M&A

3 November, 2009

UPDATE 1-Nighthawk Energy says Xenia pipeline in US operational

* Expects five more wells to be brought on stream shortly * Buys Bourbon County pipeline for $0.5 mln (Adds details)

Nov 3 (Reuters) - U.S.-focused Nighthawk Energy Plc (NGTE.L) said on Tuesday its Xenia gas pipeline, in which the company holds a 50 percent stake, was fully operational and flowing at more than 650,000 cubic feet of gas per day.

The energy company said it expected five further wells to be brought on stream shortly with an anticipated rise in flow rates. A further 22 wells have been permitted for future drilling, it said.

Xenia stands within the Revere waterflood project in the United States. Revere was formed by the consolidation of the Devon oilfield, Buchanan and Worden and Xenia projects.

The company also said it bought a 50 percent interest in the Bourbon County pipeline for $500,000 from Admiral Bay Resources, a gas production company focused on development of projects in the Cherokee Basin in southeastern Kansas.

"This acquisition allows the company to market its share of gas production at Revere, including Xenia, with reduced transportation costs," Nighthawk said in a statement.

The company's shares closed at 39 pence on Monday on the London Stock Exchange. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Vinu Pilakkott)

Source: http://www.reuters.com