Nighthawk Energy production slides year-on-year

9th Sep 2016 13:20

(ShareCast News) - US-focused oil development and production company Nighthawk Energy posted an update to current production levels, operations and existing litigation matters on Friday.The AIM-traded firm saw production decline significantly year-on-year between January and July, by between 15,000 and 20,000 barrels each month on a gross production basis."The Arikaree Creek Water Pilot Project was finally approved in early June 2016," Nighthawk's board reported."The Company has commenced working on the pilot with the final engineering design phase now completed and the equipment procurement phase beginning."Construction and installation of the water gathering lines and the water injection lines should commence in the second half of September."Nighthawk said the water injection and the polymer facilities are currently being manufactured and are anticipated to be delivered, installed, tested, and become operational in late October.The company said it has been negotiating with Cascade (Denham) in regards to the last two commitment wells located within the Monarch Joint Development Area."Nighthawk believes the parties may soon finalize negotiations around a proposed settlement."Once this is reached, Nighthawk will announce the results in a future news release," the board said.The company also reiterated that the ongoing litigation between Running Foxes Petroleum, as plaintiff, and Nighthawk, is the final stages of being settled."There is currently only one remaining outstanding claim and the company believes that the allegations contained in the remaining complaint are baseless and groundless actions, and will vigorously defend against the remaining complaint."Based on participation in the pre hearing conference and related court filings, the company has recently been approached about the two parties trying to negotiate a settlement prior to the scheduled court date of September 20."Additionally, Nighthawk Production has recently filed a formal complaint against Running Foxes Petroleum and American Patriot Oil and Gas Limited, an Australian company listed on the ASX, for a seismic disclosure breach in connection with a joint venture the two companies have announced involving acreage near us.