Jolly Ranch is located within the Denver Basin in eastern Colorado where production is drawn from Carboniferous Pennsylvanian, Permian and Cretaceous reservoirs.
Primary targets are the Marmaton and Cherokee carbonates and secondary objectives are the Morrow, Atoka and Cretaceous sandstones. The newly acquired acreage is adjacent to the south of the existing 25,000 acres held at Jolly Ranch and brings the total project area held to 40,000 acres. The total consideration is US$525,000, of which Nighthawk will pay 50 percent. The new acreage includes two oil fields, Bolero and Craig Ranch, which were abandoned in the late 1980s due to poor completion practices and low oil prices. The Bolero field produced oil from the Cherokee carbonates and the Craig Ranch field produced oil and gas from the Morrow and Atoka sandstones. As a result of the acquisition, Nighthawk and Running Foxes are adding a further 9 square miles of 3-D seismic, covering the Bolero field, to the existing 12 square mile program over the Jolly Ranch project area. In addition, a re-entry well on the Bolero field is planned for the third quarter of 2007 with the intention of recompleting and placing on production. Depending on the production test and seismic survey results, a further two wells are planned to be re-entered and re-completed in the fourth quarter of 2007.
The Bolero field main pay horizon, the Cherokee B zone, is present over the entire project area, containing approximately 1,000 drilling locations on 40 acres spacing. In addition, a further ten known oil producing horizons will be tested during drilling.
The source rocks for the Pennsylvanian reservoirs are also known to be generating hydrocarbons within the project area and represent a potentially high impact shale gas target.
David Bramhill, Managing Director of Nighthawk commented, "We are delighted to acquire further acreage at Jolly Ranch. The project is located in an area with excellent services for the industry and a strong market for oil and gas. We believe it has the capability of being a large potential resource for Nighthawk."
Most Popular Articles
From the Career Center
Jobs that may interest you