LONDON (ShareCast) - Hydrocarbon production and development company Nighthawk Energy is increasing its involvement in water-flood projects in the USA.

Following a successful summer drilling campaign, Nighthawk and the field operator Running Foxes have been buying up land to expand the Buchanan Group project in Missouri.

Nighthawk has a 50% stake in the Buchanan Group project.

An average of three wells per week are being drilled at the project, with six wells currently in pilot primary production and more due to come online soon.

The group’s 80% owned Devon Oilfield project, located in Kansas, currently has 21 wells on primary production.

Oil from the wells is being sold to a local refinery at a $12 discount to the spot oil price, while gas is being sold to a third-party company at 70% of the Southern Star Index price for south-eastern Kansas.

Nighthawk also announced it has purchased a 50% interest in the Xenia development project, located in Bourbon County, Kansas, from Running Foxes.

The Xenia field, which was abandoned by its previous operators in the 1990’s when oil prices were considerably lower, has eight shut in wells, including tank batteries and pump jacks within its land base.

“US refining demand remains robust and we expect these projects to provide significant and growing long term cash flow for Nighthawk,” said David Bramhill, managing director of Nighthawk.

• News Channel