Nighthawk Energy signs farm-out deal fo Jolly Ranch project

29th Oct 2013 10:56

Nighthawk, a US-focused oil development and production company, has signed a farm-out agreement with an undisclosed private company in relation to its Jolly Ranch project in the Denver-Julesburg Basin, Colorado.Drilling on the farm-out area, which covers 4,572 acres, will begin by April 30th next year. The unnamed firm will earn a 50% working interest (40% net revenue interest) in the area by drilling (as operator) three vertical wells and covering all costs for Nighthawk's 50% working interest through to the tanks. The two companies will exchange 3D seismic information and will agree on well locations. Stephen Gutteridge, Chairman of Nighthawk, said: "This is an attractive arrangement for Nighthawk. It is a step forward in the commercial exploitation of the extensive unconventional Pennsylvanian opportunities across our acreage, with a partner already familiar with the geology and operational environment. "This allows us to focus our own financial and operational resources on additional Pennsylvanian and Mississippian targets, opening up a larger proportion of our acreage to potential development." NR