Company Information for Nighthawk Energy plc

AIM-HAWK

www.nighthawkenergy.net

Company stock charts - 12 Month chart

AIM; HAWK

View full financial data

Company Statement

AIM quoted Nighthawk Energy plc (ticker HAWK) is a dynamic UK registered energy company with a focus on building cash flow from producing hydrocarbon assets in the USA, a country with low political risk and a major shortfall in domestic gas production.

Nighthawk’s core asset is a 50 per cent. working interest in the Cisco Springs natural gas production and development project located in Grand County, Utah.

In addition the Company has significant interests in several projects which include the Devon Oilfield, Kansas, Centurion, Kansas, Jolly Ranch, Colorado, Cliffs, Illinois and the Buchanan and Worden, Missouri.

Operations and Technology

CISCO SPRINGS
In July 2006, Nighthawk Production LLC, a wholly owned US subsidiary of Nighthawk, executed an agreement with Running Foxes to acquire a 25% working interest in the Cisco Springs natural gas production and development project in Grand County, Utah, which at that time covered an area of approximately 8,000 acres.

Subsequent to this acquisition, following positive drilling results from Cisco Springs, Nighthawk acquired a further 12.5% of the project increasing its interest to 37.5%. In addition, the Company has an Area of Mutual Interest agreement in-place with Running Foxes under which the Company has first option for the purchase on a pro-rata basis of any new acreage that becomes available, either by public auction or private sale.

Following a series of successful drill results and strategic transaction with the operator, Running Foxes Petroleum Inc. Nighthawk has increased its working interest to 50%.

Through acquisitions, the project area has increased to approximately 18,000 acres. It is the intention of the Company to acquire prospective new acreage as and when it becomes available.

The acquisitions included proportional ownership of an Ingersoll-Rand drilling rig, a work-over rig, 25 miles of pipeline connected to a national distribution system, numerous oil storage tanks and other project related equipment.

DEVON OILFIELD
In June 2007, Nighthawk acquired from Mountain Energy Corporation an 80% interest in the Devon Oilfield waterflood project (formerly known as the Vogel Bartlesville project) in Bourbon County, Kansas, covering, initially, an area of 160 acres. Running Foxes is the operator and holds the remaining 20% of the project.

The Devon Oilfield is located within the Cherokee Basin, a prolific shallow oil and gas area producing from Carboniferous Pennsylvanian, Mississippian, and Ordovician reservoirs at less than 4,000 feet.

During drilling a well, Vogel 16-36 for coal bed methane (“CBM”), a third party company discovered a Pennsylvanian Bartlesville Sandstone section indicating excellent oil saturation and reservoir continuity. A further well, Vogel 10-36, was drilled and net pay intervals were logged in both the Upper and Lower Bartlesville channel sandstones. Based on log analyses from these two wells, the oil in-place over 160 acres was estimated by Running Foxes to be in excess of 3 million barrels gross.

JOLLY RANCH
In June 2007, Nighthawk acquired a 50% interest in the Jolly Ranch project, in Lincoln County, Colorado for a consideration of US$450,000. Running Foxes is the operator of the project and holds the remaining 50%.

The project covers in excess of 40,000 acres and lies within the Denver Basin from which significant hydrocarbons have been produced from Carboniferous Pennsylvanian sandstones and carbonates. This project represents a potentially high impact investment.

Two oilfields, Bolero and Craig Ranch, which were abandoned in the late 1980s and early 1990s respectively, due to now outdated completion practices and low oil prices are contained within the project area. The Bolero oilfield produced oil from the Cherokee carbonates and the Craig Ranch oilfield from Atoka carbonates and shales.

CENTURION
In June 2007, Nighthawk acquired a 50% interest in the Centurion project, covering 12,000 acres in Sumner County, Kansas, for a consideration of US$300,000. Running Foxes holds the remaining 50% and is the operator of the project.

The area is within the Sedgwick Basin and has seen prolific conventional oil production from the Ordovician to Carboniferous Arbuckle, Simpson, Viola, Mississippian and Cherokee sandstones and carbonates at depths of less than 4,000 feet.

The Devonian Chattanooga Shale is also a primary target and has produced hydrocarbons through most of the central and eastern US since the 1920s. This shale has also been a major producer in the Anadarko, Appalachian, Williston, Michigan and Illinois Basins. The Simpson and Cherokee shales, both of which are proven hydrocarbon sources, are also targets.

CLIFFS
In June 2007, Nighthawk acquired an 80% interest in the Cliffs Shale Gas project, covering 15,591 acres in Clark, Crawford, Cumberland, and Jasper Counties, Illinois, from Mountain Energy Corporation for a consideration of US$935,000.

The project is located within the Illinois Basin, a significant producer of hydrocarbons, which has yielded in excess of four billion barrels of oil from numerous reservoirs at less than 2,900 feet. Production has been derived from conventional reservoirs such as the Devonian and Silurian carbonates and the Rosiclare, Aux Vases, Benoist and St. Genevieve sandstones. The original source of over 90% of this production is the Devonian New Albany Shale at less than 4,000 feet which is the gas window and is the primary target of the Cliffs project.

The potential gas in-place within the New Albany Shale in the whole Illinois Basin has been estimated by the Devonian Shale Task Group of the National Petroleum Council Committee to be approximately 86 trillion cubic feet.

BUCHANAN & WORDEN
Nighthawk has acquired a 50 per cent. interest in the Buchanan and Worden projects, located in Vernon County, Missouri within the Cherokee Basin, encompassing a combined acreage of 774 acres and targeting the same Bartlesville sandstone reservoirs as at the Devon Oilfield project. Running Foxes is the operator and holds the remaining 50 per cent of the projects.

Missouri is surrounded on three sides by large oil producing basins, the Illinois, Arkoma and Anadarko. Missouri’s oil occurs in sandstones of the Pennsylvanian age Cherokee Group at shallow production depths.

There are a number of operating companies in the area currently acquiring land to either water or steam flood at shallow depths. Nighthawk and Running Foxes intend to permit four test wells on each project and will continue to seek additional acreage where significant oil reserves have previously been identified as at the Buchanan and Worden projects.

NIGHTFOX DRILLING LLC
Nighthawk Production, a wholly owned US subsidiary of the Company, and Running Foxes jointly own a significant amount of oil service equipment, including an Ingersoll-Rand drilling rig and a work-over rig.

The ownership of this equipment has been transferred into a newly formed company, Nightfox Drilling LLC in which Nighthawk Production has a 37.5% interest and Running Foxes the balance.

The Rocky Mountain region is now one of the most important gas producing areas in the US and production is expected to increase substantially to meet rising demand. As a result, hydrocarbon exploration and development activity in Utah is accelerating, particularly in the Uinta, Piceance and Paradox Basins. The Cisco Springs project is located on the Uncompahgre Uplift, which forms the boundary of these three basins.

Nighthawk and Running Foxes intend that the Nightfox owned equipment, when not being used at the Cisco Springs project, will be leased at commercial rates to third parties.

DESPERADO TRUCKING INC.
Nighthawk Production and Running Foxes acquired the business of Desperado Trucking Services Inc. (“Desperado”), a Kansas-based oil services company, in June 2007 for a purchase price of US$450,000.

The assets consist of two water tankers and trucks used for the transportation of water and fraccing fluids together with all necessary operational permits. As a result of this transaction, Nighthawk Production and Running Foxes each hold 50% of the business and assets.

The business of Desperado is cash generative through its existing contracts with third parties. In addition, the equipment will be used in the Devon Oilfield, Bourbon County, Kansas in which Nighthawk and Running Foxes hold 80% and 20% interests respectively.

The acquisition of Desperado is not only expected to significantly reduce the costs of the necessary water trucking, but also to reduce down time on water hauling.

Geographical Spread

USA

Board of Directors and Key Management

Dr. Roger Norwich	Non-Executive Chairman
David Bramhill	Managing Director
Joe O'Farrell	Executive Director
Geoffrey Metzger	Non-Executive Director
Michael Thomsen	President of US Subsidiaries
David Racher	Technical Consultant
Brian Marshall	Financial Controller and Company Secretary

Company Address

Castlemead
Lower Castle Street
Bristol, United Kingdom BS1 3AG


Telephone:	+44 (0)117 917 5204
Facsimile:	+44 (0)117 917 5005
Email:	office[at]nighthawkenergy.net
Website:	http://www.nighthawkenergy.net

Nominated Brokers

Campbell O’Connor & Co.
8 Cope Street,
Dublin 2,
Ireland

Hanson Westhouse Limited
One Angel Court
London EC2R 7HJ
United Kingdom

Nominated Advisors

Hanson Westhouse Limited
One Angel Court
London EC2R 7HJ
United Kingdom

Most Recent Statement

21/08/08 - Jolly Ranch Update
16/06/08 - Jolly Ranch and Middle Mist Project Updates
08/06/08 - Buchanan and Worden Projects Update
02/06/08 - Devon Oilfield Update
06/05/08 - Jolly Ranch Update
29/04/08 - Jolly Ranch Update

To top