29th Jul 2015 09:10
LONDON (Alliance News) - Nighthawk Energy PLC Wednesday said it did not drill any new wells in the second quarter of 2015 in light of lower oil prices, but said it will recommence drilling in 2016 as production from its existing wells experienced a small drop.
The oil and gas company operating in Colorado in the US said net production in the second quarter averaged 1,568 barrels of oil per day, producing a total of 142,715 barrels in total, down from a daily average of 1,630 barrels in the first quarter of 2015 which produced a total of 146,710 barrels.
"In light of the continued depressed oil price, no new wells were drilled in the quarter ended June 30, 2015. Despite this, production was broadly maintained by a complete overview and optimisation of the pumping parameters for each well," said the company in a statement.
Nighthawk said it has now completed the 3D seismic interpretation at the Monarch and El Dorado joint venture projects covering the company's northern acreage in Colorado. It is now in the early stages of permitting multiple wells within the Monarch joint development agreement, which it hopes to implement in 2016.
At the Arikaree Creek project, the previously announced 20.0 million barrel oil in place figure has been confirmed by the company's reserve analyst. Of the total oil in place figure, 16.0 million barrels is situated in the Spergen zone and the other 4.0 million is in the tripolitic chert section which sits immediately above the Spergen.
Nighthawk believes it can recover around 25% of the oil in place, suggesting it can recover 4.0 million barrels from Spergen and 1.0 million barrels from the upper area. Over 1.2 million barrels of oil have already been produced from the Arikaree Creek field, leaving up to another 3.8 million barrels still to be recovered under primary and secondary recovery.
Nighthawk shares were up 3.6% to 3.29 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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