TIDMHAWK
RNS Number : 1248T
Nighthawk Energy plc
03 January 2017
3 January 2017
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, and hedging.
Production Update
Gross and net* production, in barrels, for the first eleven
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
November 33,315 46,581 26,990 38,108 1,111 1,553 900 1,270
YTD 446,133 608,111 364,399 500,280 1,332 1,815 1,088 1,493
======== =========== ======== ======== ====== ====== ====== ======
*Net production is based upon Nighthawk's Net Revenue Interest
of approximately 82%
Operations Update
As reported by the Company on 30 November 2016, Nighthawk
received a permit on 11 November 2016 to commence injection of
water into one of the two planned water flood injection wells. On
29 December 2016, the Company received a permit to commence
injection on the second well.
As reported by Nighthawk on 16 December 2016, the Company
reached a settlement with Cascade Petroleum LLC. One of the
provisions of the settlement was that Nighthawk was to complete an
up-hole zone in the Monarch 10-15 well, at the Company's expense,
estimated to be approximately US$75,000. A workover rig has been
commissioned and the re-completion has commenced. Results of the
up-hole completion will be announced in due course.
Hedging Update
The Company currently has the following hedging instruments in
place:
Price Total Volumes Term
----------------- ------------------------------ -------
Swap $ 75.30 17,350 Nov-17
Swap $ 52.45 48,000 Jun-17
Collar $47.00 - $52.75 88,000 Dec-17
As a result of these instruments, the Company's weighted average
price on the hedged volume will range between be $52.01 and $54.62
per barrel for the first half of 2017. The hedging instruments
allows the Company to manage the commodity risk around oil prices.
Additional volumes for 2017 are expected to be hedged if oil prices
improve and the Company's water flood pilot project volumes come on
line.
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
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January 03, 2017 02:00 ET (07:00 GMT)
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