Nighthawk Energy Regulatory News (HAWK)

24 Jul 2007 07:00

Nighthawk Energy plc24 July 2007 Nighthawk Energy plc Devon Oil Field Update The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK)are pleased to announce an update on the Devon oil field project (formerly knownas the Vogel Bartlesville project), including details of further successfuldrill results, the expansion of the appraisal and development drilling programmeand the agreement of an option to acquire additional acreage. The Company holdsan 80 per cent. interest in this waterflood project and the operator, RunningFoxes Petroleum Inc. ("Running Foxes"), a 20 per cent. interest. The Devon oil field, which currently covers an area of 960 acres, is located inBourbon County, Kansas, within the Cherokee Basin, a prolific shallow oil andgas producing area. The current drilling is targeting Bartlesville channelsandstones located between 350 to 500 feet. Drilling Update Nighthawk and Running Foxes have drilled a total of 27 appraisal wells, of which22 have confirmed the presence of oil saturated sandstones. The 22 successfulappraisal wells have been completed, logged and cased as future producers. Dueto the continuing drilling success, the appraisal and development programme hasbeen expanded to a total of 54 wells with the objective of delineating theextent of the reservoir in preparation for the implementation of a pilot flood.Further wells may be added to the programme as a result of the acquisition ofadditional acreage. The oil in place contained within the currently held acreage of 960 acres, isestimated by Running Foxes to be in excess of 10 million barrels of oil (gross). Wireline log interpretations for 14 of the wells drilled to date have beenevaluated for hydrocarbons in place on 10 acre spacing by Atoka Laboratories,using Bowler JLog petrophysical analysis software. Results showing formation,depth intervals, estimated hydrocarbons in place and total net pay thickness areset out below. Well Formation Depth Hydrocarbons in Net pay place interval (feet) (bbl = barrel) (feet) Vogel 16-36B Upper Bartlesville 343-375 62,820 13.0 Lower Bartlesville 391-423 217,195 27.5 Vogel 15-36C Upper Bartlesville 350-378 41,623 9.0 Lower Bartlesville 400-422 95,226 16.0 Vogel 15-36B Upper Bartlesville 363-390 56,628 9.0 Lower Bartlesville 413-433 91,753 15.5 Vogel 10-36C Lower Bartlesville 393-448 248,533 30.5 Vogel 10-36B Upper Bartlesville 374-390 2,365 2.0 Lower Bartlesville 412-460 234,902 33.0 Vogel 10-36A Lower Bartlesville 415-463 125,507 15.5 Vogel 9-36C Lower Bartlesville 420-429 209,446 7.0 Vogel 9-36B Lower Bartlesville 418-451 226,481 9.5 Gross 1-1C Upper Bartlesville 363-386 11,333 2.5 Lower Bartlesville 416-444 104,785 23.5 Graham 8-36C Lower Bartlesville 468-477 48,323 9.0 Graham 8-36 CBM Upper Bartlesville 414-421 17,685 5.0 Lower Bartlesville 477-495 78,432 14.0 Graham 7-36 Lower Bartlesville 466-486 70,304 14.0 Graham 7-36C Upper Bartlesville 394-402 6,179 2.0 Lower Bartlesville 447-477 128,990 18.5 Harvey 2-7 Lower Bartlesville 393-427 18,904 3.5 Core Analysis and Testing Houston-based, Core Lab Petroleum Services are currently conducting analysis ofoil saturated cores recovered from the appraisal wells with the objective ofevaluating porosity and permeability. In addition other tests are beingconducted to assist in the design of the most efficient method of waterflooding. Additional Acreage Optioned The drilling results obtained to date indicate that the reservoir also extendsinto the western side of the current project area. Nighthawk has agreed anoption over 440 acres of this third party held acreage to acquire the undividedoil and gas leasehold and working interests for a purchase price of US$450 peracre. An appraisal well will be drilled on this acreage and, if successful, theCompany intends to exercise the option. David Bramhill, Managing Director, said: "The drilling results from the Devonproject are substantially exceeding our initial expectations. We have thereforesignificantly expanded the project and look forward to reporting furtherprogress in due course." David Racher B.Sc (Hons) Geology, who is a consultant to Nighthawk, has reviewedand approved the technical information contained in this announcement. For information in respect of the waterflood process, please visitwww.nighthawkenergy.com where an animation of the process can be viewed on theDevon oilfield page. For further information please contact: Nighthawk Energy plc 01271 882160David Bramhill office@nighthawkenergy.netManaging Directorwww.nighthawkenergy.net Hanson Westhouse Limited 0113 246 2610Tim Feather tim.feather@hansonwesthouse.comMatthew Johnson matthew.johnson@hansonwesthouse.com Bishopsgate Communications Limited 020 7562 3350Dominic Barretto dominic@bishopsgatecommunications.comFran Read fran@bishopsgatecommunications.com This information is provided by RNS The company news service from the London Stock Exchange