Nighthawk Energy plc Drilling Update (0372Q)

TIDMHAWK

RNS Number : 0372Q

Nighthawk Energy plc

01 November 2012

1 November 2012

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Drilling Update

Knoss 6-21 well to be brought onto commercial production

Nighthawk, the US focused shale oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on drilling at its 100% controlled and operated project at Jolly Ranch in the Denver-Julesburg Basin, Colorado.

Highlights

-- The Knoss 6-21 well, the third well in the current drilling program, to be brought onto commercial production during November

-- Successful completion of the 6-21 Cherokee formation has indicated oil production potential above 200 barrels per day for the well

   --    Steamboat Hansen 8-10, the fourth well in the program, successfully drilled, logged and cased 
   --    Drilling rig now on location at the Whistler 6-22 well, the fifth well in the program

Knoss 6-21

(Nighthawk 100% working interest ("WI")/80% Net Revenue Interest ("NRI"))

The Knoss 6-21 well has been successfully completed in the Cherokee formation using the same completion techniques that brought the successful John Craig 6-2 well on-stream in September 2012. This involved perforation of three intervals of the Cherokee and mild acidisation of the formation under moderate pressures.

The well, like many in the Denver Basin, is not sufficiently pressured to induce natural flow, but each of the three perforated intervals successfully produced a mix of oil and water during completion operations, with this production being measured and monitored over a continuous period of ten hours or longer on each interval.

The average oil/water ratio was around 25/75 for the combined formations and the total amount of oil recovered was over 180 barrels indicating oil production potential under pumping conditions above 200 barrels/day for the well.

Storage and processing facilities will be installed and the well will be put on pump with a target for commercial production commencing during November. An update will be provided to the market once the well has been on commercial production for a sustained period.

Further oil-bearing zones, in addition to the Cherokee, have been identified from the open-hole logs and have been left for future completion.

Steamboat Hansen 8-10

(Nighthawk 100% WI/80% NRI)

The Steamboat Hansen 8-10, the fourth well in the drilling program has been successfully drilled to its target depth of 8,500 feet, well below the Cherokee formations. The well has been logged and cased.

This is the most northerly well drilled on Nighthawk acreage, approximately 25 miles north of the 6-2 well and nearly 40 miles north of the 6-21 well. Based on analysis of the broader geology and the 3D seismic covering the specific target structure for the 8-10, it was anticipated that deeper Mississippian formations might offer potential in addition to the Cherokee and Marmaton formations.

The open-hole logs from the Steamboat Hansen 8-10 have identified a potential oil-bearing formation at around 8,000 feet. Nighthawk is currently designing the optimum approach to complete and test this horizon. The logs also show positive signs for the primary target of the Cherokee and Marmaton shale formations but completion work on these will be on hold whilst this deeper structure is properly evaluated.

Whistler 6-22

(Nighthawk 100% WI/80% NRI)

The drilling rig is now on location at the Whistler 6-22 site and drilling is well underway. This is the final well in the 2012 drilling program and is targeting similar 3D seismic defined structures and zones to the Steamboat Hansen 8-10 well.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"The results from the Knoss 6-21 well are very encouraging, particularly as we have now proved up our completion approach in the Cherokee successfully on two wells which are 15 miles apart. With two wells out of the first three drilled soon to be in commercial production, we are making good progress in both stepping up our oil production and in demonstrating the breadth and consistency of opportunity across our total acreage.

"The log analysis from our northernmost well is intriguing, and will require additional consideration before we can confirm our completion strategy. It has however further demonstrated the value of our detailed geo-science evaluation in identifying the 'sweet-spots' in our acreage."

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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