29 Jun 2018 07:00
29 June 2018
NIGHTHAWK ENERGY PLC ("Nighthawk" or "the Company")
Update on Chapter 11 cases, and Resignation of Nomad and Broker
Nighthawk, the US-focused oil development and production company (AIM: HAWK and OTCQX: NHEGY) today provides an update on the sale process pursuant to section 363 of the US Bankruptcy Code.
On 28 June 2018, the US bankruptcy court conducted a hearing to approve the sale of substantially all of the assets of the Company's US operating subsidiary Nighthawk Production LLC, including all oil and gas wellbores, saltwater disposal wells, injection wells, leases and equipment, to Polaris Production Partners LLC, an affiliate of Morse Energy Capital Partners, for an all-cash purchase price for the acquired assets of US$18.0 million. Closing is expected to occur on or around 12 July 2018.
The net proceeds of the sale are to be applied in reduction of the Company's loan with Commonwealth Bank of Australia and in payment of allowed expenses of administration incurred in the course of the Chapter 11 cases. The sale will yield no residual value for shareholders, whose interests are subordinated by U.S. bankruptcy law to the claims of creditors and expenses of administration.
Following completion of the sale it is the Directors' intention that the Company shall be wound up, and its remaining, non-operating assets liquidated under provisions of the US Bankruptcy Code.
Resignation of Nominated Adviser and Broker
Stockdale Securities Limited has served notice terminating its engagement with the Company as its nominated adviser ("Nomad") and broker, effective immediately.
The Company is aware of its obligations regarding the appointment (and continued appointment) of a Nomad under AIM Rule 1. Should the Company fail to appoint a replacement Nomad within one month of the date of this announcement, trading in the Company's securities on AIM will be cancelled. In light of the proposed winding up, the Company does not expect to appoint a replacement Nomad and therefore it is expected that the Company's securities will be cancelled on AIM one month from today.
The Company's securities remain suspended on AIM pursuant to the announcement dated 1 May 2018.
Enquiries:
Nighthawk Energy plc |
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Rick McCullough, Chairman | +1 303 407 9600 |
Chris Kohler, Interim Chief Financial Officer | +44 (0) 20 3582 1350 |
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This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.