News

February 24, 2010

Nighthawk Releases Jolly Ranch Figures With Plans To Drive Up Production To 1,000 BPD This Year

Nighthawk Energy has for many years claimed that its Jolly Ranch project in Colorado has the potential to be a world-class play, not only holding conventional oil reserves but also large volumes of oil locked away in tight shale rocks. Last year, oil services giant Schlumberger appeared to back this claim, reporting a P50 oil-in-place estimate of 1.462 million barrels for two-thirds of the project area, which spans 370,000 acres of the southern part of the Denver Basin.

Despite this promise, many investors have grown impatient at the company’s ability to derive value from this project, in which it has invested over US$30 million over the past 18 months.  This is a potentially huge resource, in which Nighthawk has a meaty 50 per cent stake alongside operator Running Foxes Petroleum, yet production is a measly 150 barrels per day.  This tally is set to climb in 2010, however, with the AIM-quoted company planning to take production to 1,000 bpd gross in...