HAWK - Nighthawk Energy
HAWK has been around in various threads on this board for a while now... and has been a bit of a let down. A year ago it was trading at 100p+ and was tipped to fly to 200p but that never happened. Instead it crashed down to the 20-30p range and floated around there for a good while.
The biggest 'news' recently has been the awaited Jolly Ranch Deal - where the expected sale price was quite a bit higher than the actual sale price, which in the short term saw the SP fall from 59p down to the high 30s low 40s.
This share has various other deals going on at the moment, but its not worth speculating to much over them just yet as with alot of hawk dealings speculation often leads to getting your fingers burnt. The phrase 'buy on the rumor, sell on the news' is gold dust to this share.
The price of oil is rising so in the medium/long term this is a pretty solid buy - its expected that there will be various other 'sell offs' in the future that will lead to a few good SP spikes. In the short term, be very cautious as this share price is going to be a rocky road.
Latest RNS - 10/06/09
Spoiler:
RNS Number : 6413T Nighthawk Energy plc 10 June 2009
NIGHTHAWK ENERGY PLC
INDEPENDENT TECHNICAL REVIEW OF THE DEVON OILFIELD
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce the results of an independent technical review in respect of the Devon Oilfield conducted by Oilfield Production Consultants Limited ("OPC"). The report includes an estimate of the stock tank oil initially in place using the probabilistic Monte Carlo method.
Nighthawk has an 80% interest in the Devon Oilfield waterflood project, located in Bourbon County, Kansas, covering an area of 3,034 acres. Running Foxes Petroleum Inc. is the operator and holds the remaining 20% of the project. The Devon Oilfield is located within the Cherokee Basin, a very extensive and prolific shallow oil and gas producing area.
The main study area, where most of the wells have been drilled to date, consists of 761 acres on the Vogel lease. A detailed 3-D geological model was built by OPC on this study area using Schlumberger's Petrel software, the market leading geological modelling package. Monte Carlo probabilistic calculations were then made using the range of porosity, oil saturation and gross rock volume parameters derived from the 3-D Petrel model.
The oil in place in the offset Devon acreage (2,273 acres), comprising the Cleaver, Graham, Gross, Madison and Philips lease areas, was also calculated.
Set out below are the key points from the OPC report:
Highlights:
THE MOST LIKELY MONTE CARLO PROBABILISTIC CALCULATION OF STOOIP OVER THE ENTIRE DEVON OILFIELD PROJECT COVERING 3,034 ACRES IS 26.25 MILLION BARRELS OF OIL.
AS ADDITIONAL WELLS ARE DRILLED IN THE OFFSET ACREAGE THE HYDROCARBON VOLUMES ARE EXPECTED TO RISE.
BOTH OIL AND GAS ARE CURRENTLY BEING PRODUCED AND SOLD FROM THE DEVON OILFIELD PROJECT, THE MOST RECENT PRODUCTION RATES BEING APPROXIMATELY 115 BOEPD. PRIMARY PRODUCTION OF OIL BEFORE THE IMPACT OF WATER INJECTION IS A VERY POSITIVE SIGN FOR THE EFFECTIVE DRILLING OF THE WELLS AND THE RESERVOIR POTENTIAL FOR PRODUCING HYDROCARBONS.
WATER INJECTION HAS COMMENCED AT DEVON OILFIELD, AND THE EFFECTS OF THE INJECTION WILL BE EVIDENT IN THE NEAR FUTURE. WELLS ARE DRILLED IN A "FIVE SPOT" PATTERN OF INJECTORS AND PRODUCERS WITH A TIGHT WELL SPACING OF 10 ACRES. ONCE THE PRODUCTION RESPONSE FROM THE WATER INJECTION IS APPARENT AT THE PRODUCTION WELLS A FORECAST OF FIELD PRODUCTION CAN BE ESTIMATED AND WATERFLOOD RESERVES ASSIGNED TO THE FIELD. SCOPING SIMULATION RUNS COMPLETED BY OPC SUGGEST THAT RATES OF 5-20 BARRELS OF OIL PER DAY ARE POSSIBLE FROM EACH INDIVIDUAL PRODUCTION WELL.
OIL FROM THE DEVON OILFIELD PROJECT IS TRUCKED TO A NEARBY PROCESSING FACILITY AND GAS IS SOLD INTO A NEARBY PIPELINE. SINCE JULY 2008 APPROXIMATELY 5,000 STB OF OIL FROM PRIMARY PRODUCTION AND 20 MMSCF OF GAS HAVE BEEN SOLD.
THE MAIN RESERVOIR IS GEOLOGICALLY CONTINUOUS OVER A LARGE AREA INCLUDING THE ENTIRE ACREAGE OWNED BY NIGHTHAWK.
THE SHALLOW RESERVOIR DEPTH OF LESS THAN 500 FEET RESULTS IN VERY LOW DRILLING COST PER WELL (LESS THAN US$50,000). THUS, A LARGE NUMBER OF WELLS ARE BEING DRILLED TO THOROUGHLY DEFINE THE GEOLOGY OF THE FIELD AND EFFICIENTLY DRAIN THE RESERVOIR. THE SHALLOW DEPTH AND LOW RESERVOIR PRESSURE ALSO ALLOWS FOR THE USE OF INEXPENSIVE AND SIMPLE SURFACE FACILITIES. NO EXPENSIVE HIGH PRESSURE EQUIPMENT OR PIPELINES ARE REQUIRED.
THE RESERVOIR PRESSURE IS LOW (LESS THAN 200 PSIA) AND THE OIL CONTAINS VERY LITTLE SOLUTION GAS. THUS, THERE IS LITTLE NATURAL ENERGY TO HELP PRODUCE THE OIL FROM THE RESERVOIR. IN THIS TYPE OF LOW PRESSURE RESERVOIR, WATER INJECTION IS COMMONLY USED TO DISPLACE OIL TO THE PRODUCTION WELLS. THIS IS A SIMPLE STRAIGHT FORWARD PROCESS WHICH HAS BEEN APPLIED SUCCESSFULLY FOR DECADES ON SIMILAR FIELDS IN THE US AND ELSEWHERE IN THE WORLD. TYPICAL RECOVERY FACTORS IN THIS TYPE OF WATERFLOOD PROJECT WOULD BE EXPECTED TO RANGE BETWEEN 15-25% WITH CAREFUL DESIGN AND IMPLEMENTATION OF THE WATERFLOOD.
SIGNIFICANT INFRASTRUCTURE IS ALREADY IN PLACE AT THE DEVON OILFIELD. A WATER INJECTION PLANT HAS BEEN INSTALLED, FLUID STORAGE SITES CONSTRUCTED AND SURFACE FLOWLINES PUT IN PLACE TO TRANSPORT THE PRODUCED OIL AND GAS.
Monte Carlo STOOIP for Total Area (3,034 acres)
STOOIP, MMstbStudy STOOIP, STOOIP, MMstbTotal
Area (761 acres) MMstbAdditional (3,034 acres)
Acreage (2,273
acres)
Downside case 4.58 2.73 7.31
Most likely case 10.53 15.72 26.25
Upside case 16.24 43.65 59.89
Study Background
The Devon Oilfield is located within the Cherokee Basin, located in south eastern Kansas and north eastern Oklahoma. The Cherokee Basin is a prolific shallow oil and gas producing area with production from Pennsylvanian, Mississippian, and Ordovician reservoirs from less than 4,000 feet.
The oldest strata are the Cambrian sandstones and carbonates that lie directly on the Pre-Cambrian rocks. Overlying the Cambrian sediments are the Arbuckle Group of Ordovician age which consist of interbedded dolomites and limestones with minor shales. Overlying the Arbuckle Group are the Mississippi limestones which can be a significant hydrocarbon producer. The Cherokee Group of Pennsylvanian age overlies the Mississippian strata and is composed of predominantly shales and sandstones with minor limestones and coals. The Cherokee Group also represents a deltaic sequence that extends across all of the Cherokee Basin. There are several sandstones that are found within the group, however the Bartlesville Sandstone reservoir has produced the majority of hydrocarbons in the basin.
The total acreage held by Nighthawk at the Devon Oilfield is 3,034 acres. OPC has studied in detail 761 acres in the Vogel lease area, for which there are a large number of well penetrations. A detailed study using Petrel software and Monte Carlo simulation was performed to estimate oil in place.
The oil in place in the remaining offset acreage (2,273 acres) in the Cleaver, Graham, Gross, Madison, Phillips and Wade leases was then calculated. The offset leases are contiguous with the Vogel lease and the same geological formations are known to extend into these offset leases. Thus, the oil in place was estimated in these offset leases by taking the Monte Carlo estimates per acre and risking them for presence of sands. For the downside case it was assumed that the additional acreage would only contain 20% of the hydrocarbons/acre as in the study area; for the most likely case it was assumed that the additional acreage would contain 50% of the hydrocarbons/acre in the study area, and for the high case it was assumed that the additional acreage would contain 90% of the hydrocarbons/acre as in the study area.
Managing Director, David Bramhill, commented "In keeping with our strategy of defining value across our portfolio, we are delighted with OPC's findings on what is effectively the prototype of Nighthawk's waterflood projects. We believe that the OPC study offers an excellent overview of the current position of the Devon project and highlights the rapid progress made during the last six months. We anticipate further positive news from the OPC technical study, currently underway on the nearby Buchanan Group, which has an acreage position ten times the size of Devon."
Tim Heeley B.Eng (Hons) a member of the Society of Petroleum Engineers, Fellow of the Geological Society of London and Chartered Energy Engineer, who is Commercial Director of Nighthawk and has over 12 years of experience in the hydrocarbons industry has approved the technical information contained in this announcement. Enquiries: Nighthawk Energy plc
David Bramhill, Managing 01271 882160
Director 07914 050512
RNS - 03/06/09
Spoiler:RNS Number : 2488T
Nighthawk Energy plc
03 June 2009
Nighthawk Energy plc
Quantification of the Devon Oilfield and Buchanan Group Waterflood Projects
Well Status at Devon Oilfield and Buchanan Group Projects
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM : HAWK), the US focused hydrocarbon production and development company are pleased to announce the quantification of the Company`s subsurface assets in respect of the Devon Oilfield ("Devon") and Buchanan Group ("Buchanan") waterfloods and a well status report on both projects.
Nighthawk holds an 80 and 50 per cent. working interest in the Devon and Buchanan projects respectively. The operator, Running Foxes Petroleum Inc., holds the remaining equity.
The last 18 months has seen ongoing major drilling campaigns being conducted on both projects. Numerous wells have been drilled and in-house evaluations completed. Nighthawk is now in a position to mandate third party expertise to provide an independent review in respect of the Devon and the Buchanan projects as part of the overall strategy to define value within the portfolio.
Oilfield Production Consultants Ltd ("OPC") has been commissioned by Nighthawk to complete this exercise which will also include the calculation of the oil in place ("OIP") in the core areas of the projects as well as in the peripheral areas where development is ongoing. OPC are calculating the OIP in the reservoir intervals using both probabilistic and deterministic methods. These exercises include the review and assessment of open hole log analysis, core and production data, reservoir rock petrophysical properties and the determination of reservoir fluid saturations and productivity.
In addition, 3-D Petrel petrophysical models are to be generated. These models will provide information to calculate the OIP, provide 3-D visualisation of the prospective waterflood intervals and assist in the compilation of structure and net isopach maps.
Analysis for the first of these reports covering the Devon project is well advanced and the current preliminary results are considered to be well in line, if not markedly better, than Company expectations. Final results are anticipated before the end of June.
Evaluation for Buchanan, which is a considerably larger project area than Devon, is underway. Results of this study are expected during Q3 2009.
Well Status at Devon Oilfield and Buchanan Group Projects
Devon
The Devon project covers an area of approximately 3,000 acres and is located in Bourbon County, Kansas.
138 wells have been successfully drilled or currently permitted on the project, of which the status is as follows:
54
- Producing
43
- Awaiting completion
7
- Shut in
16
- Injection
18
- Permitted
Buchanan
The Buchanan project covers approximately 32,000 acres and is located in Vernon and Bates Counties, Missouri.
109 wells have been successfully drilled or are currently permitted on the project, of which the status is as follows:
39
- Producing
36
- Awaiting completion
7
- Injection
27
- Permitted
Both Devon and Buchanan projects are at various stages of water injection. Primary oil and natural gas production continues on both projects and product is being sold. Once the impact of this water injection process takes effect the expected production rates range between 5-20 barrels of oil per day per well.
For optimum recovery, wells are orientated in a "five spot" pattern on ten acre spacing at Devon and Buchanan. On this basis there are in excess of 3,500 potential well sites within the current project area.
Pipelines, surface facilities, pump jacks and other production infrastructure continue to be installed at both projects and drilling is ongoing.
Managing Director, David Bramhill, commented "To now be in a position with Devon and Buchanan to be able to obtain independent opinion in respect of our subsurface resources is a major step forward and a further milestone in Nighthawk`s project development plan. Preliminary indications of oil in place at Devon, as calculated by OPC are particularly pleasing and support the pace and magnitude of the development programmes being seen at Devon and the nearby Buchanan project."
Enquiries:
Nighthawk Energy plc
David Bramhill, Managing Director
Tim Heeley, Commercial Director
07914 050512
07956 525433
020 7887 1454
Hanson Westhouse Limited
Tim Feather
Matthew Johnson
020 7601 6100
tim.feather@hansonwesthouse.com
matthew.johnson@hansonwesthouse.com
Bishopsgate Communications Limited
Nick Rome
020 7562 3395
nick@bishopsgatecommunications.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
Jolly Ranch RNS
Spoiler:
Nighthawk Energy plc
Sale of Interest in Jolly Ranch Group Project
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce that on 31 May 2009 Nighthawk Production LLC ("Nighthawk Production"), a wholly-owned US subsidiary of Nighthawk, and Running Foxes Petroleum Inc. ("Running Foxes"), executed a Purchase, Sale and Option Agreement (the "Agreement") with San Severina Holdings SA, a Swiss based investment company ("San Severina"), in respect of the Jolly Ranch Group Project ("Jolly Ranch").
The Jolly Ranch project, located in Elbert, Lincoln and Washington Counties, Colorado, US, is a major hydrocarbon production and development venture comprising approximately 370,000 gross acres (282,000 net acres).
San Severina has agreed to acquire a 20 per cent. working interest (10 per cent. from each of Nighthawk Production and Running Foxes) in the core area of Jolly Ranch, covering approximately 50,000 net acres.
In addition, through options over six blocks covering the remaining 232,000 net acres (the "Options"), San Severina has the right to acquire a 20 per cent. interest (10 per cent. from each of Nighthawk Production and Running Foxes), in the remaining areas of Jolly Ranch, including the adjacent Middle Mist and Mustang Creek areas.
The initial purchase consideration to be paid, net to Nighthawk Production, in respect of the purchase of the working interest in the core area of Jolly Ranch and the grant of the Options, is US$10,940,000. Completion of the transaction and settlement of the initial consideration is due by 15 June 2009. Assuming the exercise of all of the Options, the additional consideration, net to Nighthawk Production, will be an aggregate of US$29,040,000, making a total transaction value of US$39,980,000.
On completion of the Sale, Nighthawk Production and Running Foxes will each retain a 40 per cent. interest in the core area of Jolly Ranch and, prior to the exercise of the options, a 50 per cent. interest in the remainder of the project acreage. Running Foxes continues as operator. All drilling and development costs going forward will be met according to each partner's new equity percentage working interest.
San Severina's project interest will be managed by Ascent Resources plc ("Ascent") through their asset management joint venture and 20 per cent. of San Severina's interest (a 4 per cent. interest in the project) will be assigned to Ascent on completion.
David Bramhill, Managing Director of Nighthawk, commented: “We are delighted to welcome San Severina as our partner in Jolly Ranch. The transaction demonstrates the value being created for Nighthawk shareholders and establishes an attractive initial benchmark value for the project. Together with our new partner, we now intend to accelerate the development of Jolly Ranch, which we believe to be a world class project in the making.”
Enquiries:
Nighthawk Energy plc
David Bramhill, Managing Director
Tim Heeley, Commercial Director
01271 882160
020 7887 1454
07956 525433
office@nighthawkenergy.net
www.nighthawkenergy.net
Hanson Westhouse Limited
Tim Feather
Matthew Johnson
020 7601 6100
tim.feather@hansonwesthouse.com
matthew.johnson@hansonwesthouse.com
Bishopsgate Communications Limited
Nick Rome
020 7562 3395
nick@bishopsgatecommunications.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
Official Site - NighthawkEnergy.net
Stock Exchange - LSE: Nighthawk Energy
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