Nighthawk Energy - 41.5p
Nighthawk Energy has released a steady flow of positive news in recent months. There was a placing at 20p in February and on the back of progress since then a significant fundraising has now been conditionally completed at 35p per share.
This will raise £22.4 million before expenses and the proceeds will be used to undertake a 12 month development programme. The share price could well be pushed higher as awareness of Nighthawk’s prospects is raised.
The company focuses on the development of, and production from, hydrocarbon projects and Nighthawk currently has an equity stake in four projects across the US mid-continent.
These are operated by Running Foxes Petroleum Inc., who also own the remaining interest in each project.
A 50per cent interest is held in the Jolly Ranch Group Project, which is made up of Jolly Ranch, Middle Mist and Mustang Creek, located in Colorado. This covers over 370,000 gross acres. In July Nighthawk announced details of an independent evaluation of the hydrocarbons in place at the Jolly and Craig Ranch fields.
The Revere Project is on the Kansas/Missouri border and within the Cherokee Basin, a prolific shallow oil and gas producing area from Pennsylvanian, Mississippian, and Ordovician reservoirs from less than 4,000 feet. The Revere project covers an area of approximately 40,000 acres and is made up of the Devon Oilfield, which Nighthawk has an interest of 80per cent in, plus Buchanan and Xenia projects, both of which Nighthawk owns half of.
Nighthawk has a 50per cent interest in the Cisco Springs project located in Grand County, Utah, which covers approximately 24,000 acres. There is an ongoing drilling and development programme of over 60 wells. The majority of the new commercial wells are gas producers, but significant oil zones have been discovered.
The Cliffs Shale Gas project covers 15,591 acres in Clark, Cumberland, Jasper and Crawford Counties, Illinois. The project is located within the Illinois Basin, which is a significant producer of hydrocarbons. Nighthawk owns 80per cent.
Whilst there are no guarantees of success the company does appear to have a lot going for it at the moment. Nighthawk's size and activities also encourage bid speculation and an offer for the company is a realistic possibility. This is not necessarily one for "widows and orphans" as the saying goes, but for those looking for some excitement the shares must rank as a buy at 41.5p.
WARNING: Opinions expressed are the writers’ judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek professional advice as to the suitability of the investments.