Nighthawk Energy floated on AIM this week with a market capitalisation of just under £40m.
The company holds a 37.5% stake in the Cisco Springs gas project in Utah, USA, where it owns and operates its own drill.
The Oilfield Production Consultant company estimates the group’s interest in the Cisco project to be worth over $190m or approximately £98m.
There are currently 18 production wells at Cisco Springs, primarily supplying natural gas to the Californian market, with approximately 60 wells planned in the next two years.
The company feels that it is a good prospect for investors as it is drilling in an area, which is both known to have energy and is within a stable political climate.
Nighthawk has raised £10m through the listing and has placed 40m shares at a price of 25 pence each.
David Bramhill, managing director, said: “We have received a very positive response from investors despite the recent market turbulence.
“The funds raised will enable us to continue the execution of a major drilling and development programme on the Cisco Springs project in conjunction with Running Foxes Petroleum, the operator of the project.
“The programme has been successful to date and we look forward to reporting further progress to the market.
“We intend to complete the acquisition of a majority interest in the Vogel Bartlesville waterflood project in Kansas shortly and will seek to build the portfolio of interests further within our chosen area of operations.”
The nominated adviser and broker to the company is Hanson Westhouse Limited.
© Crimson Business Ltd. 2007
