Nighthawk Energy Regulatory News (HAWK)

4 November 2015

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Borrowing Base Redetermination and Production Hedging Update

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces the Company's borrowing base redetermination.

Reserves Based Loan

On November 2, 2015, the Company closed the quarterly borrowing base redetermination with Commonwealth Bank of Australia ("CBA") based on reserves at 30 September 2015. The redetermined borrowing base reflects the significant price drop seen by the market in the July-August 2015 time period. Consistent with many other operators' reserve based loans in a declining oil price environment, the Company's borrowing base available to be drawn was reduced from $32.0 million to $27.0 million. The existing loan agreement was amended which provides additional flexibility in the current market environment. The new amendments establish a minimum liquidity of $5 million and a waiver of the previous $5 million holdback by the bank.

In accordance with the credit agreement, to conform with the new borrowing base, the Company will make three payments of $1,000,000, due in early December, January and February. Based upon the results of the Company's' November 30, 2015 reserve review, the January and February payments may be avoided if additional reserve value is added. Additional reserve value may be realized from the current drilling program, upward adjustments to existing well recoverability and/or increases in the forward strip price of crude oil. As of October 31, the Company had approximately $11 million, on hand. Based on current projections, the Company has adequate cash on hand to meet the above debt payment obligations, maintain its necessary liquidity as well as meet projected expenditures, including on the remaining wells of its current drilling programme. The Company's discussions with CBA continue regarding the Company's existing 2P reserves, drilling results and plans for increasing the borrowing base. Further announcements will be made at the appropriate time.

Commodity Hedges are Cash Flow Positive

As of November 1, 2015, the Company had 54,000 barrels of production hedged at a weighted average price of $70.13 per barrel for the remainder of 2015. As these hedges settle in November and December, Nighthawk will realize approximately $1,350,000 in cash flows above the current market prices. Gross average price realized for September production volumes was approximately $53.00 versus the average WTI price of $45.47 per barrel. For 2016, currently 167,000 bbls are hedged at a weighted average price of $63.63. Having hedges in place allows the Company to manage the commodity risk around oil prices. Additional volumes for 2016 and 2017 are expected to be hedged as prices recover.

Potential Future Reserve Adds from Arikaree Creek

Nighthawk recently provided an update on its Arikaree Creek water flood project. The project, while subject to State of Colorado regulatory approval has the potential of substantially adding to the Company's reserves. The range of estimates disclosed is effectively equivalent to adding the reserves associated with 5-10 new Spergen wells in the field. Furthermore, Nighthawk's projections indicate that this can be achieved with a capital expenditure of around just $2 million for a project that can be completed by mid-2016.

As reported, the Company's current reserve estimates are based on an assumed recovery factor of 16%. The Company recently implemented a water flood pilot project to measure the impact of the natural water drive that is occurring in the field from the underground thermal waters combined with our water injection well. Production results in nearby wells imply a substantial potential increase in primary recovery rates due to the water drive. Nighthawk believes these results suggest that the current wells will produce more oil than its independent reservoir firm, Ryder Scott, has assigned to this particular asset regardless of whether the water flood project is implemented. The Company believes that, with continued evidence of increased production associated with this natural water drive feature, it will upwardly adjust its reserves accordingly. In addition, this also suggests that current estimates of ultimate recoveries from primary and the water flood in the 30-40% range from the field are reasonable.

Advisers

In order to save further costs, the Company has decided to go forward with a single broker and accordingly Canaccord Genuity will no longer act as joint broker to the Company. Nighthawk would like to thank Canaccord for its past services to the Company. Westhouse Securities Limited remains as the Company's nominated adviser and broker.

Richard McCullough, Executive Chairman of Nighthawk Energy, said:

"We are actively working our assets in the current commodity market to extract the highest and best returns. Notwithstanding the near-term adjustment to our borrowing base, we have approximately $11 million of cash on the balance sheet and a strong hedging program that is cash flow positive. We have a rigorous capital allocation plan in place to drill projects that we believe meet our long-term investment criteria."

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