11th Jun 2014 07:10
LONDON (Alliance News) - Nighthawk Energy PLC Wednesday said it has achieved strong production rates at its Smoky Hill and Jolly ranch projects in Colorado, allowing its net monthly revenue to exceed USD5 million for the first time.
The US-focused oil development and production company said it achieved an average gross oil production from the wells of 2,141 barrels per day during May, compared with 1,998 barrels a day during April, with rates reaching 2,326 barrels per day in early May.
The rates move Nighthawk a step closer to producing its next target production performance of 3,000 barrels of oil a day, after reaching over 2,000 barrels of oil per day during April.
It said that during the period, its Snow King 13-33 well, which began production in mid-April, continued to perform strongly with an average gross production rate of over 400 barrels per day.
However, the company said that drilling of an initial well in its farm-out just north of the John Craig site has been completed and provided additional data about the Pennsylvanian formations, but the operator felt there was not significant potential to justify the costs of completing the well and work at the site has stopped.
Nighthawk said nine wells are now in production at the Arikaree Creek oilfield, while the Big Sky 14-11 well, started production in May, following successful fracking of a small Mississippian section.
The company also said its John Craig 2-2 well in the Pennsylvanian age formations tested commercial oil flows during May, the John Craig 10-10 well underwent completion and testing, and the John Craig 4-2 well was completed with logs showing good potential for the site.
Nighthawk said its drilling programme at the site is now continuing with the Knoss 9-20 exploration well.
Nighthawk Energy shares were down 1.2% to 12.72 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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