US-focused shale oil company Nighthawk posted a 65 per cent increase in revenues for the last half of 2012 on the back of record production.

Group revenues came to $1.6m, up from $0.9m in the previous half, as gross production grew 165% to 135 barrels of oil per day.

During the period, the company made significant new Mississippian oil discovery by the Steamboat Hansen 8-10 well on the Smoky Hill project in the Denver-Julesburg Basin, Colorado.

A report of the discovery identified gross stock tank barrels of oil initially-in-place of up to 4.89m barrels and gross recoverable reserves of up to 755,000 barrels.

Nighthawk also successfully drilled four new wells with two completed for production from the Cherokee shale formation.

The group narrowed its losses to $2.4m from $35.9m.

Higher revenues were offset by $1.0m in cost of sales, $0.6m in impairment charges and $1.9m in administrative expenses. Impairment charges were related to the decision to plug and abandon and old well on the Jolly Ranch project in Colorado.

At the end of the period, group held cash balances of $2.3m, compared to $9.2m in the prior half.

Executive Chairman Stephen Gutteridge said the increase in production and new oil discoveries have put the company in a stellar position to facilitate future growth.

"In summary, 2012 was a year of turnaround and transformation for Nighthawk, as the company now controls and operates a significant development project with solid production and major potential," he said.

RD

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