Nighthawk Energy Regulatory News (HAWK)

11 June 2014

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Drilling and Production Update

Average gross oil production in May of 2,141 barrels/day 

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on drilling and production at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.

Highlights

· Average gross oil production from all wells of 2,141 barrels/day ("bbls/day") in May 2014

· Record daily gross production from all wells of 2,326 bbls/day in early May 2014

· Nighthawk net monthly revenue exceeds US$5 million for the first time

· Highly encouraging results from John Craig drilling program in Pennsylvanian age formations

Ø John Craig 2-2 well tested excellent commercial oil-flows from Pennsylvanian Morrow formation

Ø John Craig 10-10 well undergoing completion and testing in Pennsylvanian formations

Ø Drilling of John Craig 4-2 well completed with logs indicating good Pennsylvanian potential

· Nighthawk drilling program continuing with Knoss 9-20 exploration well

· Drilling of first farm-out well completed - operator has decided not to complete the well

(Nighthawk has an approximate 80% Net Revenue Interest* in the gross oil production)

Production

Average gross oil production in May 2014 was 2,141 bbls/day. At current oil prices, net monthly revenue to Nighthawk in May 2014 will exceed US$5 million for the first time.

Nine wells are now in production at the Arikaree Creek oilfield. The Big Sky 14-11 well, located on the eastern limit of the field, commenced production in May 2014 following the successful hydraulic fracturing of a small, vertical Mississippian section.

The Snow King 13-33 well, which commenced production in mid-April 2014, continued to perform strongly in May with an average gross production rate of over 400 bbls/day. The Snow King structure offers significant potential for increased production and, subject to permitting, the Company anticipates drilling up to three additional Snow King wells at the earliest opportunity.

Eleven wells are now each contributing materially to total production with four older wells also in production. With this number of producing wells, production will vary on a day to day basis, and the highest daily level of gross production achieved so far is 2,326 bbls/day in early May 2014.

Drilling

Over the past two months, the drilling program has been focused on the John Craig area 25 miles south of Arikaree Creek. The area being developed is largely covered by 3D seismic, with significant, identified structural features, and complex geology across both the Pennsylvanian and Mississippian age formations. The John Craig 1-2 well, drilled last year continues to produce steadily from the Pennsylvanian Marmaton zone.

Three further wells have now been drilled in the area and two completion rigs are on location. Initial results from this drilling program are highly encouraging, particularly in the multiple zone Pennsylvanian age formations. The Company is currently assessing the feasibility of simultaneous production from two or more zones at each of these wells.

The John Craig 2-2 well has tested excellent commercial oil-flows from the Pennsylvanian Morrow formation and work is currently underway to bring the well into production.

The John Craig 10-10 well is currently undergoing completion and testing in a number of Pennsylvanian zones.

Drilling of the John Craig 4-2 well has recently concluded, with encouraging log data suggesting good potential in the Pennsylvanian formations. A completion rig will shortly be moved to commence completion and testing.

Nighthawk's drilling rig has now moved some twenty miles to the south-west to drill the Knoss 9-20 well. This is an exploration well close to the Knoss 6-21 well, drilled in 2012, and which provides valuable correlative information.

Drilling of the initial well in the farm-out deal announced last year has now been completed. The well is located some five miles north of the John Craig area, and was drilled to a total depth of 8,350 feet and logged, providing additional data on the Pennsylvanian formations, although the operator felt there was not sufficient potential to justify the cost of completing the well.

Financing Arrangements

Discussions on re-financing all existing short-term, non-convertible loans are well advanced and a mandate letter has been signed for a new reserve based lending facility. The Board expects to successfully complete this process on or around the end of June 2014.

Upon completion, the Company plans to repay all short-term, non-convertible debt. Current outstanding short-term debt to be repaid totals US$20 million. Within this total Fastighetsaktiebolaget Korpralen ("FK") has increased its facility to US$13.5 million which is currently scheduled for repayments of US$7.5 million on or before 31 July 2014 and US$3 million each on 31 October 2014 and 31 January 2015. The annual interest rate payable on the loan is 15%.

FK is associated with Johan Claesson, a non-executive director of the Company and the Company's largest shareholder.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"Over the past few months we have opened up two new development areas on our acreage in addition to Arikaree Creek. The Snow King well, which was a farm-in by Nighthawk, has exceeded our expectations, and initial indications are that we have another Mississippian reservoir similar to Arikaree Creek. We plan to resume drilling in the Snow King area as soon as additional permits are received.

"In addition to our success in the Mississippian, we have focused recent drilling on the oil-bearing Pennsylvanian formations in the John Craig area. The results from the three recently drilled wells are highly positive across multiple zones, and we anticipate adding additional material production from this area in the next two weeks. The initial farm-out well has provided further data on the Pennsylvanian formations to the north of the John Craig area, and even though the well will not be completed, the additional data will be useful in planning the next steps in developing the Pennsylvanian potential on our acreage."

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

- Ends-

Definitions

*Net revenue interest (NRI) - Nighthawk's share of oil, gas, and associated hydrocarbons produced, saved, and marketed, after satisfaction of all royalties, overriding royalties, or other similar burdens on or measured by production of oil, gas, and associated hydrocarbons

Enquiries: