Nighthawk raises $10.9m through Jolly Ranch sale

US-focused oil group Nighthawk Energy and its partner Running Foxes have agreed to sell to finance group San Severina a 20% working interest in the Jolly Ranch prospect in Colorado.San Severina, a Swiss investment group, will buy 10% each from Nighthawk Production and Running Foxes in the core area of Jolly Ranch, covering approximately 50,000 net acres in Colorado with an option to take a 20% stake in the outlining areas of the prospect.Nighthawk will receive $10.9m initially and a further $29m if all of the options are exercised.Nighthawk and Running Foxes will each retain a 40% interest in the core area of Jolly Ranch and, prior to the exercise of the options, a 50% interest in the remainder of the project acreage. Running Foxes continues as operator."Together with our new partner, we now intend to accelerate the development of Jolly Ranch, which we believe to be a world class project in the making," David Bramhill, managing director of Nighthawk said. San Severino will transfer one-fifth of its acquired 20% working interest in Jolly Ranch to Ascent Resources, the oil and gas firm with which it formed an oil and gas asset management joint venture back in October 2008.'This is to be the first of a number of projects that Ascent and San Severina plan to participate in together under the Asset Management Programme and at this time we are studying a number of other opportunities and expect to announce further acquisitions in the near future,' said Ascent's managing director, Jeremy Eng.