30 Nov 2016 07:00
30 November 2016
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Company Update
Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update to current production levels, water flood injection wells, hedging and Rule 9 waiver.
Production Update
The Company's production continues to remain strong through the first ten months of 2016. The effects of a natural water drive in the Arikaree Creek field, along with the efforts from the production operations team, have kept 2016 production relatively flat for the year to October.
Gross and net* production, in barrels, for the first ten months of 2016 is summarised below.
Monthly | Daily Average | ||||||||||
Gross | Net | Gross | Net | ||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||
January | 43,961 | 63,606 | 36,017 | 52,183 | 1,417 | 2,052 | 1,162 | 1,683 | |||
February | 40,378 | 55,976 | 33,053 | 45,843 | 1,407 | 1,999 | 1,153 | 1,637 | |||
March | 42,720 | 59,382 | 34,942 | 48,688 | 1,314 | 1,915 | 1,078 | 1,570 | |||
April | 40,704 | 59,919 | 33,319 | 49,136 | 1,357 | 1,997 | 1,113 | 1,638 | |||
May | 40,780 | 59,406 | 33,410 | 48,710 | 1,302 | 1,916 | 1,068 | 1,571 | |||
June | 40,248 | 54,556 | 32,916 | 44,646 | 1,356 | 1,815 | 1,112 | 1,488 | |||
July | 43,045 | 56,116 | 35,162 | 46,018 | 1,382 | 1,810 | 1,133 | 1,484 | |||
August | 42,759 | 53,863 | 34,885 | 46,018 | 1,379 | 1,738 | 1,125 | 1,484 | |||
September | 38,551 | 48,982 | 31,459 | 40,161 | 1,285 | 1,633 | 1,049 | 1,339 | |||
October | 39,672 | 49,724 | 32,246 | 40,769 | 1,280 | 1,604 | 1,040 | 1,315 | |||
YTD | 412,818 | 561,530 | 337,409 | 462,172 | 1,354 | 1,847 | 1,106 | 1,520 | |||
*Net production is based upon Nighthawk's Net Revenue Interest of approximately 82%
Operations Update
As notified by the Company on 11 November 2016, Nighthawk has received a permit to commence injection of water into one of the two planned water flood injection wells. The second injection well is in the final stages of preparation and the Company expects the mechanical integrity test to be completed in early December 2016.
Hedging Update
The Company executed an additional financial hedging instrument on 22 November 2016. The instrument, a costless collar, establishes a $47 floor and a $52.75 ceiling for a total of 96,000 barrels of 2017 production. The Company has a further 17,350 barrels of 2017 production hedged at $75.30. This hedging strategy allows the Company to manage the commodity risk around oil prices. Additional volumes for 2017 are expected to be hedged as oil prices improve and the Company's water flood volumes come on line.
Waiver of Rule 9 of the UK Takeover Code
Further to its announcement of 30 September 2016, the Company continues the process of preparation of a Circular in relation to a waiver of Rule 9 of the Takeover Code. A further announcement will be made in due course.
Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
Enquiries:
Nighthawk Energy plc | |
Rick McCullough, Chairman | +1 303 407 9600 |
Kurtis Hooley, Chief Financial Officer | +44 (0) 20 3582 1350 |
Stockdale Securities Limited | +44 (0) 20 7601 6100 |
Richard Johnson | |
David Coaten |
Nighthawk Energy (HAWK)