Jolly Ranch Update

17 Dec 2007 07:01

Nighthawk Energy plc17 December 2007 Nighthawk Energy plc Jolly Ranch Update Highlights: • Land base increased from 84,000 acres to in excess of 139,000 acres • Refinement of 3-D seismic identifies additional drill targets • Expansion of 2008 development drilling programme The directors of Nighthawk Energy plc ("Nighthawk" or the "Company") are pleasedto announce an update on the Jolly Ranch project. Nighthawk and its partnerRunning Foxes Petroleum Inc ("Running Foxes"), the operator, each hold a 50 percent. working interest in the project. Jolly Ranch is located in Lincoln County, Colorado within the Denver Basin whereproduction is drawn from Mississippian, Pennsylvanian, Permian and Cretaceousreservoirs. As reported on 12 November 2007 a successful 3-D seismic programme covering 21square miles was shot over key sections of the Jolly Ranch project areaincluding the Bolero and Craig Ranch oilfields which were abandoned in the 1990sdue to low oil prices. In addition, a detailed soil gas and iodine geochemicalsurvey was completed and numerous anomalies correlating with targets identifiedby the 3-D surveys were identified. The land base of the Jolly Ranch project was initially 40,000 acres. A further44,000 acres was acquired in November 2007 bringing the project area to 84,000acres. Nighthawk and Running Foxes have continued their land acquisition programme.These efforts have resulted in the purchase of a further 55,557 acres, bringingthe total project area up to 139,577 acres. With the ongoing interpretation of the 3-D seismic data and other technicalstudies, additional drilling targets have been identified. As a result, thedrilling programme has been re-evaluated and an expanded programme for 2008 isnow planned. A refinement of targets has been undertaken and four new high priority drilllocations have been selected. These initial wells, termed the Four Kings,namely Elizabeth, Henri, Phillip and Sixtus, will test multiple stacked targetsin the Marmaton, Morrow, Atoka, Cherokee and Mississippian. Well permitapplications have been submitted to the State of Colorado for approval. Thefirst well to be drilled will be the Elizabeth which is scheduled to spud in thefirst quarter of 2008. While it is very early in the evaluation process of Jolly Ranch, Running Foxesestimates that the aggregate potential of the targets is in excess of 100million barrels of oil in place with significant potential to increase thatestimate based on the extent of the current seismic features seen. David Bramhill, Managing Director of Nighthawk commented "Since the originalacquisition of the Jolly Ranch project in August 2007 our expectations ofsuccessful future development have increased. Independent technical evaluationsand studies of historical production wells located on the Bolero and Craigoilfields drilled in the 1980s by BHP and Anshultz have indicated significantoil in place and identified additional by-passed oil zones. Whilst the projectis still at an early stage of development and the usual risk factors apply, theresults of the 3-D seismic programme and the substantial land acquisitions havegreatly increased the upside potential of Jolly Ranch." David Racher B.Sc (Hons) Geology, who is a consultant to Nighthawk and has over37 years of experience in the hydrocarbon industry and previously managed theLasmo plc onshore US portfolio in Kansas, Louisiana, South Dakota, Texas andWyoming, has reviewed and approved the technical information contained in thisannouncement. Enquiries: Nighthawk Energy plc 01271 882160 David Bramhill, Managing Director office@nighthawkenergy.net www.nighthawkenergy.net Hanson Westhouse Limited 0113 246 2610 Tim Feather tim.feather@hansonwesthouse.com Matthew Johnson matthew.johnson@hansonwesthouse.com Bishopsgate Communications Limited 020 7562 3350 Dominic Barretto dominic@bishopsgatecommunications.com This information is provided by RNS The company news service from the London Stock Exchange