28 Jun 2010 07:00
Nighthawk Energy plc
("Nighthawk" or the "Company")
Hammond Project Acquisition
Nighthawk, the US focused hydrocarbon development and production company (AIM: HAWK and OTCQX: NHEGY), is pleased to announce the acquisition of a 50% interest in the Hammond project ("Hammond") located in Bourbon County, Kansas. Running Foxes Petroleum Inc. ("Running Foxes") has acquired the remaining 50% interest and is the operator.
Highlights:
·; 4,773 gross acres acquired
·; 42 production wells present within the acreage
·; Re-evaluation and redevelopment programme underway
·; 12 mile pipeline network connects to Nighthawk's 50% owned Bourbon County Pipeline
Hammond, covering an area of 4,773 gross acres (4,773 net) and held by production (an indefinite licence term whilst production is maintained), has been consolidated into the Revere project ("Revere") and is strategically located adjacent to the Buchanan and Worden leases in Missouri. The Revere project now covers a total area of approximately 60,000 gross acres.
In addition to the land base described above, significant infrastructure including a combination of gas and oil production wells, oil tank storage batteries and pipelines form part of the acquisition.
42 wells (29 gas / 13 oil) are situated within the Hammond acreage and are classified by the previous operator as production wells, having produced from coal and shale formations. Whilst some gas wells are in production, a programme of re-evaluation and redevelopment of these wells is underway. Running Foxes intends to fracture stimulate the Riverton coals, the AW coals and the Tebo 'B' shale, which are the main formations present in the gas wells.
The current oil wells, following recompletion, will be brought online, together with additional production and water injection wells. The reservoir is the Bartlesville sandstone and is continuous within the Revere project which is undergoing waterflooding at several sites.
Within the Hammond acreage there is an existing 12 mile pipeline and gas gathering network. The pipeline is located adjacent to the Buchanan and Worden leases situated in the Missouri section of Revere, allowing westward transportation of gas from that project area into the Bourbon County Pipeline of which Nighthawk holds a 50% interest.
Running Foxes and Nighthawk now control 51 miles of main pipeline and gathering systems in the region, transporting gas from their Kansas and Missouri production to the main interstate line.
Tim Heeley B.Eng (Hons) a member of the Society of Petroleum Engineers, Fellow of the Geological Society of London and a Chartered Energy Engineer, who is Commercial Director of Nighthawk and has over 13 years of experience in the hydrocarbons industry, has approved the technical information contained in this announcement.
Enquiries:
| Nighthawk Energy plc David Bramhill, Managing Director Tim Heeley, Commercial Director |
01271 882160 07956 525433 020 7887 1454 |
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| Westhouse Securities Limited Tim Feather Matthew Johnson | 020 7601 6100 tim.feather@westhousesecurities.com matthew.johnson@westhousesecurities.com |
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| Matrix Corporate Capital LLP Louis Castro James Pope | 020 3206 7000 louis.castro@matrixgroup.co.uk james.pope@matrixgroup.co.uk |
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| Bishopsgate Communications Limited Nick Rome | 020 7562 3395 nick@bishopsgatecommunications.com |
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| Financial Dynamics Ben Brewerton Ed Westropp
| 020 7831 3113 ben.brewerton@fd.com edward.westropp@fd.com |