Shares of Colorado focused shale oil producer Nighthawk Energy rallied as investors cheered a positive production and operations update at its Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin.
The group confirmed that the Big Sky 4-11 well, located on the Arikaree Creek oil field, started production May 24th 2013.
"Initial production rates since coming on-stream are ahead of the company's expectations and have been in the range of 300-400 barrels of oil/day with no water production," Nighthawk said in a company update.
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Meanwhile production from the Steamboat Hansen 8-10 well, which is also located on the Arikaree Creek oil field, continues at a steady rate of 280-300 barrels of oil/day with no water production.
Additional producing wells located on the Jolly Ranch project are currently contributing a further 80-100 barrels of oil/day in total, the group explained.
Nighthawk said further increases in production are anticipated from the current drilling and work-over programmes.
Shares of Nighthawk climbed 8.02% to 4.85p at 12:00 in London.
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