Shares in Nighthawk Energy Plc (LON:HAWK) edged up 4.4% to 24p during morning trade today after the US focused oil and gas group reported “encouraging” results from a three well drilling programme carried out at its Jolly Ranch project in Colorado. Sentiment among Nighthawk’s army of private investors was mixed on internet message boards as the company once again resisted giving details about production levels from its flagship project. Nevertheless, Nighthawk insisted that promising findings from the Craig 6-4, Craig 16-32 and John Craig 7-2 wells, substantiated earlier positive analysis by oilfield consultants Schlumberger of the Cherokee and Atoka shales that run throughout the Jolly Ranch area.

Nighthawk holds a 50% interest in the 370,000 acre project, located in Lincoln County, and Running Foxes Petroleum Inc, the operator of the project, holds the remaining 50% interest. Craig 6-4 and the Craig 16-32 wells 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.

Nighthawk said 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 Energy LLC 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, Nighthawk’s managing director, said: “The initial results of the Q2 drilling programme 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…

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