Nighthawk, the US focused hydrocarbon development and production company (AIM: HAWK and OTCQX: NHEGY), is pleased to announce the acquisition of a 50% interest in the Hammond project ("Hammond") located in Bourbon County, Kansas. Running Foxes Petroleum Inc. (“Running Foxes”) has acquired the remaining 50% interest and is the operator.
Hammond, covering an area of 4,773 gross acres (4,773 net) and held by production (an indefinite licence term whilst production is maintained), has been consolidated into the Revere project ("Revere") and is strategically located adjacent to the Buchanan and Worden leases in Missouri. The Revere project now covers a total area of approximately 60,000 gross acres.
In addition to the land base described above, significant infrastructure including a combination of gas and oil production wells, oil tank storage batteries and pipelines form part of the acquisition.
42 wells (29 gas / 13 oil) are situated within the Hammond acreage and are classified by the previous operator as production wells, having produced from coal and shale formations. Whilst some gas wells are in production, a programme of re-evaluation and redevelopment of these wells is underway. Running Foxes intends to fracture stimulate the Riverton coals, the AW coals and the Tebo ‘B’ shale, which are the main formations present in the gas wells.
The current oil wells, following recompletion, will be brought online, together with additional production and water injection wells. The reservoir is the Bartlesville sandstone and is continuous within the Revere project which is undergoing waterflooding at several sites.
Within the Hammond acreage there is an existing 12 mile pipeline and gas gathering network. The pipeline is located adjacent to the Buchanan and Worden leases situated in the Missouri section of Revere, allowing westward transportation of gas from that project area into the Bourbon County Pipeline of which Nighthawk holds a 50% interest.
Running Foxes and Nighthawk now control 51 miles of main pipeline and gathering systems in the region, transporting gas from their Kansas and Missouri production to the main interstate line.