Nighthawk Energy plc Production and Drilling Update (8984N)
September 13 2013 - 2:00AM
UK Regulatory
TIDMHAWK
RNS Number : 8984N
Nighthawk Energy plc
13 September 2013
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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