Nighthawk Energy plc Company Update (1248T)

TIDMHAWK

RNS Number : 1248T

Nighthawk Energy plc

03 January 2017

3 January 2017

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Company Update

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update to current production levels, water flood injection wells, and hedging.

Production Update

Gross and net* production, in barrels, for the first eleven months of 2016 is summarised below.

 
                              Monthly                            Daily Average 
             -----------------------------------------  ------------------------------ 
                     Gross                  Net              Gross            Net 
               2016        2015       2016      2015     2016    2015    2016    2015 
             --------  -----------  --------  --------  ------  ------  ------  ------ 
 
 January      43,961      63,606     36,017    52,183    1,417   2,052   1,162   1,683 
 February     40,378      55,976     33,053    45,843    1,407   1,999   1,153   1,637 
 March        42,720      59,382     34,942    48,688    1,314   1,915   1,078   1,570 
 April        40,704      59,919     33,319    49,136    1,357   1,997   1,113   1,638 
 May          40,780      59,406     33,410    48,710    1,302   1,916   1,068   1,571 
 June         40,248      54,556     32,916    44,646    1,356   1,815   1,112   1,488 
 July         43,045      56,116     35,162    46,018    1,382   1,810   1,133   1,484 
 August       42,759      53,863     34,885    46,018    1,379   1,738   1,125   1,484 
 September    38,551      48,982     31,459    40,161    1,285   1,633   1,049   1,339 
 October      39,672      49,724     32,246    40,769    1,280   1,604   1,040   1,315 
 November     33,315        46,581   26,990    38,108    1,111   1,553    900    1,270 
 YTD          446,133    608,111     364,399   500,280   1,332   1,815   1,088   1,493 
             ========  ===========  ========  ========  ======  ======  ======  ====== 
 

*Net production is based upon Nighthawk's Net Revenue Interest of approximately 82%

Operations Update

As reported by the Company on 30 November 2016, Nighthawk received a permit on 11 November 2016 to commence injection of water into one of the two planned water flood injection wells. On 29 December 2016, the Company received a permit to commence injection on the second well.

As reported by Nighthawk on 16 December 2016, the Company reached a settlement with Cascade Petroleum LLC. One of the provisions of the settlement was that Nighthawk was to complete an up-hole zone in the Monarch 10-15 well, at the Company's expense, estimated to be approximately US$75,000. A workover rig has been commissioned and the re-completion has commenced. Results of the up-hole completion will be announced in due course.

Hedging Update

The Company currently has the following hedging instruments in place:

 
                  Price                Total Volumes            Term 
           -----------------  ------------------------------  ------- 
  Swap           $ 75.30                              17,350   Nov-17 
  Swap           $ 52.45                              48,000   Jun-17 
  Collar     $47.00 - $52.75                          88,000   Dec-17 
 

As a result of these instruments, the Company's weighted average price on the hedged volume will range between be $52.01 and $54.62 per barrel for the first half of 2017. The hedging instruments allows the Company to manage the commodity risk around oil prices. Additional volumes for 2017 are expected to be hedged if oil prices improve and the Company's water flood pilot project volumes come on line.

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

Enquiries:

 
 Nighthawk Energy plc 
 Rick McCullough, Chairman              [phone] 
 Kurtis Hooley, Chief Financial 
  Officer                          [phone] 
 
 Stockdale Securities Limited      [phone] 
 Richard Johnson 
 David Coaten 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 03, 2017 02:00 ET (07:00 GMT)