Advertisement

Nighthawk wells closed by excess water

Shares in Nighthawk, the US focused shale oil development and production company, fell on Thursday after it said weather problems had kept one of its mines closed.

Shares in Nighthawk, the US focused shale oil development and production company, fell on Thursday after it said weather problems had kept one of its mines closed.

Its wholly-owned Knoss 6-21 well in the Jolly Ranch Denver-Julesburg Basin in Colorado had to be shut shortly after production began in mid-December due to bad weather.

Advertisement - Article continues below

The firm said after the weather shut-in, very high initial fluid production from the well had exceeded available water disposal capacity in the area.

The problem was exacerbated by the well itself producing with a relatively high water cut.

The company is currently upgrading its water disposal capacity and said the Knoss 6-21 well will be brought back on-line when that work is complete around mid-January.

The John Craig 6-2 well, which also produces significant amounts of water, was shut-in for most of December.

News of the closures pushed shares down 7.8% by 0930 on Thursday.

But there was positive production news with Nighthawk trumpeting average total oil production in December of 276 barrels per day, a record monthly production level for its Smoky Hill and Jolly Ranch projects.

Average total oil production in the fourth quarter of 2012 reached 192 barrels, a record quarterly production level for the projects.

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/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
Visit/investments/investment-strategy/600861/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
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
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
Visit/investments/stockmarkets/600634/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

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/stockmarkets/601611/nasdaq-all-time-high-markets-and-the-real-economy
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020