Nighthawk gets the gas flowing

Oil and gas company Nighthawk Energy (HAWK) has announced its Xenia gas pipeline in the US is now fully operational and flowing at more than 650,000 cubic feet of gas per day.
 
The AIM-listed company said an initial eight wells have been brought into production with a further five currently in the process of being brought on stream, in a move that will continue to ramp up flow rates. A further 22 wells have also been permitted for future drilling.
 
US-focused Nighthawk, which owns a 50% stake in the 26 kilometre pipeline, said gas is already flowing into the Bourbon County pipeline and being sold into the Southern Star Interstate transport line.
 
The company recently acquired a 50% interest in the 39 kilometre Bourbon County pipeline from Admiral Bay Resources, a gas production company focused on projects in southeastern Kansas, for $500,000.
 
"This acquisition allows the company to market its share of gas production at Revere, including Xenia, with reduced transportation costs," a company statement read.
 
Xenia stands within the Revere waterflood project on the borders of Kansas and Missouri. Revere is the result of a consolidation of the Devon Oilfield, Buchanen, Worden and Xenia.

Check out an alternative view on Nighthawk Energy from the team at iBall TV
 
Investors discussing the announcement on the Interactive Investor Nighthawk Energy discussion board were divided over whether the news should really have a positive effect on the share price.
 
Iggystock expressed surprise at the lack of upward movement following the announcement: "I do not understand why this has not risen 5-10% today, although I appreciate the market in general is very depressed," a sentiment reiterated by fellow investor czubaboy: "Being held back by the general market but should end the week comfortably higher, the market cannot ignore the fantastic news HAWK has delivered."
 
However, others were less inspired by the news, deeming it as a ploy to boost the share price. Pepper99 blasted:  "I am disappointed, it just feels like this has come out to keep shareholders at bay. There is no significant revenue on the gas so another disappointment".
 
svenra brushed off calls for a 10% share price rise: "I read the RNS this morning and was trying to work out what, if anything, we didn't know about already! The share price is not going to rocket on information and assumptions that we already know about. Lots of fluff again I'm afraid hence the share price has not rocketed."
 
The company's share rose just shy of 2% to 39.75p.