Nighthawk Energy unveils highly successful drilling campaign

On Monday morning Nighthawk Energy provided a drilling update on its Steamboat Hansen 8-10 well, the highlight of which was that it confirmed the potential of a shale formation located in the northern part of its acreage.

On Monday morning Nighthawk Energy provided a drilling update on its Steamboat Hansen 8-10 well, the highlight of which was that it confirmed the potential of a shale formation located in the northern part of its acreage.

As well, the AIM listed and US focused shale oil development and production company unveiled the discovery of a Mississippian-age conventional oil formation, which may have positive implications for its other properties.

The above was the fourth well of the five it aimed to drill this year at its Jolly Ranch project in the Denver-Julesburg Basin, Colorado.

Further testing and completion of the Cherokee shale formation in this area will not be undertaken until the newly discovered deeper oil reservoir is produced.

This area will now be known as the Smoky Hill project, Nighthawk explained.

The conventional oil bearing reservoir was detected at a depth of just over 8,000 feet and internal analysis indicates potential oil initially in place of 4 to 8 million barrels.

Initial analysis of the oil shows it to be a light 38-40 degree API, slightly viscous oil. An update on production rates will be issued once steady production has been established.

The same well identified oil producing potential in the Cherokee shale formation at a depth of around 7,400 feet.

Mississippian formation is a new oil play in this areaAs regards the first reservoir, Stephen Gutteridge, Chairman of Nighthawk, said: "(...) This discovery opens up the possibility of further Mississippian potential which is a very active play in Western Kansas, North Western Oklahoma, Texas panhandle and further east in Colorado, but is a completely new oil play in this part of the Denver-Julesberg basin and potentially adds substantial value to our large acreage position in this area."

But there were also some setbacks

The downside of the Hansen 8-10 success is that it led to a slight delay in bringing the Knoss 6-21 well into production.

As well, the outfit reported a drop in oil production at its John Craig 6-2 well, after the oil/water ratio at that well fell over the previous two weeks, resulting in said fall in production.

Lastly, the company announced that it still planned to re-complete the Pike's Peak Williams 4-30 well, which has not yet produced, but this is now likely to be in the New Year it said.

AB

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020