In the last quarter, Tomahawk drilled another five successful wells, including three primary wells and two offset wells. It also brought four previous wells into production.

Tomahawk reported yesterday that its revenue from oil and gas production at its Okfuskee County, Oklahoma project was up 340% for the June quarter, reaching $634,000.

“This is particularly encouraging given that the company has only been in production for a little over six months and that more than 95% of this revenue came from wells drilled and completed in 2004 where Tomahawk has a net revenue interest (NRI) of 56.25%,” the company said.

“The company has a 71.5% NRI in all wells drilled in 2005 onwards.”

In addition, not all formations in each well have yet been brought into production. This meant there was considerable ‘behind pipe’ potential that remained available to be brought into production in the future, according to Tomahawk.

“In the wells drilled to date only 25 of the 78 formations identified during drilling and log analysis have been treated to be brought into production leaving no fewer than 53 formations ‘behind pipe’,” the company said.

“Many of these can and will be brought into production in the future.”

Tomahawk is now negotiating to participate in a significantly increased area of mutual interest.

Tomahawk’s US partner, Metro Energy has entered into an agreement with a major independent shale specialist which would see the larger company taking a 75% stake in the existing Area of Mutual Interest (AMI) and would extend this area by more than 2.5 times the size of the existing AMI, enlarging it from 92,000 acres to more than 230,000 acres.

In October 2004 Tomahawk negotiated an option to participate equally with Metro in any wells if they farmed in a partner and retained an interest within the existing AMI.

Tomahawk is currently negotiating with Metro on extending this option to include participation in an undivided interest in both the existing and enlarged AMI. This could result in Tomahawk partnering with one of the world’s most successful shale producers in the world on a 75%, Tomahawk 12.5% and Metro 12.5% basis, the company said.

The enlarged acreage position would be in addition to the 4,000 acres over which Tomahawk has options with Metro and the 1,200 already owned outright by the Tomahawk and on which the company’s 17 wells are located.