 1 inch choke, and has produced over 600 barrels of high quality oil over a continuous twenty four hour period. Whilst this does not necessarily reflect the potential short or medium term production rates, this is a highly positive result, significantly above the production rates required for commerciality. Work is now underway to bring the John Craig 6-2 onto permanent production and two loads of oil from the well have already been lifted. Nighthawk has a 100% working interest in the 6-2 well (80% net revenue interest).

Further Cherokee targets and the three additional potential oil-bearing zones will remain behind pipe during this initial production phase, and represent attractive, low-cost opportunities to enhance and extend future production from the well.

Pike's Peak Williams 4-30

Drilling of the Pike's Peak Williams 4-30, the second well in the drilling program, commenced on 14 September. This well is located 2.5 miles north-west of existing Nighthawk producing wells and will test the up-thrown side of a large, seismically defined, basement fault. The well has a planned target depth of 8000 feet and primary targets include the Cherokee and Marmaton formations, with a number of secondary targets.

Drilling is proceeding on schedule and is currently through 5300 feet. Nighthawk has a 100% working interest in the 4-30 well (80% net revenue interest).

Stephen Gutteridge, Chairman of Nighthawk, commented:

"The results from the John Craig 6-2 represent a very positive start to our new well drilling program, and the well is expected to significantly step-up our current production levels. We are delighted with the initial flow rates and we will update on sustainable flow levels once the well has been on production for a few weeks. The results are also early confirmation that our geo-science led development strategy to identify the 'sweet-spots' in the Cherokee resource play, coupled with relatively mild formation interaction, yields results. We are looking forward with increased confidence to the next wells in the program."

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 32 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.

- Ends-

Enquiries:

 
Nighthawk Energy plc 
 Stephen Gutteridge, Chairman 
 Richard Swindells, Chief 
 Financial Officer                                      020 3582 1350 
Westhouse Securities Limited                            020 7601 6100 
 Richard Baty                    richard.baty@westhousesecurities.com 
FTI Consulting                                          020 7831 3113 
 Ben Brewerton                        ben.brewerton@fticonsulting.com 
 Ed Westropp                        edward.westropp@fticonsulting.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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