Nighthawk Energy Regulatory News (HAWK)

 NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Drilling and Production Update

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

Drilling - Key Points

·; 2012 drilling program to be expanded to five wells

·; Drilling of Steamboat Hansen 8-10, the fourth well in the program, underway

·; The Pike's Peak Williams 4-30, the second well in the program, did not produce under initial completion techniques and further completion has been deferred whilst the stimulation strategy for this well is undergoing re-evaluation

·; Completion of Knoss 6-21, the third well in the program, to commence shortly

Production - Key points

·; John Craig 6-2 well on permanent production from 7 October 2012, and currently being cautiously managed to produce in a general range of 200 to 250 barrels of oil per day ("bbls/day")

·; Production from John Craig 6-2 has increased average current gross production levels to approximately 270 bbls/day

·; September gross production, including a three day contribution from the 6-2, averaged 118 bbls/day

·; Average gross production in Q3 2012 of 76 bbls/day, double the average of the first half year 2012

Drilling Program Overview

Following the success of the John Craig 6-2 well and the positive indications from the open hole logs of the Williams 4-30 and Knoss 6-21 wells, the Company has committed to a fifth well in the 2012 drilling program. Funding for this additional well is now available following the completion of the settlement announced earlier this month.

The fifth well, the Whistler 6-22, is located close to, and due south of the Steamboat Hansen 8-10 location, on the northern boundary of Lincoln County and over 35 miles north of the current Jolly Ranch core area. The well will test a similar horst structure to the Steamboat Hansen 8-10 with primary targets of the Cherokee and Marmaton formations.  

With the potential for drilling success in this northerly area, Nighthawk has moved to protect its acreage position by successfully bidding to retain over 6,000 gross acres in the immediate vicinity of these wells.

Steamboat Hansen 8-10

Drilling of the Steamboat Hansen 8-10, the fourth well in the drilling program, commenced on 14 October. Drilling has progressed on schedule and is currently past 6,500 feet. Planned target depth for the well is 8,500 feet.

Pike's Peak Williams 4-30

The Williams 4-30 well, the second well in the program, is located on Nighthawk's more southerly acreage, close to the existing older Jolly and Craig wells. The well was drilled to its target depth of around 7,900 feet with the open-hole logs showing good oil indications in the Cherokee and Marmaton formations. Initial completion was in the Cherokee formations, with stimulation of the formation utilising mild acidisation under relatively low pressure that has not stimulated hydrocarbon flows from these zones. With good potential in this well, a thorough review of the available data is being carried out to determine the next steps, and further completion and testing has been temporarily deferred and the rig has moved to the Knoss 6-21 location. The rig will return to the 4-30 location at a future date once the revised stimulation plan is determined.

Knoss 6-21

The Knoss 6-21 well, the third well in the drilling program, was successfully drilled to its target depth of around 8,400 feet and the well has been logged and cased. The completion rig is currently on location and the well is being prepared for initial completion and testing.

Production

John Craig 6-2

Flow-tests on the John Craig 6-2 well commenced on 19 September 2012 and the well flowed under natural pressure for three consecutive days. Following the installation of new pumping equipment and storage facilities the well was brought into permanent production on 7 October 2012.

As this is the first significantly successful well at Jolly Ranch, a prudent approach to pumping has been maintained in order to avoid excess water production and risk of formation damage. The well is being cautiously managed to produce in a general range of 200 and 250 bbls/day of oil, comfortably within the overall pumping capacity of the well, and will be subject to adjustment during this start up phase.

Gross Oil Production 2012

(Prior to 23 January 2012 Nighthawk had 50% Working Interest/40% Net Revenue Interest)

(From 23 January 2012 to 8 October 2012 Nighthawk had 75% Working Interest/60% Net Revenue Interest*)

(From 8 October 2012 Nighthawk has 100% Working Interest/80% Net Revenue Interest)

(* Nighthawk has at all times held a 100% Working Interest/80% Net Revenue Interest in the John Craig 6-2)

Gross average production of 76 bbls/day in Q3 2012 was boosted by a three day contribution from initial production from the John Craig 6-2 well. There was also continued gradual improvement in production from the older wells, with September gross production from these wells reaching 73 bbls/day, a 20% increase on August levels. Including the 6-2 contribution gross average production in September was 118 bbls/day, the highest monthly average since mid-2010.

October gross production will see another substantial step-up, with total gross production over the past 11 days averaging approximately 270 bbls/day of oil.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"As we move through the new drilling program we are learning more about the hydrocarbon bearing formations and how to effectively complete each hydrocarbon bearing zone. It is already clear that each well will require a slightly different approach, with the 6-2 responding instantly to acidisation, whilst the 4-30 has been reluctant so far to flow the identified oil accumulations in the Cherokee. What has been consistent however, is the significant prospectivity in all the well logs, and with the increased financial resources now available to us, we have the confidence to extend the 2012 drilling program to five wells.

"On production, the successful John Craig 6-2 well has resulted in a significant step-up in Nighthawk's oil production. With current attractive oil prices and an 80% net revenue interest, revenues are now close to covering operating costs and overheads, with a reasonable expectation of more to come from any further drilling success. As a result we are able to direct our cash reserves towards the additional drilling and the planning of new activity in 2013."

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 32 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.

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