LONDON (Alliance News) - Nighthawk Energy PLC Thursday said its total and average production rates have soared in the last year, but it has received disappointing initial logs from the Snow King 12-33 well in Colorado.
The US-focused oil development and production company said total gross oil production in its first half ended June 30 has seen more than a four-fold increase to 345,558 barrels from 85,609 barrels the previous year and its second quarter production more than trebled to 188,203 barrels from 57,434 barrels the previous year.
The company also said its gross average production rates increased to 1,909 barrels per day in its first half from 473 barrels per day, and to 2,068 barrels per day in the second quarter from 631 barrels per day.
Nighthawk has an average net revenue interest of roughly 81.5% in the gross oil production.
However, the company did note that its total production rates and average production rates fell slightly in June when compared to May, and said that during July it will undertake routine pressure build up tests on two of its Arikaree Creek wells in order to evaluate its field reserves and production profile.
Nighthawk said that drilling of the Snow King 12-33 well has reached a target depth of 8,500 feet and has been completed but during logging a blockage was hit in the well-bore.
The Snow King 12-33 was drilled to appraise the Mississippian potential to the north of its original Snow King discovery, and the company said initial analysis of the logs indicates significantly lower structures, possibly through faulting, with limited potential for additional production.
The company said that despite this news it will continue appraisal drilling of its Snow King discovery through the summer with two further well locations, the Snow King 5-33 and 6-33, already permitted.
In April, Nighthawk made a new oil discovery at the Snow King 13-33 exploration well, starting production from the Mississipian Spergen formation with an initial production rate of 300 to 400 barrels of oil per day.
At the time, the company said the discovery is a landmark moment and has the potential to open up the basin to full-scale development programme similar to its Arikaree Creek operations.
The company also reported on Thursday that it had completed drilling of the Knoss 9-20 exploration well, to a depth of 8,600 metres, but that the well will now be plugged and abandoned.
Nighthawk recently found a strong area of gas in its John Craig 2-2 oil zone, and the company said on Thursday that once it brings the site into production, it expects total production from the John Craig area to be in the range of 250 to 300 barrels per day.
Nighthawk shares were down 11% to 11.77 pence, putting it among the top ten AIM All-Share fallers on Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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