Chairman, Stephen Gutteridge, said : "We intend to continue the rapid pace of development at Arikaree
Creek and the early availability of a drilling rig is welcome news.
The Company has made a filing seeking approval of its planned Arikaree Water Flood Project with the Colorado Oil and Gas Conservation Commission (the "COGCC"), the state oil and gas regulatory body.
The updated estimates associated with the Arikaree Creek Water Flood Project are extremely significant.
Although the analysis of the data is still ongoing we have already been encouraged by the certain features we have identified similar to those in our Arikaree Creek and Snow King fields.
We made new oil discoveries, in the Company's Snow King field and successfully brought production online from the Pennsylvanian Marmaton zone in both the Arikaree Creek and Salen areas;
Joint Venture One, named the Monarch Joint Venture, will be operated by Nighthawk and covers approximately 23,619 net mineral acres southwest from the Company's Arikaree
Creek field and Snow King project.
The Company's expanded inventory of multi-zone, repeatable and scalable opportunities includes more than 81 potential future drilling locations and 16 uphole recompletions across Mississippian and Pennsylvanian age formations in the Arikaree
Creek field as well as the Snow King and Salen areas with the potential to yield significant NPV growth.
The new behind pipe programme we launched last month has far exceeded our expectations and may open up the possibility of new productive zones in many of our completed wells, especially those in our Arikaree
Creek field as well as many of our John Craig locations.
The Blackcomb 12-14 and the Blackcomb 5-14 wells, completed in Mississippian age formations, at Arikaree
Creek commenced production in September 2014 and had average 30 day gross production rates of 145 and 276 barrels per day respectively.
The Company has drilling and development plans in place for the balance of 2014 and early 2015 which includes further development drilling at Arikaree
Creek and Snow King, the Company's first horizontal well, and further exploration of structural plays.
With the drilling of new well locations at Arikaree
Creek and Snow King, new structural exploration targets and the Company's first horizontal well all planned, I am confident that challenge will be met.
Blackcomb 5-14 well at Arikaree
Creek successfully tested good commercial oil flow rates and will be brought into production