Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces it will be making a presentation at the Enercom Oil and Gas Conference in Denver on August 17, 2015 and will provide the following updates
Updates
· Nighthawk has entered into a new 6-month contract with its oil purchaser which will narrow the discount to WTI of its netback pricing to $7.00 per barrel, a $1.60 per barrel improvement on current netback pricing. This new agreement will start September 1, 2015.
· Five well drilling campaign is scheduled to begin in September. All wells will be targeting the Spergen formation. Estimated drilling costs are $1.4 million per well, down approximately 30% below 2014 levels. The first well will be a development well in Arikaree Creek, and the other four wells will be in the Monarch JDA.
· Company is disclosing its May 1, 2015 internal estimate of unrisked 3P reserves of 17.2 MMBOE net to the Company. This total includes 4.0 MMBOE net to the Company in the Proved Reserve category, prepared consistent with SPE standards and methodologies used by Ryder Scott, the Company’s external petroleum engineer.
Reserves and Resources
Nighthawk’s internal estimates of its petroleum reserves are made to SPE standards. This is the same approach used by the Company when it last reported internal estimates in December 2014. As the Company has reported over the last year, Nighthawk continues to add new potential drilling locations and the related reserves are included in these internal estimates. Nighthawk now estimates total net 3P reserves of 17.2 MMBOE, comprising 4.0 MMBOE net Proved Reserves, 2.7 MMBOE net Probable Reserves and 10.5 MMBOE net Possible Reserves.
Company Presentation
Nighthawk’s Chairman and Chief Operating Officer will be meeting with institutional investors, analysts and brokers in Denver during the week commencing August 17th, 2014.
An updated Company Presentation will be made available on the Company’s website today at http://www.nighthawkenergy.com/investors/presentations/.
Rick McCullough, Chairman of Nighthawk, commented:
”Nighthawk continues to drive down its costs, grow its drilling inventory and further derisk its programs. We see potential valuation catalysts ahead of us later this year and into 2016 as outlined in the presentation. To put our reserve and resource numbers in perspective, in our first three years of operations (late 2012 through today), our total cumulative oil production is in the 1.5 million barrel range.
”We believe that the Company’s shares are undervalued. We are committed to closing that valuation gap through our accomplishments and effective communications of our plans and results.”
Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.
Enquiries:
Nighthawk Energy plc
Rick McCullough, Chairman
+1 303 407 9600
Richard Swindells, Chief Financial Officer
+44 (0) 20 3582 1350
Westhouse Securities Limited
+44 (0) 20 7601 6100
Alastair Stratton
Robert Finlay
Canaccord Genuity
+44 (0) 20 7523 8000
Manuel Santiago
Henry Fitzgerald-O’Connor
FTI Consulting
+44 (0) 20 3727 1000
Ben Brewerton
ben.brewerton@fticonsulting.com
Ed Westropp
edward.westropp@fticonsulting.com
