NighthawkCompletes 3-D Seismic on Jolly Ranch Project

Nighthawk Energy has completed the 3-D seismic and soil gas geochemical surveys over key regions of the Jolly Ranch project area and have planned nine well drilling program. Nighthawk and its partner Running Foxes Petroleum Inc, the operator, each hold a 50% working interest in the project.

Jolly Ranch is located in Lincoln County, Colorado covering an area of in excess of 40,000 acres within the Denver Basin in eastern Colorado where production is drawn from Mississippian, Pennsylvanian, Permian and Cretaceous reservoirs. Primary drill targets are the Mississippian, Morrow, Marmaton and Cherokee carbonates and secondary objectives are the Atoka and Cretaceous strata.

Two separate 3-D seismic surveys have been completed over sections covering approximately 12 and 9 square miles respectively.

The 12 square mile survey was located over the Colorado State 1-36 well which recovered 20 feet of free oil on a DST (Drill Stem Test) in the Marmaton formation from 6,818 to 6,838 feet by the operator in the 1980s. Following processing of the seismic data, a structural high in the Marmaton and two other high profile targets have been identified.

The second 9 square mile survey was located over the Bolero oilfield that was abandoned in the 1990s due to low oil prices at that time. Following processing of the seismic data a structural high adjacent to two previous production wells has been identified.

In addition, a detailed soil gas and iodine geochemical survey over the project acreage has been completed. Numerous anomalies have been identified which correlate with the targets identified by the 3-D seismic surveys.

Two well locations, targeting multiple pay horizons are being staked within each seismic survey area and drilling of the Jolly Ranch 10-1, 15-1, Craig Farms 16-33 and 7-1 will commence at the earliest opportunity following receipt of permits from the State of Colorado. In addition, a further five new well locations are being added to the drill program. The permitting process is expected to take approximately 45 days.

David Bramhill, Managing Director of Nighthawk commented "The results of the 3-D seismic surveys have more than met our high expectations and we look forward to the next stage of development in respect of this potentially high impact project."