Devon Update and Acquisitions

10 Oct 2007 07:01

Nighthawk Energy plc10 October 2007 Nighthawk Energy plc Commencement of pilot waterflood at the Devon Oilfield, Kansas Acquisition of interests in the Buchanan and Worden projects, Missouri The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK)are pleased to announce details of the implementation of a pilot waterfloodproduction project at the Devon Oilfield, Kansas and the acquisition of a 50 percent. interest in two new projects, the Buchanan and Worden, located in VernonCounty, Missouri. Implementation of pilot waterflood at the Devon Oilfield The Devon Oilfield, which covers an area of 1,764 acres, is located in BourbonCounty, Kansas, within the Cherokee Basin, a prolific shallow oil and gasproducing area. Nighthawk holds an 80 per cent. interest in the project and theoperator, Running Foxes Petroleum Inc. ("Running Foxes"), a 20 per cent.interest. Nighthawk and Running Foxes are undertaking a major appraisal drilling programmeof over 60 wells, targeting Bartlesville channel sandstones between depths of350 to 500 feet. With the drilling programme well advanced, the implementationof a pilot waterflood oil production project has commenced. Running Foxes has identified the location for the first four water injectorwells to be used to flood the Bartlesville sandstone where the productionintervals are between 20 to 30 feet thick. Drilling of the injector wells isexpected to commence within the next 14 days. Subsequent permitting for theinjection of water is expected to take approximately 90 days to be granted bythe Kansas State. The appraisal wells to be used for trial production during the pilot arecurrently being perforated and flow lines and oil storage tanks are being putinto place. Acquisition of interests in the Buchanan and Worden projects, Vernon County,Missouri Nighthawk has acquired a 50 per cent. interest in the Buchanan and Wordenprojects, located in Vernon County, Missouri within the Cherokee Basin,encompassing a combined acreage of 774 acres and targeting the same Bartlesvillesandstone reservoirs as at the Devon Oilfield project. Running Foxes is theoperator and holds the remaining 50 per cent of the projects. Missouri is surrounded on three sides by large oil producing basins, theIllinois, Arkoma and Anadarko. Missouri's oil occurs in sandstones of thePennsylvanian age Cherokee Group at shallow production depths. There are a number of operating companies in the area currently acquiring landto either water or steam flood at shallow depths. Nighthawk and Running Foxesintend to permit four test wells on each project and will continue to seekadditional acreage where significant oil reserves have previously beenidentified as at the Buchanan and Worden projects. David Bramhill, Managing Director, said: "We are delighted that the DevonOilfield project is moving into the pilot production phase. Our success atDevon led us to seek further similar opportunities which has resulted in theacquisition of the Buchanan and Worden projects." For further information in respect of the waterflood process, please visitwww.nighthawkenergy.net 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.com This information is provided by RNS The company news service from the London Stock Exchange