Nighthawk Confirms Taos Oil Find in Colorado
Nighthawk, the U.S. focused oil development and production company, announces an update on the drilling and development of the Arikaree Creek oilfield at its 100-percent controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado.
- · Logging and coring of the Taos 1-10 well has identified an oil column in the Mississippian Spergen formation consistent with discoveries at Steamboat Hansen 8-10 and Big Sky 4-11 wells
- Testing and completion of the Taos 1-10 well is underway
- The drilling rig has been retained to immediately drill two further Arikaree Creek appraisal wells, the Silverton 16-10 and the Snowbird 9-15 wells
- Convertible loan notes to the value of $5.8 million (GBP 3.8 million) have been issued to fund additional drilling and development costs
Arikaree Creek Development
Taos 1-10 Well
The Taos 1-10 well has been drilled to a target depth of 8,315 feet and the well has been cored, logged and cased for production. Data from the coring and logging has identified a minimum of 35 feet of gross pay interval at 8,056 feet in the target formation of the Mississippian Spergen. The pay interval identified appears to be thicker in size and with similar characteristics to the productive intervals in the Steamboat Hansen 8-10 and Big Sky 4-11 wells.
The well is currently undergoing testing and completion. It is located close to the Steamboat Hansen 8-10 topside facilities and work is underway to expand these facilities to accommodate production from the Taos 1-10 well. The Company expects production to commence by mid June 2013.
Logs from the Taos 1-10 well have also confirmed a number of stacked pay opportunities up-hole from the Mississippian.
Additional Drilling and Development
The Steamboat Hansen 8-10, Big Sky 4-11 and Taos 1-10 wells have all been drilled on an uplifted structure, clearly identified from Nighthawk's 3D seismic, and bounded by fault lines to the north-west and south-east. Analysis of the 3D seismic and the comprehensive well data obtained from 2012 and 2013 drilling indicates the strong possibility that the Arikaree Creek oilfield extends beyond the south-east fault into a much larger structure that is also fault-bound and uplifted. The Company believes the potential in this larger structure is considerable but requires additional drilling to prove up that potential.
With the recent successful drilling adding substantially to production and cash-flow, Nighthawk has expanded its immediate drilling plans to include two appraisal wells on this larger structure. Both of these locations are drill-ready, the current drilling rig will be retained, and it has already moved to the first of these locations, the Silverton 16-10 well.
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