Proactive investors

Oil's Origin

Crude oil -- properly called petroleum -- includes natural gas, a flammable fluid usually found with oil. Petroleum is the remains of organic material that was deposited millions of years ago. One seep, in Michigan's Upper Peninsula, comes from billion-year-old rocks, although most commercial petroleum was generated from rocks that are between 65 million and 213 million years old. (Read More)

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Jolly Ranch Group Projects

Nighthawk holds a 50% interest in the Jolly Ranch Group project (“Jolly Ranch”) comprising the Jolly Ranch, Middle Mist and Mustang Creek areas, covering approximately 370,000 gross acres of Lincoln, Elbert and Washington Counties, Colorado. Running Foxes is the operator of the project and holds the remaining percentage interest.

To date, 10 wells of 7,500-8,000 feet have been drilled on a core 50,000 acre area by Nighthawk and Running Foxes, all of which have encountered multiple pay horizons. Nine of these wells have been completed as production wells from which an aggregate test production of 1,088 barrels a day from seven of those wells was achieved. One well is being utilised as a water disposal well due to its prime location thereby lowering the costs associated with water transportation. Two of these wells remain to be tested. A further two shallower wells of 3,000-4,000 feet to test the Codell formation, another major production zone in the Denver Basin, have been drilled and cased for future production.

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Revere Project

Revere is a major waterflood project covering in excess of 40,000 acres and is the product of the consolidation of the Devon Oilfield, Buchanan and Worden and Xenia projects, all located on and near the State Border of Kansas and Missouri.

Nighthawk holds an 80% interest in the Devon Oilfield and a 50% interest in the Buchanan, Worden and Xenia sections of Revere. Running Foxes, the operator, holds the remaining interests.

The project is located within the Cherokee Basin, a prolific shallow oil and gas producing area from Pennsylvanian, Mississippian and Ordovician reservoirs. The Bartlesville and McClouth formations at less than 800 feet are the primary targets.
The shallow reservoir depths ranging from 350 to 800 feet result in a very low drilling cost per well of approximately US$50,000 to completion. Therefore a large number of wells can be drilled to thoroughly define the geology of the project and efficiently drain the reservoirs.

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Cisco Springs

Nighthawk holds a 50% working interest in the Cisco Springs project located in Grand County, Utah, which covers approximately 24,000 acres. Running Foxes, the operator, holds the remaining interest.

To date, 32 Nighthawk / Running Foxes wells have been drilled resulting in 30 reported commercial natural gas discoveries. The wells have been evaluated for conventional gas on 40 acre spacing and oil on 10 acre spacing. In addition there are some 70 historic wells that were part of the original purchase package that have been successfully re-entered and evaluated by wireline log analyses.

The commissioning in December 2008 of the Broadhead tap and new production facilities provides a reliable means of natural gas transportation with sufficient capacity for future gas sales.

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Cliffs

Nighthawk holds an 80% interest in the Cliffs Shale Gas project, covering 15,591 acres and located in Clark, Cumberland, Jasper and Crawford Counties, Illinois. The Cliffs project is located within the Illinois Basin, which is a significant producer of hydrocarbons that has yielded in excess of four billion barrels of oil from numerous reservoirs at less than 2,900 feet. Production has been derived from conventional reservoirs such as the Devonian and Silurian carbonates and the Rosiclare, Aux Vases, Benoist and St. Genevieve sandstones. The original source of over 90% of this production is the Devonian New Albany Shale at less than 4,000 feet which is in the gas window and is the primary target of the Cliffs project.

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