TIDMHAWK
RNS Number : 9654M
Nighthawk Energy plc
03 August 2017
3 August 2017
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Company Presentation and Operational Update
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), announces and update to production
levels, hedging volumes and also is pleased to advise that a new
Company presentation will shortly be available to view on the
Company's website www.nighthawkenergy.com.
Highlights of the presentation include:
-- Company and asset overview
o As at 1 June 2017*, 1.1 Mmbbls of proved reserves and 1.4
Mmbbls of 2P resources
o Production to date reaches the 2.5 million barrels mark
-- Details of the Arikaree Creek water flood Pilot Project
including discussion of positive indicators of response
o June monthly oil production from three water flood producing
wells of 9,300 barrels (gross), 7,778 barrels (net), up
approximately 15% from non-waterflood decline levels
o Company estimates incremental PV10 reserve potential in excess
of $20 million from water flood pilot project
-- Introduction to the development potential at Broken Spear Field
o 28 identified potential drilling locations
o Estimated drilling and completion costs of $1.2 million per
vertical well
o Locations which contain similar reservoir characteristics to
the Arikaree Creek development area
o Company estimated potential at P50 probabilities of 11.3
Mmbbls OOIP (PV10 value of $25.3 million)
o Potential for significant reserves upside
-- Update of the Monarch development area in the Pennsylvania aged formation
* Interim updated audited report from the Company's independent
reserve engineering firm, Ryder Scott Company LP under SPE
standards
Hedging
The Company has entered into an additional swap agreement
covering 8,000 barrels per month for the production period from 1
August 2017 to 31 December 2017. The contract price is $49.45 per
barrel. With the addition of this contract, the Company has a total
of 86,340 barrels of oil under hedging contracts for 2017 with
prices ranging from $47.00 to $75.30.
Production Update
Gross and net* oil production (unaudited), in barrels, for the
first six months of 2017 is summarised below.
Monthly Daily Average
-------------------------------------- -----------------------------
Gross Net Gross Net
2017 2016 2017 2016 2017 2016 2017 2016
-------- -------- -------- -------- ------ ------ ----- ------
January 43,599 43,961 30,543 36,017 1,406 1,417 985 1,162
February 36,051 40,378 24,786 33,053 1,288 1,407 885 1,153
March 38,794 42,720 28,381 34,942 1,251 1,314 916 1,078
April 34,374 40,704 25,640 33,319 1,146 1,357 855 1,113
May 35,391 40,780 26,875 33,410 1,142 1,302 867 1,068
June 33,443 40,248 25,925 32,916 1,115 1,356 864 1,112
YTD 221,653 248,791 162,149 203,657 7,348 8,153 896 1,119
======== ======== ======== ======== ====== ====== ===== ======
*Net production is based upon Nighthawk's Net Revenue Interest
of approximately 82% save for the Monarch 10-15 well where HAWK has
a 16% working interest.
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:
Enquiries:Nighthawk Energy
plc
Rick McCullough, Executive
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 announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU 596/2014).
Definitions
2P- the sum of proved and probable reserves
MMBLS - Million barrels of oil
OOIP - Original oil in place
P50--The confidence level for the probability existing and
primarily refers to 'proved + probable' reserves
Probable Reserves-- an estimated quantity of all hydrocarbons
statistically defined as crude oil or natural gas, which geological
and engineering data demonstrate a 50% chance of being present
Proved reserves - an estimated quantity of all hydrocarbons
statistically defined as crude oil or natural gas, which geological
and engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing
economic and operating conditions
PV10 - the current value of approximated oil and gas revenues in
the future, minus anticipated expenses, discounted using a yearly
discount rate of 10%.
SPE - The Society of Petroleum Engineers
This information is provided by RNS
The company news service from the London Stock Exchange
END
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