Nighthawk Energy will purchase more shares in the Jolly Ranch project in the Denver-Julesburg Basin in Colorado from Running Foxes Petroleum. Nighthawk will pay $8.5 million in cash and $4 million in shares for an additional 25% interest in the venture. "This acquisition will propel Nighthawk to a position of majority partner and operator of a potentially major early stage U.S. shale-oil play, with funding available to press ahead with further development," said Stephen Gutteridge, Nighthawk's chairman.
Nighthawk Energy said four 3-D seismic surveys at Colorado's Jolly Ranch project showed "potential sweet spots" in the Cherokee and Atoka shale packages. The company also began vertically drilling three wells at the project in Jolly Ranch.
Nighthawk Energy has released a new estimate on Colorado's Jolly and Craig Ranch fields. After an independent review of 246,000 acres, the company projects 1.462 billion barrels gross of oil from the area.
Nighthawk Energy says it did not receive payment for the $10.9 million sale of its stake in the Jolly Ranch project in Colorado so it has ended the proposed sale to San Severina Holdings. The deal was supposed to have been completed by Monday.
Nighthawk Energy may get as much as $40 million from selling its 50% stake in the Jolly Ranch hydrocarbon production and development project, which is based in Colorado, to Swiss-based San Severina Holdings. Running Foxes Petroleum, which operates Jolly Ranch, holds the remaining 50% stake.