Historically there were 19 wells of 7,500-8,000 feet drilled on a core 50,000 acre area within the Jolly Ranch Project by the previous operator, Running Foxes Petroleum. All 19 wells encountered multiple pay horizons but were completed in a manner that did not establish sufficient oil production. Two of the wells are being utilized as water disposal wells due to their prime location thereby lowering the costs associated with water transportation and disposal.
The 2012 work program initially focused on working over the existing well set within the Jolly Ranch Project area to generate as much production and formation knowledge as possible. In addition, Nighthawk reinterpreted the 70 square mile 3D seismic survey and tied this in with the existing well data.
In Q3 2012 the Company commenced a program to drill five new vertical wells, three of which were drilled in the Jolly Ranch Project area. All wells logged commercially producible horizons in the Pennsylvanian, including the Cherokee and Marmaton formations, further establishing the promising regional resource play and also highlighting the stacked pay potential in the south east Denver Basin. As well as testing the areal extremities of the play, the 2012 program was also designed to test structural and stratigraphic features that may enhance production from less permeable interbeds within the shales.
In Q4 2013 the Company drilled the John Craig 1-2 well, which commenced production in December 2013. Today Nighthawk is producing a handful of wells at the Jolly Ranch Project in the Pennsylvanian, including the John Craig 1-2.