Nighthawk Energy plc Update re Water Flood Pilot Project (9225N)
November 01 2016 - 2:00AM
UK Regulatory
TIDMHAWK
RNS Number : 9225N
Nighthawk Energy plc
01 November 2016
1 November 2016
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Water Flood Pilot Project Update
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), announces an update to the Company's
Arikaree Creek water flood pilot project (the "Pilot Project").
Pilot Project Development Update
As previously disclosed, the Pilot Project was anticipated to
begin operations in late October 2016, however this is now expected
to be pushed back until mid-November 2016.
On 28 October 2016, the Company performed a mechanical integrity
test ("MIT") on the injection wells and were notified that it did
not pass state specifications. Therefore, the Company will carry
out remediation work on the two injection wells to rectify the
pressure drain-offs experienced. The Company expects to be able to
pass the state testing, depending on the required solution, in 7 to
14 days.
This is the last remaining step to complete to bring the project
online. All other construction and testing has been completed and
injection equipment has been installed, ready to commence
operations.
In order to comply with the terms of the Company's arrangement
with its commercial lender, Commonwealth Bank of Australia ("CBA"),
on 31 October 2016 the Company signed an amendment with CBA,
regarding project milestones, included in the 4(th) Amendment to
the credit agreement which required water flood injection to
commence by 31 October 2016 as well as initial well response by
that date. The further amendment extends the water flood injection
date to 15 November 2016 and initial well response to 30 November
2016. The Company anticipates meeting both these amended threshold
dates.
Rick McCullough, Chairman of Nighthawk, commented:
"The MIT testing that was not passed on the two injector wells
only related to the wells holding pressure and is, from a technical
standpoint, relatively easy to fix but does require the time to
re-enter the well. Our operations team immediately began workover
efforts following the test results and we are confident we will
have the Pilot Project up and running within two weeks. This delay
will not have a significant impact on either the revenues or
volumes produced from the project."
Enquiries:
Nighthawk Energy plc
Rick McCullough, Chairman +1 303 407 9600
Kurtis Hooley, Chief
Financial Officer +44 (0) 20 3582 1350
Stockdale Securities
Limited +44 (0) 20 7601 6100
Richard Johnson
David Coaten
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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