Colorado based oil firm Nighthawk Energy (LON:HAWK, OTCQX:NHEGY) has now begun a new drill programme at the Jolly Ranch project.
Four wells are planned over the next two months – with Nighthawk having 100 per cent interest in each.
Work is already underway on the John Craig 6-2 well, the first scheduled well in the programme. This is ‘high impact opportunity’ is being drilled to a depth of 4,000 metres. It is expected to cost US$1 million to drill and take 15 days to drill and test.
"We have now commenced the second stage of our development plan since taking operatorship of the Jolly Ranch project, with the drilling of the first new wells for nearly three years,” said chairman Stephen Gutteridge.
“All four planned wells have clearly defined, highly promising, structural targets and we are very comfortable in taking on this program on a 100% basis.
Nighthawk this morning also told investors that production levels continue to recover, with a 45 per cent improvement in the third quarter – averaging 55 barrels a day in the three month period, and more recently achieving a rate of 60 barrels a day.
Additionally Nighthawk said it has signed new leases with the Jolly family. The leases are for 4,674 acres of high priority land for three years. It also released 13,761 acres of land that are not critical to the development of Jolly Ranch.
Nighthawk said the new leases were agreed on ‘attractive terms’.
“Production from existing wells continues to recover and our active lease management approach is helping us optimize our cash resources,” Gutteridge added.
“We are also continuing to work with our US legal counsel in formally pursuing the ongoing claims against Running Foxes Petroleum."