In the Smoky Hill project area, the Steamboat Hansen 8-10 well discovered the Arikaree Creek oilfield in October 2012. This discovery is in the Mississippian age Spergen formation, the first discovery of this type in this area of Colorado. The well has been a significant producer since coming on-stream on 28 November 2012. Total production from the Arikaree Creek oilfield exceeded 480,000 bbls of oil at 28 March 2014.
A petrologic evaluation recently commissioned by Nighthawk has confirmed the existence of enhanced secondary porosity through hydrothermal alteration of the original reservoir. Nighthawk believes that this enhanced reservoir may be a contributing factor for the strong production performance of this well and that the Big Sky and Taos wells are likely to have similarly enhanced reservoir characteristics. The Company will commission an updated Competent Person Report on the Arikaree Creek oilfield at the earliest opportunity.
The Big Sky 4-11 well encountered 32 feet of gross pay interval at 8,030 feet in the target formation of the Mississippian Spergen. The Big Sky well was drilled on the same structure as the Steamboat Hansen 8-10 discovery well, drilled in October 2012, and has confirmed a significant north-east extension of Nighthawk’s Arikaree Creek oilfield. The pay interval encountered by the Big Sky 4-11 well is similar in size and characteristics to the productive interval in the Steamboat Hansen 8-10 well. Logs from the Big Sky 4-11 well have also confirmed a number of stacked pay opportunities up-hole from the Mississippian.
The Taos 1-10 well spudded on 17 May 2013 is located on the Arikaree Creek structure midway between the Big Sky 4-11 and Steamboat Hansen 8-10 wells. Taos 1-10 targeted the same formation as the Big Sky 4-11; the Mississippian Spergen formation. The Taos 1-10 well commenced production on June 14, 2013 with initial production rates of 400-500 bopd.