Nighthawk Energy plc (AIM: HAWK and OTCQX: NHEGY), with its 100% controlled and operated projects in the southeastern Denver-Julesburg Basin, Colorado, has entered into two joint venture (JV) agreements in northern Lincoln County, Colorado.
The JVs are located southwest from the company's Arikaree Creek field and Snow King project toward the town of Limon. Both JVs are with Cascade Petroleum LLC, a private oil and gas exploration and production company formed in 2011 and based in Denver, Colorado.
The first JV, named the Monarch JV, will be operated by Nighthawk and covers approximately 23,619 net mineral acres southwest from the company's Arikaree Creek field and Snow King project. After an initial earn-in commitment, Nighthawk will share the Monarch JV with Cascade on a 50:50 basis between the parties. This agreement gives Nighthawk access to the potential upside in multiple additional Mississippian and Pennsylvanian structures identified by Nighthawk's geoscience team from 2D seismic data. Nighthawk believes that these structures may have similar attributes to its existing Arikaree Creek and Snow King fields.
The second JV, named the El Dorado JV, covers 40,372 net mineral acres and will be operated by Cascade. It is located on both sides of the Monarch JV area and will be shared on a 85:15 basis (Cascade and Nighthawk, respectively). Under this JV, Nighthawk has the right, but not an obligation, to participate in a 15% working interest in any well drilled in the area by paying its share of the well costs.