Source - RNS
RNS Number : 3766J
Nighthawk Energy plc
09 September 2016
 

  9 September 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, operations and existing litigation matters.

 

Production Update

 

The Company's production continues to remain strong through the first seven 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 production relatively flat as compared to last year for the first seven months. 

 

Gross and net* production, in barrels, for the first seven months of 2016 is summarised below.

 

 

Monthly

 

Daily Average

 

Gross

 

Net

 

Gross

 

Net

 

2016

2015

 

2016

2015

 

2016

2015

 

2016

2015

 

 

 

 

 

 

 

 

 

 

 

 

January

43,915

63,605

 

36,031

52,183

 

1,417

2,052

 

1,162

1,683

February

40,809

55,979

 

33,444

45,843

 

1,407

1,999

 

1,153

1,637

March

40,720

59,382

 

33,392

48,688

 

1,314

1,915

 

1,078

1,570

April

40,704

59,919

 

33,374

49,136

 

1,357

1,997

 

1,113

1,638

May

June

July            

40,358

40,677

42,846

59,406

54,446

56,119

 

33,093

33,355

35,134

48,710

44,646

46,018

 

1,302

1,356

1,382

1,916

1,815

1,810

 

1,068

1,112

1,133

1,571

1,488

1,484

 

 

*Net production is based upon Nighthawk's Net Revenue Interest of approximately 82%

 

Operations Update

 

The Arikaree Creek Water Pilot Project was finally approved in early June 2016. The Company has commenced working on the Pilot with the final engineering design phase now completed and the equipment procurement phase beginning. Construction and installation of the water gathering lines and the water injection lines should commence in the second half of September. The water injection and the polymer facilities are currently being manufactured and are anticipated to be delivered, installed, tested, and become operational in late October.

 

Nighthawk has been negotiating with Cascade (Denham) in regards to the last two commitment wells located within the Monarch Joint Development Area. Nighthawk believes the parties may soon finalize negotiations around a proposed settlement. Once this is reached, Nighthawk will announce the results in a future news release.

 

 

Litigation Matters

 

As previously disclosed, the ongoing litigation between Running Foxes Petroleum, as plaintiff, and the Company, is the final stages of being settled. There is currently only one remaining outstanding claim and the Company believes that the allegations contained in the remaining complaint are baseless and groundless actions, and will vigorously defend against the remaining complaint. Based on participation in the pre hearing conference and related court filings, the Company has recently been approached about the two parties trying to negotiate a settlement prior to the scheduled court date of September 20, 2016. 

 

In addition, Nighthawk Production has recently filed a formal complaint against Running Foxes Petroleum and American Patriot Oil and Gas Limited, an Australian company listed on the ASX, for a seismic disclosure breach in connection with a Joint Venture the two companies have announced involving acreage near us.

 

 

 

 

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

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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