Nighthawk Energy Regulatory News (HAWK)

5 Jun 2007 07:02

Nighthawk Energy plc05 June 2007 NIGHTHAWK ENERGY PLC FORMATION OF NIGHTFOX DRILLING LLC AND ACQUISITION OF THE BUSINESS AND ASSETS OF DESPERADO TRUCKING INC. The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK)are pleased to announce details of the formation of Nightfox Drilling LLC ("Nightfox") and the acquisition of the business and assets of DesperadoTrucking Inc. ("Desperado"). Nightfox Drilling LLC Nighthawk Production LLC ("Nighthawk Production"), a wholly owned subsidiary ofthe Company, and its partner in the Cisco Springs project, Running FoxesPetroleum Inc. ("Running Foxes"), jointly own a significant amount of oilservice equipment, including an Ingersoll-Rand drilling rig and workover rig. The ownership of this equipment has been transferred into a new company,Nightfox, in which Nighthawk Production has a 37.5 per cent. interest andRunning Foxes the balance. The Rocky Mountain region is now one of the most important gas producing areasin the US and production is expected to increase substantially to meet risingdemand. As a result, activity in Utah is increasing, particularly in theParadox, Uinta and Piceance basins. The Cisco Springs project is located on theUncompahgre Uplift, which is the boundary of the three basins. Nighthawk andRunning Foxes intend that the Nightfox-owned equipment, when not being used atthe Cisco Springs project, will be leased at commercial rates to third parties. Desperado Trucking Inc. Nighthawk Production and its partner, Running Foxes, have acquired the businessand assets of Desperado, a Kansas-based oil services company, for a purchaseprice of US$450,000. The assets consist of two water tankers and trucks usedfor the transportation of water and frac fluids and all necessary operationalpermits. Following this transaction Nighthawk Production and Running Foxes eachhold 50 per cent. of the business and assets. The business of Desperado is profitable through its existing contracts withthird parties, which Nighthawk Production and Running Foxes intend to continue.However, the equipment will also be used in the jointly owned Devon oil field,in Bourbon County, Kansas, on which a waterflood is planned to enableproduction. The acquisition is not only expected to significantly reduce thecosts of the necessary water trucking, but also to reduce down time on waterhauling. In addition, further cost savings are expected to be reflected inother development and production projects acquired by Nighthawk and RunningFoxes in the future. David Bramhill, Managing Director of Nighthawk commented "The current highdemand for oil field equipment and services can cause delays in operationalactivities and escalate costs. The acquisition of the Desperado assets combinedwith our existing project infrastructure is another positive step forward forNighthawk and will enhance the efficiency of our field operations." For further information please contact: Nighthawk Energy plc 01271 882160David Bramhill, Managing Director office@nighthawkenergy.netwww.nighthawkenergy.net Hanson Westhouse Limited 0113 246 2610Tim Feather tim.feather@hansonwesthouse.comMatthew Johnson matthew.johnson@hansonwesthouse.com Bishopsgate Communications Limited 020 7562 3350Dominic Barretto dominic@bishopsgatecommunications.comFran Read fran@bishopsgatecommunications.com This information is provided by RNS The company news service from the London Stock Exchange