Member Info for partridge

When oil prices plunged a few years ago oil companies had two options; either to continue drilling and hope increased production offset the lower prices or to ring fence production, preserve cash and cut outgoings (Cascade?). Hawk chose the former. There was no increase in production and debt was increased, $13 million or more in loans and subsequent high interest rates. That was on top of the RBL. Further costs went on high salaries for poor performance. If Hawk had wrapped itself in cotton wool and did nothing it would not be in the precarious state it is in now having saved on drilling dusters and paying staff costs. Now it is a zombie company weighed down by past mistakes and has another debt leg of staff costs. Management decisions should bear most of the blame. Other companies have faired better due to their management decisions.

to the status quo. The management knew the RBL was up for discussion. Rick pontificated about the opportunities at Keystone yet there was no chance of money to drill one well. He even talked up the chance of a Northern waterflood despite no proof the Knutsons had a change of mind ( for their sake I hope they do not). The staff are paid as if they are world beaters although all indications and past results would suggest otherwise. Why upset the gravy train? I would at least have expected Rick to have a plan B easily to hand and not to have to employ an outside organisation to do his job. I would have expected the large shareholder to have made sure Rick had a plan B at the ready. He has sat on the BOD for several years during which the status of the company has nosedived. The whole group have been useless, are useless and will continue to be useless.

No, 29th Sept 2017

comes as no surprise. It would be nice to think the investment bank was independent but it has been appointed by the company so we will have to wait and see. This step should have been made several years ago but the company management has had an unfailing belief in its ability. Results have proved otherwise. The main achievement of the management has been to pay themselves high salaries for poor results. The payroll should be slashed immediately.

Fourthly: There are eight wells recently permitted in the Keystone 3-7 (producing) area. At a cost of about $10million Hawk could drill these wells. That is approximately twice the current market capitalisation. The company cannot afford any more high interest loans from the friendly Concert Party. However Grand Mesa Operating Co. is now drilling just to the south of Keystone 3-7. What could be better than a farm out to a company that has money to drill wells and has recent success in the area? Rick would be well advised to negotiate the sort of deal Cascade had with Hawk with Grand Mesa but is Rick and Hawk up to it? Scarlet, Salen proved negative in the Lansing-Kansas City formation but I wonder if it could do with another look. Grand Mesa appear to having great success in that area.

Firstly: http://www.thisismoney.co.uk/money/investing/article-4933332/Oil-firm-use-facility-fund-development-assets.html Secondly: Cogcc shows a new permit application for a RC (Recompletion) at John Craig 4-2. Thirdly: For those people who look at Cogcc take a look at what Grand Mesa Operating Co is doing in Washington County and Lincoln County just to the north-east of Arikaree Creek where The Searchers 1-25, The Searchers 2-25, Rio Lobo 1-30, Big Jake 1-18 and Easy Come 2 are all down as producing. Hopefully all are successful in Lansing-Kansas City. I would like to think Hawk are rechecking Salen 14-35 for the formation. Could increase interest in Hawks assets in the area.

outstanding debt at 31 December 2016: Reserve Based Loan Libor + 6 per cent � 18,631,025 2012 Convertible Loan Note Zero Coupon � 5,167,500 2013 Convertible Loan Note 9 per cent � 3,135,000 2013 Loan Note 15 per cent � 8,100,446 2015 Convertible Loan Note Zero Coupon � 6,400,000 2016 Loan Note 15 per cent � 2,430,134 Which means a total of � 43,864,105 of outstanding loans. In the past two years the company has accrued about �2million of debt in the form of deferred interest per year, that is �4million. It is this �4million that the Concert Party intends to convert to shares if the timing is beneficial to them. None of the outstanding debt is being paid off so this year another �2million will accrue. At lesser share values these sums will swamp the share price. The company cannot afford to drill. Any money that the company has will be taken by the RBL provider - which is a good thing giving the recent history of performance by the drilling team. But simple economics would mean that the cash would be better spent paying down the high interest loans held by the Concert Party.

There is a saddle between north and south but I was referring to the natural decline in well production with time.

Remember when the magical 425bopd was introduced by Hawk the three Pilot waterflood wells were producing 310bopd. So the increase from waterflood would be 115bopd. When the monthly figures for September 2017 are available on Cogcc it will be interesting to see if any increase is offset by declines in the remainder of the wells. I noticed in H2017 results there was no mention of "the equivalent of 8 Spergen wells". Instead the word incremental was unveiled.

I cannot say the major shareholder deserves any sympathy. He has sat around the table with the BOD and has allowed what has happened to the company over the years. If anything he is part of the problem because with him playing the "nodding donkey" the others can sit smugly and draw their huge salaries for failing. I suspect he and the Concert Party will emerge better than the small shareholder if the company fail. All the negotiations around the RBL have been agreed for the benefit of the Concert Party. He has no experience of oil and gas. I suspect the BOD bought him a Stetson two sizes too big for his head on his appointment to the board so that he could not see or hear anything that went on.

to small shareholders just show the contempt with which they are held by the BOD of Nighthawk. The arrogance of these people who have allowed the share price to fall from 11.5p to 0.33p is unrelenting. With dilution it will only fall further. Outside influences are continually blamed whilst internal failings are ignored or minimalized. This bunch of losers do not have any plan or ideas on how to increase the share price.

The large blip in January 2017 was due to Cascade insisting that " Nighthawk to complete an up-hole zone in the Monarch 10-15 well, at the Company's expense (estimated to be approximately US$75,000)" as part of the JV settlement. January was the first month the completion came on-line at 7604 barrels for the month ( Hawks share only 16%). Hawk did not know that oil was there. Cascade had to point it out to them. Previously it was producing only 100-200 barrels a month. In June Monarch 10-15 produced 1862 barrels of oil.

" Total gas production has been declining, as expected, since mid-January with free gas being redissolved into the oil as pressure increases". This is no longer true gas/oil ratio if anything is increasing. " Since April 4th – Snowbird 9-15 has started to increase daily per barrel oil production from mid-thirties to midfifties". This is not true and has never been true according to Cogcc figures. Mid forties maybe but what is an untruth we are only shareholders. " Anticipated water flood oil production to gradually increase during 2H 2017; has been reviewed by both external and internal reservoir engineers ". What do any of these fools know. Pay people enough money and they will say or write anything. " Northern portion of ArikareeCreek production area potential for water flood development ". I really hope the Knutsons stop this in its tracks. Big Sky 12-11 was chosen as one of the original injection wells. At the moment it is producing 10% of monthly total. Knutsons may have dodged a bullet. Taken extracts from Hawks August 2017 presentation. Don't believe a word these fools write or say.

for Nighthawk may help sort out cash flow problems. Website has a new premium rate telephone line for people wanting to contact the company. With everyone upset and annoyed with the share performance at the moment it should be a money maker.

It is the attention to detail shown by the managers of this company that explains the mess Hawk is in. Can you imagine the errors this bunch of idiots make on a daily basis which are not evidenced in an RNS? ( Chuck there are 700 acres in Arikaree Creek try to get this $1,000,000 well inside it. Oops sorry Rick, missed with Crested Butte. That is OK Chuck because historically that is what we have been doing with all the wells since I became boss). This bunch could not care less about shareholders. A salary of over $360,000 I historically not good enough for Chuck.

I do not think Hawk will have too much trouble achieving 425bopd but I do not think it really matters. If it is not achieved Hawk will do what it has been doing for the past few years and kick it down the road to October and November. It will not be until November that Cogcc publishes the figures for September and we will be able to see if the 425bopd is achieved and if there is a fall in overall monthly production. The target is so small it might get swamped by the natural decline in well production. The 425bopd figure is irrelevant. The management simply wants to be seen as achieving something. It falls a long way short of the 8 Spergen wells. It masks the RBL agreement and the potential 35% share dilution. Everyone is happy!