Nighthawk scraps Jolly Ranch sale

US focused oil group Nighthawk has scrapped the $10.9m deal to sell finance group San Severina a 20% working interest in the Jolly Ranch prospect in Colorado.Nighthawk said payment of the initial consideration was due by 15 June 2009 and no payment from San Severina has been received."Since the beginning of April 2009, by which time due diligence was complete and the Agreement was in final form, a number of extensions were requested by San Severina until the Agreement was signed on 31 May 2009," Nighthawk added."Since April the oil price has risen very strongly and this factor, together with San Severina's failure to complete the transaction as agreed, resulted in both Nighthawk and Running Foxes concluding that it was in each of their best interests to terminate the agreement," the statement said.