Nighthawk Energy starts 3-well programme at Jolly Ranch oil project after 3D data locates sweet spot

Nighthawk Energy (AIM: HAWK) has commenced a three well drilling programme at its Jolly Ranch oil and gas project in Colorado after interpretation of 3D seismic data established potential sweet spots in the Cherokee and Atoka shale packages to add to several conventional targets.

The company holds a 50% interest in the project with operator Running Foxes Petroleum holding the balance.

The John Craig 11-2 well is targeting a large structural closure defined by the 3D survey in proximity to the Great Plains field. The well is located near Limon, an area to the north of the main project location, previously undrilled by the two companies. The other two wells, the Craig 6-4 and the Craig 16-32, are developmental wells located in the Bolero Field, which is part of the Jolly Ranch core development area.

Drilling has already commenced on Craig 16-32, a direct offset from three wells previously drilled by Nighthawk and Running Foxes, which are producing oil from Atoka and Cherokee shales, limestones and dolomites. Craig 6-4 is twinned with the previously drilled Craig 6-4 salt water disposal well, which has previously encountered oil bearing horizons in the Cherokee and Atoka shales.

Nighthawk also noted that the Great Plains field that was recently discovered by another operator in proximity of the Limon area has two wells that are producing at rates of 300-600 barrels of oil per day.

Back in February, Running Foxes forecast the production at the project to rise from 150 bopd (barrels of oil per day) to an initial target of 1,000 bopd during 2010.

Running Foxes has so far completed 13 vertical development wells targeting the Cherokee and Atoka shales, three shallower wells and two salt disposal wells, also having acquired an existing production well completed in an Atoka sandstone reservoir form the State of Colorado.

Shares in the company added 3.4% on the news.

http://www.proactiveinvestors.com.au/companies/news/6375/nighthawk-energy-starts-3-well-programme-at-jolly-ranch-oil-project-after-3d-data-locates-sweet-spot-6375.html