Nighthawk Energy plc (AIM: HAWK), the US focused hydrocarbon production and development company, announces the start of pilot production and construction of gathering facilities at the Devon Oilfield waterflood project (“Devon project”), located in Bourbon County, Kansas. Nighthawk holds an 80 per cent. interest in the project and the operator, Running Foxes Petroleum Inc. (“Running Foxes”) a 20 per cent. interest.
The Devon project, covering 1,764 acres, is targeting the Upper and Lower Bartlesville channel sandstones and has seen an expanded appraisal drilling programme over the project area since March 2007.
One well has been on pilot primary oil production (without water injection) for some weeks. A further 28 successful appraisal wells have now been perforated, acidised and swabbed and are ready to be placed on primary oil production prior to and during full water injection. Construction of a surface gathering system, tying–in the production and injector wells has commenced and is expected to be completed by the end of July 2008.
As announced on 26 February 2008, four injector wells have already been drilled and cased in a four–spot pattern. A further 20 injector wells are currently being drilled and will be added to the production facilities.
The expanded waterflood injection and design is expected to take between four and twelve months. This will involve observing the effects of waterflooding, fluid migration paths and reservoir production characteristics.
Running Foxes has engaged a waterflood expert with over 20 years’ experience in south eastern Kansas, and additional personnel to manage the Devon and the Buchanan and Worden projects located in the adjoining State, Missouri, where Nighthawk and Running Foxes are currently test drilling and increasing their land position.
Independent consultants Oilfield Production Consultants Limited (“OPC”), will commence evaluation of the Devon, Buchanan and Worden projects immediately following the ongoing re-evaluation of Nighthawk’s 50 per cent. interest in the Cisco Springs natural gas project in Utah.
David Bramhill, Managing Director of Nighthawk stated “The planned development strategy of the Company is on course and Devon is now our second project to be brought to production status. I am confident that further of our development projects will move into production over the next twelve months.”