Nighthawk Energy plc Production and Drilling Update (8984N)

TIDMHAWK

RNS Number : 8984N

Nighthawk Energy plc

13 September 2013

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Production and Drilling Update

August average oil production sets new record of 1,661 barrels per day

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

Highlights

   --     Record average gross oil production in August 2013 of 1,661 barrels per day ("bbls/day") 
   --     Average realized price in August 2013 of $97 per barrel 
   --     Further development drilling at Arikaree Creek expected to commence in mid-October 2013 
   --     Q4 2013 drilling program to include both production and exploration wells

Production

Gross average oil production in August 2013 was 1,661 bbls/day, a record month for Nighthawk. Production from the Arikaree Creek oilfield increased over July 2013 levels with the Silverton 16-10 and Snowbird 9-15 wells contributing a combined average of 257 bbls/day. Production from Snowbird 9-15 was impacted by engine problems causing some downtime during the month. A new engine is expected to be installed in September 2013.

The Company is also planning a program of preventative maintenance and pressure testing at Arikaree Creek in September 2013 in preparation for the coming winter. This will result in some further downtime during the month. Once this program is completed, Nighthawk anticipates a return to growth in monthly production during the fourth quarter.

Drilling

A number of new drilling permits are being progressed, and subject to final confirmation of these and the drilling rig contract, Nighthawk anticipates further development of Arikaree Creek will commence in mid-October 2013, ahead of the Company's initial expectations. The first two planned wells in the program are in the same structural block as the Silverton 16-10 and Snowbird 9-15 wells.

Subject to successful completion of these two development wells, the Company intends to retain the drilling rig for an expanded program in Q4 2013 that is expected to include exploration wells as well as further development wells at Arikaree Creek. The Company is also seeking a permit to drill a salt water disposal well at Arikaree Creek which, when operational, will substantially reduce operating costs.

With the earlier than anticipated resumption of drilling at Arikaree Creek, and the substantial amount of new information that will be available from the new wells, work on the Competent Person Report ("CPR") will now continue through the fourth quarter. In particular, Nighthawk plans to core one of these wells providing valuable additional information for the CPR and the processing and analysis of this core information will take two to three months.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"We intend to continue the rapid pace of development at Arikaree Creek and the early availability of a drilling rig is welcome news. With our recent acquisition and analysis of new 2D seismic lines, we anticipate including some exploration drilling in our Q4 2013 program, as well as adding further producing wells at Arikaree Creek."

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.

- Ends-

Enquiries:

 
Nighthawk Energy plc 
 Stephen Gutteridge, Chairman 
 Richard Swindells, Chief Financial 
 Officer                                                       020 3582 1350 
Westhouse Securities                                           020 7601 6100 
 Limited                                richard.baty@westhousesecurities.com 
 Richard Baty                             ian.napier@westhousesecurities.com 
 Ian Napier 
Investec Bank plc                                              020 7597 4000 
 Chris Sim                                          chris.sim@investec.co.uk 
 George Price                                    george.price@investec.co.uk 
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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