Nighthawk Confirms Cherokee, Atoka Shales in Area

Nighthawk announced an interim operational update in respect of the three well Q2 vertical drilling program at the Jolly Ranch project.

The Company holds a 50% interest in the 370,000 acre project, located in Lincoln County, Colorado and Running Foxes Petroleum Inc., the operator of the project, holds the remaining 50% interest.

Two of the three wells drilled, the Craig 6-4 and the Craig 16-32, are development wells and are located in the Bolero Field, part of the Jolly Ranch core development area.

Target depth has been reached on both wells and significant hydrocarbons were encountered in several horizons in each well, including the Cherokee and Atoka shales, the primary targets. Casing has been run and the operator is currently undertaking completion processes.

The third well, the John Craig 7-2 is classified as a wildcat, targeting a structural closure defined by the recent 3-D seismic survey over the project area near Limon. This well replaced the originally planned John Craig 11-2 as the new location was considered to be optimal with several conventional zones as well as non conventional zones believed to be present.

Target depth has been reached and significant hydrocarbons were encountered during drilling, including in the Marmaton, Cherokee, Atoka and Morrow formations. Casing has been run and completion operations will commence in the near future.

The John Craig 7-2 well is located approximately two miles west of the Riverbend field discovery made by Wiepking-Fullerton producing from the Cherokee formation, four miles from the Great Plains field, the location of two high volume Cherokee production wells and approximately 14 miles from the Jolly Ranch core development area.

David Bramhill, Managing Director of Nighthawk, commented, "The initial results of the Q2 drilling program are encouraging, particularly in the case of the John Craig 7-2 well which opens up development significantly north of the current Jolly Ranch core area.

"These preliminary results confirm to the extent of the area drilled thus far, the conclusion of the Schlumberger study which indicated that the Cherokee and Atoka shales extend throughout the entire Nighthawk/Running Foxes area."