Nighthawk Energy Share News (HAWK)

On Monday morning Nighthawk Energy provided a drilling update on its Steamboat Hansen 8-10 well, the highlight of which was that it confirmed the potential of a shale formation located in the northern part of its acreage.As well, the AIM listed and US focused shale oil development and production company unveiled the discovery of a Mississippian-age conventional oil formation, which may have positive implications for its other properties. The above was the fourth well of the five it aimed to drill this year at its Jolly Ranch project in the Denver-Julesburg Basin, Colorado. Further testing and completion of the Cherokee shale formation in this area will not be undertaken until the newly discovered deeper oil reservoir is produced.This area will now be known as the Smoky Hill project, Nighthawk explained.The conventional oil bearing reservoir was detected at a depth of just over 8,000 feet and internal analysis indicates potential oil initially in place of 4 to 8 million barrels. Initial analysis of the oil shows it to be a light 38-40 degree API, slightly viscous oil. An update on production rates will be issued once steady production has been established.The same well identified oil producing potential in the Cherokee shale formation at a depth of around 7,400 feet. Mississippian formation is a new oil play in this areaAs regards the first reservoir, Stephen Gutteridge, Chairman of Nighthawk, said: "(...) This discovery opens up the possibility of further Mississippian potential which is a very active play in Western Kansas, North Western Oklahoma, Texas panhandle and further east in Colorado, but is a completely new oil play in this part of the Denver-Julesberg basin and potentially adds substantial value to our large acreage position in this area."But there were also some setbacksThe downside of the Hansen 8-10 success is that it led to a slight delay in bringing the Knoss 6-21 well into production. As well, the outfit reported a drop in oil production at its John Craig 6-2 well, after the oil/water ratio at that well fell over the previous two weeks, resulting in said fall in production. Lastly, the company announced that it still planned to re-complete the Pike's Peak Williams 4-30 well, which has not yet produced, but this is now likely to be in the New Year it said.AB