Nighthawk Energy PLC has farmed out 4,572 acres of its 100% owned Jolly Ranch project in Lincoln County, Colo., in the Denver basin to an undisclosed Denver farmee.
The farmout calls for the farmee to earn a 50% working interest by drilling at least three vertical wells to the unconventional Pennsylvanian Cherokee and Marmaton horizons near Limon, about 15 miles south of Nighthawk’s Arikaree Creek oil field.
Drilling is to start by Apr. 30, 2014, and the farmee will carry Nighthawk’s 50% working interest through to the tanks. The farmee has two wells that produce from the same two horizons on adjacent acreage.
The well locations will be mutually agreed and will benefit from the farmee’s recent 30 sq mile 3D seismic survey covering the farmout acreage and adjacent farmee licenses. Nighthawk and the farmee will exchange 3D seismic information.