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Company Presentation and Operational Update

3 Aug 2017 07:00

RNS Number : 9654M
Nighthawk Energy plc
03 August 2017
 

 

3 August 2017

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

 

Company Presentation and Operational Update

 

 

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces and update to production levels, hedging volumes and also is pleased to advise that a new Company presentation will shortly be available to view on the Company's website www.nighthawkenergy.com.

 

 Highlights of the presentation include:

 

· Company and asset overview

As at 1 June 2017*, 1.1 Mmbbls of proved reserves and 1.4 Mmbbls of 2P resources

Production to date reaches the 2.5 million barrels mark

· Details of the Arikaree Creek water flood Pilot Project including discussion of positive indicators of response

o June monthly oil production from three water flood producing wells of 9,300 barrels (gross), 7,778 barrels (net), up approximately 15% from non-waterflood decline levels

o Company estimates incremental PV10 reserve potential in excess of $20 million from water flood pilot project

· Introduction to the development potential at Broken Spear Field

28 identified potential drilling locations

o Estimated drilling and completion costs of $1.2 million per vertical well

o Locations which contain similar reservoir characteristics to the Arikaree Creek development area

o Company estimated potential at P50 probabilities of 11.3 Mmbbls OOIP (PV10 value of $25.3 million)

o Potential for significant reserves upside

· Update of the Monarch development area in the Pennsylvania aged formation

 

* Interim updated audited report from the Company's independent reserve engineering firm, Ryder Scott Company LP under SPE standards

 

Hedging

The Company has entered into an additional swap agreement covering 8,000 barrels per month for the production period from 1 August 2017 to 31 December 2017. The contract price is $49.45 per barrel. With the addition of this contract, the Company has a total of 86,340 barrels of oil under hedging contracts for 2017 with prices ranging from $47.00 to $75.30.

 

 Production Update

Gross and net* oil production (unaudited), in barrels, for the first six months of 2017 is summarised below.

 

 

Monthly

Daily Average

 

Gross

Net

Gross

 

Net

 

2017

2016

2017

2016

2017

2016

 

2017

2016

 

 

 

 

 

 

 

 

 

 

January

43,599

43,961

30,543

36,017

1,406

1,417

 

985

1,162

February

36,051

40,378

24,786

33,053

1,288

1,407

 

885

1,153

March

38,794

42,720

28,381

34,942

1,251

1,314

 

916

1,078

April

34,374

40,704

25,640

33,319

1,146

1,357

 

855

1,113

May

35,391

40,780

26,875

33,410

1,142

1,302

 

867

1,068

June

33,443

40,248

25,925

32,916

1,115

1,356

 

864

1,112

YTD

221,653

248,791

162,149

203,657

7,348

8,153

 

896

1,119

 

 *Net production is based upon Nighthawk's Net Revenue Interest of approximately 82% save for the Monarch 10-15 well where HAWK has a 16% working interest.

 

 

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

 

- Ends-

 

Enquiries:

 

Enquiries:Nighthawk Energy plc

 

Rick McCullough, Executive Chairman 

+1 303 407 9600

Kurtis Hooley, Chief Financial Officer

+44 (0) 20 3582 1350

 

 

Stockdale Securities Limited

+44 (0) 20 7601 6100

Richard Johnson

 

David Coaten

 

 

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU 596/2014).

 

 

Definitions

 

2P- the sum of proved and probable reserves 

 

MMBLS - Million barrels of oil

 

OOIP - Original oil in place

 

P50--The confidence level for the probability existing and primarily refers to 'proved + probable' reserves

 

Probable Reserves-- an estimated quantity of all hydrocarbons statistically defined as crude oil or natural gas, which geological and engineering data demonstrate a 50% chance of being present

 

Proved reserves - an estimated quantity of all hydrocarbons statistically defined as crude oil or natural gas, which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions

 

PV10 -  the current value of approximated oil and gas revenues in the future, minus anticipated expenses, discounted using a yearly discount rate of 10%. 

 

SPE - The Society of Petroleum Engineers

 

 

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCSSLFUEFWSEEA
Date   Source Headline
30th Nov 20167:00 amRNSProduction Update
16th Nov 20164:40 pmRNSSecond Price Monitoring Extn
16th Nov 20164:35 pmRNSPrice Monitoring Extension
11th Nov 201610:15 amRNSUpdate re Water Flood Pilot Project
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30th Sep 20167:00 amRNSHalf-year Report
20th Sep 20164:35 pmRNSPrice Monitoring Extension
20th Sep 20167:00 amRNSSettlement of litigation
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