Nighthawk accelerates oil production
US oil development and production company Nighthawk Energy has issued an upbeat production update, following increased production in newly drilled wells.
The group also announced that it is currently in the process of capturing more reserves from existing wells by reconfiguring them. The firm has reportedly identified 17 new drilling locations within the Snow King Discovery area.
Despite the recent oil price slump, the company reported that its operating margins remain as high as 60% to 70%. As a result, the board said it was confident that a reasonable rate of return on its drilling capital will be earned, even if oil prices remain as low as $50 per barrel.
Over the past five months, Nighthawk's shares have fallen by around 50% following a series of disappointing drilling and production updates.
However, as of 12:46 on Monday, the group's share price rose 1.53% to 7.82p per share
- Published on:
- December 8, 2014
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