LONDON (Alliance News) - NightHawk Energy PLC Thursday said it may be able to recover an extra 1 million barrels from the Arikaree project in the US after it altered its reservoir model as it continues to develop its onshore assets.
The company said it has modified its Arikaree reservoir model which will allow it to potentially recover a further 1 million barrels above current estimates, and said this could be a 2016 capital project.
The US onshore oil and gas company said it is also currently evaluating 3D seismic for its Monarch and El Dorado joint development agreements in its northern acreage in Colorado. Early 3D seismic results indicate there are as many as nine pop-up features with potentially 40 to 50 drilling targets.
In total, NightHawk has identified approximately 70 potential drilling locations, including around 30 to 50 of which are in the Monarch joint development area.
All of the company's assets are located close to each other in Colorado, and the company said its vertical well drilling costs are estimated to be between USD1.5 million to USD1.7 million per well.
"We are now high grading the selection of locations to drill first based on a seismic inversion analysis and reservoir modelling," it said.
NightHawk shares were down 2.6% to 5.60 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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