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13 Nov 2008 07:00
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Nighthawk Energy plc
Centurion Project Update
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce anΒ operational update in respect of the Centurion project. Nighthawk holds a 50 per cent. interest in the project, operated by Running Foxes Petroleum Inc.Β ("Running Foxes"), which holds the remaining percentage interest.
FranklinΒ 13-6 well placed on productionΒ atΒ aΒ restrainedΒ rate ofΒ 80 barrels of oil per dayΒ
Hydrocarbons encountered at Atoka-Nighthawk 12-29 in the Simpson and MississippianΒ sandstones
Water and gas lines being laid toΒ previously drilledΒ water disposal well,Β lowering waterΒ disposal costs from US$3.00Β to US$0.10Β per barrel
The Centurion project, whichΒ is located inΒ Sumner County, Kansas, coversΒ approximately 15,000 acresΒ and lies within the prolificΒ SedgwickΒ BasinΒ which has produced from the Arbuckle, Simpson, Viola, Mississippian and CherokeeΒ horizonsΒ at depths of less than 5,000 feet.
On 8 October 2008,Β Nighthawk announced thatΒ twoΒ low costΒ exploration wells had been drilled, the Franklin 13-6 and the Atoka Nighthawk 13-11,Β both of which indicated positive results. The initial wells were located on a major basement flexure testing multiple pay zones. In addition, theΒ drilling of theΒ Atoka-NighthawkΒ 12-29 wellΒ hadΒ commencedΒ at that time.
FranklinΒ 13-6
TheΒ FranklinΒ 13-6 well reached total depth at 3,904 feet and encountered excellent live oil shows and large mudlog gas kicks throughout a 60 foot zone from 3,391 to 3,451 in the Mississippian Chat, a carbonate reservoir and prolific production horizon in the area.
TheΒ FranklinΒ 13-6 well hasΒ sinceΒ been completed in three Mississippian zones and placed on production. The well isΒ now moving 160Β barrels of fluidΒ a dayΒ with an oil cut of 50 per cent., equating toΒ current production ofΒ 80 barrels of oilΒ per dayΒ and associated gas.Β Β The installation of a higher capacity pumpjack is being considered by the operatorΒ in order to move greater volumes of fluids, which is expected to increaseΒ oilΒ productionΒ significantly.Β
The operatorΒ is currently laying water and gas lines to theΒ water disposal wellΒ Andra 16-12Β drilled by Nighthawk and Running Foxes during 2007. Operation ofΒ theΒ waterΒ disposal wellΒ will have a dramatic effectΒ onΒ project economics. Water can be moved to theΒ waterΒ disposal well forΒ approximatelyΒ US$0.10Β per barrelΒ compared to US$3.00Β by trucking.
Atoka-Nighthawk 13-11Β
The Atoka-Nighthawk 13-11 wellΒ wasΒ completed at 4,000 feet and is dewatering the Excello,Β SummitΒ and V shales. The well is making increasing amounts of gas and the operator is pursuing a tap facility to sell product. Regional infrastructure is good and an accessible major pipeline is located near to the project area.
Atoka-Nighthawk 12-29
The Atoka-NighthawkΒ 12-29Β wellΒ has encountered hydrocarbonsΒ in both the Simpson and Mississippian sandstone. The wellΒ is being completed in a Simpson sand and will be acidised in the near future.
Estimated oil in place for conventional reservoirs in the Centurion project area vary from 5,000 to 500,000 barrels of oil per wellΒ on 40 acre spacing depending on reservoir characteristics.
David Bramhill,Β Managing Director of Nighthawk commented "This initial success at CenturionΒ is very encouragingΒ andΒ the land base of in excess of 15,000 acres offers substantial potentialΒ for the future. Of Nighthawk's seven projects in which it holds significant interests ranging from 50 to 80 per cent., four are now in production, Jolly Ranch, Devon Oilfield, Cisco Springs and Centurion. During the remainder of 2008 weΒ alsoΒ expect some of the Buchanan Group projects to attain production status. The success of the Centurion wellsΒ highlightsΒ the technical skills of our partner Running FoxesΒ who maintain a drilling success rate of in excess of 90 per cent. over our jointly held projects."
David Racher B.Sc (Hons) Geology, who is a consultant to Nighthawk and has over 37 years of experience in the hydrocarbons industry and previously managed the Lasmo plc onshoreΒ USΒ portfolio inΒ Kansas,Β Louisiana,Β South Dakota,Β TexasΒ andΒ Wyoming, has approved the technical information contained in this announcement.
Enquiries:
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Nighthawk Energy plc David Bramhill |
01271 882160 davidbramhill@nighthawkenergy.net |
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Hanson Westhouse Limited Tim Feather Matthew Johnson |
020 7601 6100 tim.feather@hansonwesthouse.com matthew.johnson@hansonwesthouse.com |
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Bishopsgate Communications Limited Nick Rome |
020 7562 3350 nick@bishopsgatecommunications.com |
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