London-based upstream Nighthawk Energy will ramp up its development of shale plays at its Colorado assets.
In a production update report issued on August 21, the company said it “clearly identified” an unspecified amount of additional reserves across its Arikaree Creek structure and is now implementing plans to develop and produce the reserves.
Arikaree Creek is located at Nighthawk’s Smoky Hill site in Lincoln County, Colorado.
Nighthawk will initially drill a short horizontal well, the Big Sky 6-11 well, with a horizontal leg of up to 1,200 feet. The well will be hydraulically fractured and tested.
The company expects drilling to start in the fourth quarter of 2014.
Nighthawk asked the independent consultants preparing its new reserve report to evaluate potential reserves in the Upper Mississippian zone of Arikaree Creek.
The company will also be expanding its drilling operation at the southern lobe of Arikaree Creek within the next few weeks.
The Arikakee reserve was discovered in 2012 and has produced 700,000 barrels of oil. The site has nine wells in production and a tenth well, the Blackcomb 12-14, set to begin production this month.
Nighthawk also said that exploration wells at its Snow King asset showed “substantial additional production” potential. The company did not provide an estimate of potential reserves or production.
Nighthawk will undertake a 3D seismic survey to identify pay zones and expects a multi-well development program to start in the fourth quarter of 2014.