Nighthawk Energy Regulatory News (HAWK)

19 Sep 2007 07:01

Nighthawk Energy plc19 September 2007 Nighthawk Energy plc Devon Oilfield Update The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK)are pleased to announce an update on the Devon Oilfield waterflood project,including details of additional land acquisitions and further successfulappraisal drilling results. The Company holds an 80 per cent. interest in theDevon project and the operator, Running Foxes Petroleum Inc. ("Running Foxes"),holds the remaining 20 per cent. interest. The Devon Oilfield project is located in Bourbon County, Kansas, within theCherokee Basin, a prolific shallow oil and gas producing area. The currentappraisal drilling is targeting Bartlesville channel sandstones located betweenthe depths of 350 to 500 feet. At the time of Nighthawk's acquisition of the Devon Oilfield project in March2007, the project covered 160 acres, on which the operator estimated there to be3 million barrels of oil in place. The acreage subsequently increased to 960acres through land acquisitions and the operator's estimate of the oil in placeincreased to in excess of 10 million barrels. With the expansion in theacreage, Nighthawk and Running Foxes decided to increase the appraisal anddevelopment programme from the original 12 wells to a 54 well programme. The drilling programme has indicated that oil bearing Bartlesville sandstone mayextend beyond the currently known parameters to the west. Nighthawk and RunningFoxes have therefore exercised an option with a third party over a further 560acres located in Section 2 of Township 25, South Range 23 East, approximatelyone mile south-west from the original project acreage. Several new wells inthis area are currently being permitted. In addition, Nighthawk and Running Foxes have acquired a further 244 acreslocated in Section 6, Township 25 South, Range 24 East, approximately half amile south-east from the original project acreage from a third party. Twosuccessful appraisal wells have been drilled to date on this newly acquiredacreage and have been completed, logged and cased as future producers. A numberof new wells within this area are currently being permitted. All the wellsplanned on the newly acquired acreage are in addition to the existing 54 wellprogramme. Wireline log interpretations for the two wells drilled to date, the Cleaver 5-6Aand 5-6C in Section 6, have been evaluated for hydrocarbons in place on 10 acrespacing using Bowler JLog petrophysical analysis software. Results showingformation, depth intervals, estimated hydrocarbons in place and total net paythickness are set out below. Well Formation Depth interval Hydrocarbons in Net pay (feet) place (feet) (bbl = barrel) Cleaver 5-6A Lower Bartlesville 404-419 93,992 11.0 Cleaver 5-6C Lower Bartlesville 426-436 59,224 10.0 In addition, four new appraisal wells within the original project acreageconfirmed the presence of oil saturated sandstones and have been completed,logged and cased as future producers. Well Formation Depth interval Hydrocarbons Net pay (feet) in place (feet) (bbl = barrel) Vogel 2-1A Upper Bartlesville 360-368 26,183 4.0 Lower Bartlesville 382-388 77,383 12.0 Vogel 16-36A Upper Bartlesville 350-360 27,516 6.0 Lower Bartlesville 410-422 66,586 7.5 Vogel 9-36A Lower Bartlesville 426-435 62,970 8.5 Vogel 16-36C Lower Bartlesville 400-419 16,115 3.3 In addition, a number of "edge" wells have been drilled on the boundaries of theproject acreage. The presence of oil saturated sandstones continues to beconfirmed by this drilling which is situated up to one mile from the heart ofthe project from where the pilot waterflood will be implemented. Analysis of the oil saturated cores with the objective of evaluating porosityand permeability are ongoing in conjunction with other tests to assist in thedesign of the most efficient production methods. David Bramhill, Managing Director, said: "The progress made on this project hasbeen very encouraging. Since the original acquisition of 160 acres in March2007, we have expanded the land base of the project by a factor of 10 andappraisal drilling continues to confirm the presence of oil saturated sandstoneswithin the extended project area." 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.com Matthew Johnson matthew.johnson@hansonwesthouse.comBishopsgate 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