Nighthawk Energy Enters Jolly Ranch Farmout Option Agreement

LONDON (Dow Jones)--Nighthawk Energy PLC (HAWK.LN), a U.S. focused hydrocarbon and production company, said Wednesday it has entered into a farmout option agreement and acquired additional acreage at the Jolly Ranch project. MAIN FACTS: -Nighthawk holds a 50% working interest with Running Foxes Petroleum Inc., the operator, which holds the remaining 50% interest. -Running Foxes, as operator, has entered into a farmout option agreement with Anadarko E&P Company LP and Anadarko Land Corporation. -Nighthawk will participate in the agreement through the terms of its joint operating agreement with Running Foxes. -The agreement includes Township 9 South, Range 56 West, Section 35 and township 10 South, Range 56 West, Section 3 covering an area of 1,280 acres held by Anadarko. -These sections are located close to the John Craig 7-2 wildcat well, recently drilled by Running Foxes and Nighthawk, on which production casing has been run and completion and test operations are underway. -Running Foxes and Nighthawk have the option, prior to Sept. 1, to commence drilling a first option test well at a location of their choice on the land subject to the agreement. -Following completion or abandonment of the first option test well, Running Foxes will have an option of 120 days from the date of the release of the drilling rig from the first option test well to commence drilling the second option test well. -The strategic land acquisition program throughout the Jolly Ranch project area has been ongoing and the current acreage totals 416,000 gross acres (323,000 acres on a net basis). -Shares closed at 25.5 pence Tuesday. -By Elliott Ball, Dow Jones Newswires; 44-20-7842-9314; elliott.ball@dowjones.com (END) Dow Jones Newswires June 16, 2010 02:25 ET (06:25 GMT)