Pre IPO price 4p
Opening price on debut 25p
Floatation price 46p to raise 14million to extend Jolly Ranch
Current fair value estimate 114p
Market cap 70.59 million.
Value of Cisco Springs investments 98 million.
Value of Vogel investments 75 million.
Desparado trucking now Nightfox 250,000 for a 50% stake with partner Running Foxes.
Centurion Project Kansas, 150,000 for a 50% stake.
Jolly Ranch Colorado, 40,000 acres cost 356,000 for a 50% stake.
Cash in bank 7.75 million.

As this EPIC opens on AIM today anything could happen. On the one hand you have traders trying to cash in a sixfold profit. You will also have a clambering of traders after shares because, firstly they could only get 75% of their allocation because of demand. Secondly at 25p this company is still way under valued.

Latest RNS. The shale is looking mighty impressive.


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The directors of Nighthawk Energy plc (Nighthawk or the Company) (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce an operational update in respect of the Jolly Ranch Group project, located in Elbert, Lincoln and Washington Counties, Colorado. Nighthawk holds a 50% interest in the project and the operator, Running Foxes Petroleum Inc. (Running Foxes), holds the remaining interest.
Highlights
Jolly 10-5 well encounters hydrocarbons in multiple formations and is cased for production
Ten commercial wells drilled at Jolly Ranch 100% success rate
Craig 15-32 well on three week production test from the Tebo shale bed of the Cherokee formation presently producing 110 to 120 barrels of oil per day
Four well drilling programme to test the prolific Codell and J Sand formations commencing
The Jolly Ranch Group project is a major hydrocarbon production and development venture which includes Jolly Ranch, currently the core area, Middle Mist and Mustang Creek, to the north and west of Jolly Ranch respectively. The current project area comprises 370,578 gross acres (281,069 acres on a net basis).
Drilling results to date have established Jolly Ranch as a significant new oil and natural gas field, particularly in the Atoka and Cherokee shales. These shales are laterally extensive and are believed to be continuous over the entire project area. In addition, several oil bearing conventional zones have been penetrated during drilling, including the Marmaton, Morrow, Spergen, St Louis and Codell formations.
Jolly 10-5 well
The Jolly 10-5 well, the tenth of the drilling programme, has reached Target Depth and encountered several hydrocarbon bearing formations, both conventional and unconventional. The well has been cased for production and will be put on production in January 2009.
Craig 15-32 well
The Craig 15-32 well commenced production at the start of December from a four foot Tebo shale, a component of the Cherokee shales, the first test applied to this formation on the project. The oil is 38 API gravity, low paraffin sweet crude and has a -10 degree pour point and no sulphur. The well commenced production at 50 to 60 bbls of oil per day and has increased to 110 to 120 bbls of oil per day with less than 10% water.
As a result of this positive result from the Cherokee formation, two previously drilled wells, the Craig 8-1 and Craig 4-4, have been completed in the Tebo shale, are making oil and are presently being swab tested. The wells will then be completed in the V and Excello shales
also within the Cherokee formation during the last two weeks of December and then placed on full production in January 2009.
The Cherokee formation comprises four shales varying from three to six feet thick for a net thickness of 15 to 22 feet. These shales contain 40% to 80% quartz and carbonates which, based on detailed analysis, are heavily fractured and saturated with hydrocarbons. The Tebo B, Tebo, V and Excello shales all have the same reservoir features. In addition, Omnilabs, a division of Weatherford International, has indicated in detailed reports, that both the Atoka and Cherokee shales in the project area are generating and expelling hydrocarbons and showing characteristics typical of a successful shale play.
Codell and J Sand drilling programme
Black Gold Inc., a local drilling company, is commencing a four well drilling programme to test the shallower Codell and J Sand formations, both prolific producing zones in the region. Three wells, the Jolly 9C-1, Jolly 16C-1 and Jolly 7-1 will test the Codell formation and the Fischer 14-20 will test the J Sand formation in the Middle Mist Project.
These formations are of Cretaceous age and are located at depths of between 3,000 and 4,000 feet. The J Sand is a prolific producer in the central part of the Denver Basin.

They are busy, busy, busy, just a shame about the oil price, this will rocket when oil recovers, if I didn't have any, I'd say : buy !.

rns headline talks about significant find ..... howver, as far as i can see HAWK prob does not even now produce more than say 1000 bpd, or have i missed something

Their target is 5000bopd by mid 2009.

but even that is nothing to get THAT excited about

Agree but even at $40 less production costs etc it is not bad in relation to their present market capitalisation, it all depends on whether there is real potential to ramp up production thereafter.

We all need crude to recover.

"but even that is nothing to get THAT excited about"

5000x360*50= $90 Million a year at just $50 oil. The figure is for Hawk & RF combined but full reinvestment will stay until the company is sold.

If oil returns to $70 USD, as I think it will, that's $126 Million.

Even after costs, that's a hell of a lot of income to spend on proving and finalising the projects for a company sale. Scale up yet more pumps and the figures can get astronomical -but they dont need to, haven't you been listening to tactics at the AGM? Quick-sale is the buzzword.

get real, this is a huge play, you are fools if you think otherwise.

Those who believe rampers are the fools!

thanks halifax ......
i actually hold HAWK as i think it may have latched on to a very solid if not spectacular oilfield where extraction would not seem to be too exacting .... that being so, the odds must be quite strongly in its favour that it will be gobbled up in the next year or two.

i also do not believe that oil will stay long at trhe current depressed levels, but then i did not expect it to fall quite this low in the first place ..... however, my gut feeling remains that the "natural" price for oil is in the $80/100 range, and i would expect to see a return to that in say Q3/4 2009.

wow cynic, that's very upbeat, time to change your handle? ;-)

cheeky boy! ...... i have always told it the way i see it .... however, as so many on here keep getting overexcited about nothing (you included!), my comments are regularly perceived as predicting gloom and doom rather than just attempting to instil some reality.

you may like to consider what i have just posted on FTSE thread

Breakout here, nice rise today...long may it continue !.

15-25 dollar profitable... 'appy days!

Hawk might breakeven this year if the price of oil holds around $50 as long as production can be ramped up from 1000 bopd.

Share price just can't seem to pull away from the lower thirties at the moment.....at a guess if we could get past 40p, this might climb very fast all of a sudden !.

'co-mingling' being discussed a bit on other boards, potentially 16 production zones per well head over 4 producer-zone areas. That made me sit up and take notice. Best gets better

HAWK was always set up, or so i am led to believe, with a view to it being groomed for take-over ...... so far so good for its drillings have almost never drawn blanks ..... however, investor sentiment only perceives a low underlying crude price and HAWK having only pretty small proven reservoirs and flows.

on the other hand, it is cheaper for a predator to take out a company with known reserves etc than to risk drilling new sites with its attendant significant costs.

so the jury is out for HAWK (which i hold), whereas, i would have thought that both TLW and HOIL (i hold both) make much more tempting targets, given the two recent massive finds they have made.

hawk down 10% any news out there as to why. appreciate not necessary any news to make it go up either?

probably just a reflection of continuing weakness in crude and nymex in particular