Analyst Andrew Matharu reckons the operator has learnt some critical information about the completion and stimulation of shale wells in this part of the Niobara basin.
“They have also encountered some new geological horizons which could add to the potential of the Jolly Ranch asset,” the analyst added.
He stuck to his ‘buy’ rating and 10.7 pence per share target price following yesterday’s “very encouraging” results from the Knoss 6-21 well, which sent shares north.
Meanwhile, the Steamboat Hansen 8-10 well has been drilled, logged and cased successfully, and the Whistler 6-22 well, the fifth in the programme, will be drilled shortly.
Steamboat Hansen is the most northerly well drilled at the Jolly Ranch to date, and it has encountered a potentially oil bearing formation at a depth of 8,000 feet. Nighthawk said it is now considering how to proceed with the well.
The Westhouse analyst called the initial results from Knoss 6-21 and Steamboat Hansen “very encouraging”, lending credibility to Nighthawk’s drilling and completion strategy since taking over as operator of Jolly Ranch.
Shares were trading relatively flat today, down 0.05 pence to 5.7 pence.