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Nighthawk delivers "rapid" production growth
By Darshini Shah | Fri, 12th July 2013 - 10:06

Nighthawk Energy (HAWK) has doubled its average gross oil production from its Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado, from the first quarter to the second quarter.

Average gross oil production in second quarter of 2013 came in at 631 barrels per day.

In addition, average gross oil production in June amounted to 1,029 barrels per day, a record monthly production level for the projects.

Average gross production levels have continued to increase month-on-month on the Arikaree Creek oil-field. The Arikaree Creek discovery well, Steamboat Hansen 8-10, has now been in production for over seven months with a steadily increasing production rate over that period and no water production.

The Big Sky 4-11 well commenced production in late May and was followed by the Taos 1-10 well in mid-June. Since coming on-stream, the production rates at both these wells have held steady at around 400 barrels per day and 500 barrels per day respectively, with no water production. With these three wells on-line, total production from Arikaree Creek for the second half of June was approximately 1,200 barrels per day.

The fourth well in the Arikaree Creek drilling programme, the Silverton 16-10 well, has commenced production. The well is still settling down and initial production rates are around 200 barrels per day. Testing is currently underway on the fifth well on Arikaree Creek, the Snowbird 9-15.

Total production from all producing wells is currently running at over 1,400 barrels per day.

At current prices and production levels, chairman Stephen Gutteridge revealed that monthly net revenues were at a run rate in excess of $3 million (£1.98 million).

"The rapid growth in production as a result of the highly successful spring drilling campaign has transformed Nighthawk," Gutteridge stated. "With a payback on drilling at Arikaree Creek of less than three months and multiple new drilling locations on the field, we look forward to being able to boost production and revenue further with our planned fourth-quarter drilling campaign."
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