Nighthawk signs two JV agreements with Cascade Petroleum

Oil development and production firm Nighthawk has entered into two joint venture agreements (JV’s) with Cascade Petroleum in northern Lincoln County, Colorado, the US.

The JVs are situated southwest from Nighthawk’s Arikaree Creek field and Snow King project towards the town of Limon.

Nighthawk will operate the first JV, dubbed the Monarch, which covers about 23,619 net mineral acres southwest from the Arikaree Creek field and Snow King project.

The company will share the Monarch JV with Cascade on a 50:50 basis following an initial earn-in commitment.

Nighthawk will have access to the potential upside in several additional Mississippian and Pennsylvanian structures identified by its geoscience team from 2D seismic data.

The second JV, named the El Dorado, covers about 40,372 mineral acres and will be operated by Cascade with a 85% stake.

The second JV allows Nighthawk to participate in a 15% working interest in any well drilled in the area by paying its share of the well costs.

Nighthawk chairman Rick McCullough said: "With the formation of these JVs, we will now be combining over 64,000 acres on and around similar structures to what Nighthawk has developed successfully in the Arikaree Creek and Snow King fields and will be collaborating to create value for both companies.

"For Nighthawk, once 3D seismic has been shot and interpreted, the Monarch JV has the potential to add significantly to our inventory of future drilling locations on structures, albeit at 50% participation levels."