28th Mar 2007 07:02
Nighthawk Energy plc28 March 2007 NIGHTHAWK ENERGY PLC Acquisition of 80 per cent. of Vogel Bartlesville Project, Bourbon County, Kansas Ten Well Appraisal Drilling and Development Programme Underway The directors of Nighthawk Energy plc ("Nighthawk" or the "Company") (AIM: HAWK)are pleased to announce the completion of the acquisition of an 80 per cent.working interest in the Vogel Bartlesville waterflood project (the "Vogelproject") in Kansas. The interest in the Vogel project, details of which were set out in theCompany's AIM admission document dated 6 March 2007, has been acquired from aDenver-based private company, Mountain Energy LLC for a sum of US$450,000.Running Foxes Petroleum Inc. is the Operator, and holds the remaining 20 percent. of the project. The Vogel project is located in Bourbon County, Kansas, within the CherokeeBasin, a prolific shallow oil and gas region producing from CarboniferousPennsylvanian, Mississippian and Ordovician reservoirs at less than 4,000 feet. The Vogel project will target an oil saturated Bartlesville channel sandstonelocated at 350 to 450 feet which has been defined by two previously drilledwells, Vogel 10-36 and 16-36. The net oil pay thickness has been calculated tobe approximately 25 feet within the reservoir interval. These wells alsoindicate reservoir continuity with porosities ranging from 22 to 27 per cent.The permeability of similar sandstones in the area varies from 50 to in excessof 1,000 millidarcies which will allow good flow rates for both the plannedproduction and injection wells. Based on core and log analysis, there are anestimated 3.1 million barrels of oil in place (gross) with a typical recoveryrate of between 30 to 50 per cent. in the area. A ten well appraisal and development programme has commenced on ten acrespacing. Following the drilling of the initial wells, the reservoir will bemodelled to determine the appropriate types of completion and water injectionrates. The current programme is expected to be completed by the end of June2007. David Racher B.Sc (Hons) Geology, who is a consultant to Nighthawk, has reviewedand approved the technical information contained in this announcement. For further information please contact: Nighthawk Energy plc 01271 882160David Bramhill, Managing Director [email protected] www.nighthawkenergy.net Hanson Westhouse Limited 0113 246 2610Tim Feather [email protected] Johnson [email protected] Bishopsgate Communications Limited 020 7562 3350Dominic Barretto [email protected] Read [email protected] Notes to Editors Nighthawk Energy plc is a UK registered hydrocarbon production and developmentcompany focused on building a portfolio of assets in the US. The Company'sprincipal asset is a 37.5 per cent. working interest in the Cisco Springsnatural gas project in the state of Utah, on which a major drilling anddevelopment programme is underway. Over 60 wells are planned on the projectduring the next two years. To date seven new wells have been drilled on the project, all of which have beencompleted as producers. OPC, independent consultants has estimated P50 reserves on the current acreageto be 94.2 billion cubic feet of natural gas, net to Nighthawk, of which 74.9billion cubic feet is in the P90 (proven) category. The NPV10 value of theproject net to Nighthawk has been calculated at US$192.3 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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