TIDMHAWK
RNS Number : 4854Q
Nighthawk Energy plc
30 November 2016
30 November 2016
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Company Update
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), announces an update to current
production levels, water flood injection wells, hedging and Rule 9
waiver.
Production Update
The Company's production continues to remain strong through the
first ten months of 2016. The effects of a natural water drive in
the Arikaree Creek field, along with the efforts from the
production operations team, have kept 2016 production relatively
flat for the year to October.
Gross and net* production, in barrels, for the first ten months
of 2016 is summarised below.
Monthly Daily Average
-------------------------------------- ------------------------------
Gross Net Gross Net
2016 2015 2016 2015 2016 2015 2016 2015
-------- -------- -------- -------- ------ ------ ------ ------
January 43,961 63,606 36,017 52,183 1,417 2,052 1,162 1,683
February 40,378 55,976 33,053 45,843 1,407 1,999 1,153 1,637
March 42,720 59,382 34,942 48,688 1,314 1,915 1,078 1,570
April 40,704 59,919 33,319 49,136 1,357 1,997 1,113 1,638
May 40,780 59,406 33,410 48,710 1,302 1,916 1,068 1,571
June 40,248 54,556 32,916 44,646 1,356 1,815 1,112 1,488
July 43,045 56,116 35,162 46,018 1,382 1,810 1,133 1,484
August 42,759 53,863 34,885 46,018 1,379 1,738 1,125 1,484
September 38,551 48,982 31,459 40,161 1,285 1,633 1,049 1,339
October 39,672 49,724 32,246 40,769 1,280 1,604 1,040 1,315
YTD 412,818 561,530 337,409 462,172 1,354 1,847 1,106 1,520
======== ======== ======== ======== ====== ====== ====== ======
*Net production is based upon Nighthawk's Net Revenue Interest
of approximately 82%
Operations Update
As notified by the Company on 11 November 2016, Nighthawk has
received a permit to commence injection of water into one of the
two planned water flood injection wells. The second injection well
is in the final stages of preparation and the Company expects the
mechanical integrity test to be completed in early December
2016.
Hedging Update
The Company executed an additional financial hedging instrument
on 22 November 2016. The instrument, a costless collar, establishes
a $47 floor and a $52.75 ceiling for a total of 96,000 barrels of
2017 production. The Company has a further 17,350 barrels of 2017
production hedged at $75.30. This hedging strategy allows the
Company to manage the commodity risk around oil prices. Additional
volumes for 2017 are expected to be hedged as oil prices improve
and the Company's water flood volumes come on line.
Waiver of Rule 9 of the UK Takeover Code
Further to its announcement of 30 September 2016, the Company
continues the process of preparation of a Circular in relation to a
waiver of Rule 9 of the Takeover Code. A further announcement will
be made in due course.
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.
Enquiries:
Nighthawk Energy plc
Rick McCullough, Chairman +1 303 407 9600
Kurtis Hooley, Chief
Financial Officer +44 (0) 20 3582 1350
Stockdale Securities
Limited +44 (0) 20 7601 6100
Richard Johnson
David Coaten
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFMMZMZLFGVZZ
(END) Dow Jones Newswires
November 30, 2016 02:01 ET (07:01 GMT)
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