Nighthawk accelerates oil production

8th Dec 2014 12:16

US oil development and production company Nighthawk Energy has issued an upbeat production update, following increased production in newly drilled wells.The company said that its daily average gross production in October increased to 1,886 barrels of oil a day, while gross production is currently in the 2,500 - 2,600 barrels a day range.Nighthawk's Snowbird 16-15 well was reportedly completed in a Pennsylvanian age formation earlier this month. Since completion, the well has been producing at an average rate of production in excess of 500 barrels per day.The group also announced that it is currently in the process of capturing more reserves from existing wells by reconfiguring them. The firm has reportedly identified 17 new drilling locations within the Snow King Discovery area.Despite the recent oil price slump, the company reported that its operating margins remain as high as 60% to 70%. As a result, the board said it was confident that a reasonable rate of return on its drilling capital will be earned, even if oil prices remain as low as $50 per barrel.Over the past five months, Nighthawk's shares have fallen by around 50% following a series of disappointing drilling and production updates.However, as of 12:46 on Monday, the group's share price rose 1.53% to 7.82p per share