23 Jun 2010 07:00
Nighthawk Energy plc
("Nighthawk" or the "Company")
Jolly Ranch Project Marketing Update
Further to the announcement on 7 June 2010, Nighthawk, the US focused hydrocarbon development and production company (Tickers: AIM: HAWK and OTCQX: NHEGY), is pleased to provide an update on the marketing process being undertaken by Macquarie Tristone (Houston) ("Macquarie") to seek a purchaser for part of the working interest in the Jolly Ranch Project in Colorado.
As part of the marketing process, Macquarie will shortly publish an Overview Memorandum (the "Memorandum"), providing details on the Jolly Ranch Project, together with relevant background, including information on activity on the surrounding acreage. The land position being marketed by Macquarie stands at 406,400 gross acres (approximately 315,550 acres net) against the current total acreage of the project of 416,000 gross acres (approximately 323,000 acres net).
The recently drilled Craig 6-4 (Total Depth 7,315 feet), the Craig 16-32 (TD 7,342 feet) and the John Craig 7-2 (TD 8,400 feet) wells will be included within the Memorandum. The John Craig 7-2 is currently undergoing completion in the Cherokee formation.
The Memorandum will also include analysis of project economics and forward projections, which have been compiled by, and are the responsibility of, Macquarie.
The announcement on 7 June 2010 referred to the fact that the percentage working interest to be divested would be likely to be an equal amount from each of Nighthawk and its partner, Running Foxes Petroleum, and would be determined during the marketing process, which remains the case. Subject to the agreement of a satisfactory level of consideration, Nighthawk and Running Foxes would be prepared to divest a majority interest and, in the case of Running Foxes, operatorship in the project. The project economics calculated by Macquarie, which are referred to above, are based on the assumption of the potential purchaser acquiring a working interest of 75%.
The Memorandum will refer to a date for final offers of 23 July 2010 with the signing of the Purchase and Sale Agreement scheduled for 30 July 2010. These dates should be viewed as non-binding and may be subject to change.
There can be no assurance that the marketing process will result in the completion of a transaction. In the event that agreement is reached, the transaction may be subject to the approval of Nighthawk shareholders under AIM Rule 15.
Further announcements will be made as appropriate.
Enquiries:
| Nighthawk Energy plc David Bramhill, Managing Director Tim Heeley, Commercial Director |
07801 540358 07956 525433 020 7887 1454 |
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| Westhouse Securities Limited Tim Feather Matthew Johnson | 020 7601 6100 tim.feather@westhousesecurities.com matthew.johnson@westhousesecurities.com |
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| Matrix Corporate Capital LLP Louis Castro James Pope | 020 3206 7000 louis.castro@matrixgroup.co.uk james.pope@matrixgroup.co.uk |
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| Bishopsgate Communications Limited Nick Rome | 020 7562 3395 nick@bishopsgatecommunications.com |
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| Financial Dynamics Ben Brewerton Ed Westropp
| 020 7831 3113 ben.brewerton@fd.com edward.westropp@fd.com |