Nighthawk declares development plans and an independent reserve report for its 100% controlled and operated Smoky Hill project in the Denver-Julesburg Basin, Colorado.

The Steamboat Hansen 8-10 well, drilled by Nighthawk in October 2012 discovered a Mississippian age oil reservoir at a depth of just over 8,000 feet. This was the first well drilled in this area of Colorado for over 25 years and is some 50 miles from the nearest Mississippian discovery. The discovery opens up significant new oil potential in the region. The well was successfully completed and brought into production in late November 2012.

In the period to 28 February 2013, the well has produced over 22,000 bbls of oil (average 239 bbls/day), with almost no water, minimal downtime and an increasing daily production rate, generating a gross sales value in excess of US$1.75 million, in which Nighthawk has an 80% net revenue interest. The payback period on the well's drilling and equipment cost was under three months.

Tags: Nighthawk Energy plc