Nighthawk says production looms
Article Date: Oct 27 2008US-focused oil prospector Nighthawk Energy says it expects ‘a major transition’ from development to production in 12 months.
The AIM-quoted company increased its losses nearly 70 per cent to £2.5 million in the year to June, but ended the financial year with £21.2 million cash after raising £14 million at 46p in January. Managing director David Bramhill, a seasoned and entrepreneurial small resource company player, enthuses about Bristol-based Nighthawk’s Jolly Ranch project in Colorado, where seven wells have been drilled and one has flowed 446 barrels of oil and one million cubic feet of gas on a 24-hour test.
During the year, Nighthawk raised its stake in its original Cisco Springs natural gas project in Utah to 50 per cent. The company says an independent reserve update attributes it a net potential 121 billion cubic feet of gas and 3.8 million barrels there.
Former star-performing Nighthawk shares have plunged from 114.75p last May to 23.5p and brokers talk about Contact For Difference selling. If the company’s various projects come right, they could now fare better than some others in the sector.
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