News

February 19, 2009

Nighthawk Energy Finds Gas At Devon And Continues Talks About Jolly Ranch Sell Down

It is now almost two years since Nighthawk Energy made its debut on AIM. Back then the company’s sole asset was a 37.5 per cent interest in the Cisco Springs stranded gas project in Utah. Today, little is heard of Cisco Springs and some analysts believe the project should be sold off to raise funds to push forward with the newer additions to the Nighthawk portfolio, particularly a very promising oil shale play in Colorado and shallow oil waterflood projects in Kansas and Missouri that look set to eclipse Cisco Springs and generate some real production and cash flow growth over the near term.

This week one of those waterflood projects, the Devon Project in Kansas, revealed another dimension when it yielded a new gas reservoir. The Graham 6-36D-3 well struck shallow gas in the Lower Bartlesville formation, flowing 627,000 cubic feet per day on free flow. It has now been chocked back and put into production at a modest rate of 160,000 cf/d. It may not be much but these wells are cheap to drill and can be quickly put into production to start generating revenues for the AIM...