Jolly Ranch JV Kicks Off Drilling Program

Nighthawk announced the commencement of a three well vertical drilling program at the Jolly Ranch project, located in Lincoln County, Colorado. The Company holds a 50% interest in the project and the operator, Running Foxes Petroleum, the remaining 50% interest.

Interpretation of four recently acquired 3D seismic surveys covering a total of over 25,000 acres at Jolly Ranch have established potential sweet spots in the Cherokee and Atoka shale packages in addition to several conventional targets.

Two of the three wells being drilled are development wells, the Craig 6-4 and the Craig 16-32, located in the Bolero Field, part of the Jolly Ranch core development area. The third well, John Craig 11-2 is located near Limon, which is to the north of the core project location and is an area previously undrilled by Nighthawk and Running Foxes.

Drilling has commenced on the Craig 16-32 which is a direct offset from three wells previously drilled by Nighthawk and Running Foxes which are producing oil from Atoka and Cherokee shales, limestones and dolomites.

The Craig 6-4 is twinned with the previously drilled Craig 6-4 Salt Water Disposal Well which encountered several excellent oil bearing horizons in the Cherokee and Atoka shales, as well as in the interbedded porous dolomites and limestone at depths of between 6,489 and 7,079 feet.

The John Craig 11-2 well is targeting a structural closure defined by the recent 3-D seismic survey over the project area near Limon, the interpretation of which identified between 50 to 100 feet of structural relief in the Paleozoic rocks and significant faulting around the target location.

The Great Plains field, which was recently discovered by another operator, is adjacent to the Limon area and has two high-rate production wells (currently approximately 300 - 600 barrels per day), which have been completed in the Excello shale of the Cherokee formation.