16 Dec 2016 07:00
16 December 2016
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Monarch JDA Settlement Agreement
Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces the execution of a settlement agreement regarding the Monarch Joint Development Agreement ("JDA").
The Company has today entered into the settlement agreement ("Settlement") with Cascade Petroleum LLC ("Cascade"), the terms of which were set out in the Company's announcement of interim results on 30 September 2016 and set out further below. The US$500,000 cash payment to Cascade was made concurrently with the execution of the agreement. As a result of the Settlement, the required 2016 drilling commitment of the Company in the JDA is relieved. No further drilling commitments exist under the JDA.
The Company does not believe the above Settlement will have a material impact on the Company's financial results going forward.
Enquiries:
Nighthawk Energy plc | |
Rick McCullough, Chairman | +1 303 407 9600 |
Kurtis Hooley, Chief Financial Officer | +44 (0) 20 3582 1350 |
Stockdale Securities Limited | +44 (0) 20 7601 6100 |
Richard Johnson | |
David Coaten | |
The principal terms of the Settlement comprise
o A payment to Cascade of US$500,000;
o Nighthawk to complete an up-hole zone in the Monarch 10-15 well, at the Company's expense (estimated to be approximately US$75,000);
o Nighthawk to assign Cascade an increased revenue share from the Monarch 10-15 well, and to assign a 2% net overriding revenue interest in the land section surrounding the Monarch 10-15 wellbore; and
o In exchange for the above consideration, the Company to receive from Cascade an assignment of their working interest in all remaining acreage in the JDA.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.