13th Nov 2008 07:00
Nighthawk Energy plc
Centurion Project Update
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce an operational update in respect of the Centurion project. Nighthawk holds a 50 per cent. interest in the project, operated by Running Foxes Petroleum Inc. ("Running Foxes"), which holds the remaining percentage interest.
Franklin 13-6 well placed on production at a restrained rate of 80 barrels of oil per day
Hydrocarbons encountered at Atoka-Nighthawk 12-29 in the Simpson and Mississippian sandstones
Water and gas lines being laid to previously drilled water disposal well, lowering water disposal costs from US$3.00 to US$0.10 per barrel
The Centurion project, which is located in Sumner County, Kansas, covers approximately 15,000 acres and lies within the prolific Sedgwick Basin which has produced from the Arbuckle, Simpson, Viola, Mississippian and Cherokee horizons at depths of less than 5,000 feet.
On 8 October 2008, Nighthawk announced that two low cost exploration wells had been drilled, the Franklin 13-6 and the Atoka Nighthawk 13-11, both of which indicated positive results. The initial wells were located on a major basement flexure testing multiple pay zones. In addition, the drilling of the Atoka-Nighthawk 12-29 well had commenced at that time.
Franklin 13-6
The Franklin 13-6 well reached total depth at 3,904 feet and encountered excellent live oil shows and large mudlog gas kicks throughout a 60 foot zone from 3,391 to 3,451 in the Mississippian Chat, a carbonate reservoir and prolific production horizon in the area.
The Franklin 13-6 well has since been completed in three Mississippian zones and placed on production. The well is now moving 160 barrels of fluid a day with an oil cut of 50 per cent., equating to current production of 80 barrels of oil per day and associated gas. The installation of a higher capacity pumpjack is being considered by the operator in order to move greater volumes of fluids, which is expected to increase oil production significantly.
The operator is currently laying water and gas lines to the water disposal well Andra 16-12 drilled by Nighthawk and Running Foxes during 2007. Operation of the water disposal well will have a dramatic effect on project economics. Water can be moved to the water disposal well for approximately US$0.10 per barrel compared to US$3.00 by trucking.
Atoka-Nighthawk 13-11
The Atoka-Nighthawk 13-11 well was completed at 4,000 feet and is dewatering the Excello, Summit and V shales. The well is making increasing amounts of gas and the operator is pursuing a tap facility to sell product. Regional infrastructure is good and an accessible major pipeline is located near to the project area.
Atoka-Nighthawk 12-29
The Atoka-Nighthawk 12-29 well has encountered hydrocarbons in both the Simpson and Mississippian sandstone. The well is being completed in a Simpson sand and will be acidised in the near future.
Estimated oil in place for conventional reservoirs in the Centurion project area vary from 5,000 to 500,000 barrels of oil per well on 40 acre spacing depending on reservoir characteristics.
David Bramhill, Managing Director of Nighthawk commented "This initial success at Centurion is very encouraging and the land base of in excess of 15,000 acres offers substantial potential for the future. Of Nighthawk's seven projects in which it holds significant interests ranging from 50 to 80 per cent., four are now in production, Jolly Ranch, Devon Oilfield, Cisco Springs and Centurion. During the remainder of 2008 we also expect some of the Buchanan Group projects to attain production status. The success of the Centurion wells highlights the technical skills of our partner Running Foxes who maintain a drilling success rate of in excess of 90 per cent. over our jointly held projects."
David Racher B.Sc (Hons) Geology, who is a consultant to Nighthawk and has over 37 years of experience in the hydrocarbons industry and previously managed the Lasmo plc onshore US portfolio in Kansas, Louisiana, South Dakota, Texas and Wyoming, has approved the technical information contained in this announcement.
Enquiries:
|
Nighthawk Energy plc David Bramhill |
01271 882160 |
|
|
Hanson Westhouse Limited Tim Feather Matthew Johnson |
020 7601 6100 |
|
|
Bishopsgate Communications Limited Nick Rome |
020 7562 3350 |
|
Related Shares:
Nighthawk Energy