5th Aug 2013 07:00
5 August 2013
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Production Update
July average oil production exceeds 1,500 barrels per day
Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on production at its 100% owned and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.
Highlights
·; Average gross oil production in July 2013 of 1,512 barrels per day ("bbls/day")
·; Snowbird 9-15 well commenced production on 19 July 2013
·; Five wells now in production on the Arikaree Creek oil-field
·; Total production from all producing wells is currently running at over 1,650 bbls/day
Production
Average gross production levels in July 2013 increased to 1,512 bbls/day, with both the Silverton 16-10 and Snowbird 9-15 wells brought on-stream during the month. The Snowbird 9-15 well commenced production on 19 July, initially producing into temporary storage facilities. July production from the well since start-up averaged 151 bbls/day and is expected to increase once the permanent production facilities are completed early in August and pump stroke rates are increased.
After initial production in early July 2013, the Silverton 16-10 well was temporarily off-line for tubing repairs and adjustments. The well recommenced production on 23 July, averaging 154 bbls/day over the last 9 days of the month. As with the Snowbird 9-15 well, pumping rates are currently being held at lower levels whilst the well settles down and the Company plans to increase the stroke rate over the next few weeks.
As anticipated both Silverton 16-10 and Snowbird 9-15 are producing formation water alongside the oil. The quantities of water produced are well within the Company's salt-water disposal capacity and are having no material impact on production operations.
With five wells producing on Arikaree Creek and a small contribution from the older Jolly Ranch wells, total production over the last 9 days of July was over 1,650 bbls/day.
Stephen Gutteridge, Chairman of Nighthawk, commented:
"We are pleased with the increase in production, particularly as it has coincided with exceptionally good Colorado oil prices of over US$90/bbl, and as the new wells settle down we anticipate further increases over the next couple of months. We will also be engaged in detailed planning of the next steps in developing Arikaree Creek and our other highly prospective acreage. We have recently acquired an extensive 2D seismic grid and will be utilizing this to identify both new conventional targets and to plan commercial exploitation of the extensive unconventional Pennsylvanian opportunities across our acreage."
Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 32 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:
Nighthawk Energy plc Stephen Gutteridge, Chairman Richard Swindells, Chief Financial Officer | 020 3582 1350 | |
Westhouse Securities Limited Richard Baty Ian Napier | 020 7601 6100 | |
Investec Bank plc Chris Sim George Price | 020 7597 4000 | |
FTI Consulting Ben Brewerton Ed Westropp | 020 7831 3113 |
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