Running Foxes Exploration Predicts 100 Million Barrels on Jolly Ranch

The expansion of the 2008 development drilling program for Nighthawk's Jolly Ranch project follows of 3D seismic data acquisition that has identified additional drilling targets. In addition, the land base of the project has increased from 84,000 acres to more than of 139,000 acres.

Jolly Ranch is located in Lincoln County, Colorado within the Denver basin where production is drawn from Mississippian, Pennsylvanian, Permian and Cretaceous reservoirs.

As reported on Nov. 12, 2007 a successful 3D seismic program covering 21 square miles was shot over key sections of the Jolly Ranch project area including the Bolero and Craig Ranch oilfields, which were abandoned in the 1990s due to low oil prices.

Also, a detailed soil gas and iodine geochemical survey was completed and numerous anomalies correlating with targets identified by the 3D surveys were identified.

With the ongoing interpretation of the 3-D seismic data and other technical studies, additional drilling targets have been identified. As a result, the drilling program has been re-evaluated and an expanded program for 2008 is now planned.

A refinement of targets has been undertaken and four new high priority drill locations have been selected. These initial wells, termed the Four Kings, namely Elizabeth, Henri, Phillip and Sixtus, will test multiple stacked targets in the Marmaton, Morrow, Atoka, Cherokee and Mississippian. Well permit applications have been submitted to the State of Colorado for approval. The first well to be drilled will be the Elizabeth which is scheduled to spud in the first quarter of 2008.

While it is very early in the evaluation process of Jolly Ranch, Running Foxes estimates that the aggregate potential of the targets is in excess of 100 million barrels of oil in place with significant potential to increase that estimate based on the extent of the current seismic features seen.

The land base of the Jolly Ranch project was initially 40,000 acres. A further 44,000 acres was acquired in November 2007 bringing the project area to 84,000 acres.

Nighthawk and Running Foxes have continued their land acquisition program. These efforts have resulted in the purchase of a further 55,557 acres, bringing the total project area up to 139,577 acres.

"Since the original acquisition of the Jolly Ranch project in August 2007 our expectations of successful future development have increased," said Nighthawk Managing Director David Bramhill. "Independent technical evaluations and studies of historical production wells located on the Bolero and Craig oilfields drilled in the 1980s by BHP and Anshultz have indicated significant oil in place and identified additional by-passed oil zones. Whilst the project is still at an early stage of development and the usual risk factors apply, the results of the 3-D seismic program and the substantial land acquisitions have greatly increased the upside potential of Jolly Ranch."