Nighthawk Energy Regulatory News (HAWK)

1 May 2015

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Operations Update

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update at its project in the Denver-Julesburg Basin, Colorado.

Highlights

· Production maintained through Behind Pipe and remedial treatment program in March and April 2015

o Average gross production YTD of 2,002 bopd (2014: 1,935 bopd)

· Behind Pipe and remedial treatment program to continue over May and June 2015

· Completed initial shooting of 3D seismic for the two new Joint Ventures

· Hedges at average $67.67 per barrel until April 2016 over volumes equivalent to more than 55% of 2014 net production

· New crude oil marketing arrangements providing wider access to markets

· Borrowing base update

Production/Operations

As reported in mid-February 2015, Nighthawk's behind pipe and work-over operations were delayed throughout the winter due to unusually poor weather conditions. There was a further bout of very heavy snowfall in late February 2015, which extended delays in the field. However, progress has been made in March and April 2015 with these operations. Throughout January, February and early March 2015, Nighthawk experienced an inordinate amount of mechanical failures on 10 wells (14 separate projects) and rig activity was redirected to maintain production. This further delayed the behind pipe program and remedial solvent treatment plans. These programs have now been reinstated and are progressing well as discussed below, however production did not reach the anticipated 2,500 bopd gross levels during the first quarter.

Since releasing the drilling rig in January 2015, Nighthawk has been maintaining production by low cost behind pipe completions in the Pennsylvanian (Marmaton) section and co-mingling with Mississippian Spergen production. In addition, remedial solvent treatments have been applied in some of the existing Mississippian Spergen perforated zones improving the well performance. Over time, the perforations in the Mississippian Spergen in some wells may become plugged and a solvent treatment is required to clean out the perforations and re-establish optimal production. In one well, additional perforations were added to the lower Mississippian Spergen section and the results yielded more than 100 bopd gross incremental production after the procedure. Another well was treated with a proprietary solvent treatment that yielded incremental production of approximately 70 bopd. Nighthawk plans to continue to implement solvent treatments in the Mississippian Spergen in the Arikaree Creek field and two of the wells located in the Snow King area. The solvent treatment design is a proprietary fluid and the vendor is currently scaling up their operations with the requisite equipment and products to facilitate a broader roll out of the operational procedure across our Mississippian Spergen wells in the near future. Additional pay zones in the Marmaton have been identified in several existing wells, which will be completed and co-mingled in the next couple of months.

Gross and net* production for the first four months of 2015 is summarised below.

* Net production is based upon Nighthawk's Net Revenue Interest of approximately 82%

Joint Venture 3D Seismic Program

The mutual 3D seismic shoot conducted by Cascade and Nighthawk in the Monarch and El Dorado Joint Venture areas was finished in mid-March 2015 comprising 117 square miles. The shoot conclusion was delayed by almost a month due to the winter weather conditions. It is anticipated that the data will be completely processed and interpreted by mid-summer.

Commodity hedging

Nighthawk instituted a new commodity hedging program in the fourth quarter of 2014. The use of financial derivatives, which is common in the US energy markets, allows Nighthawk to provide more certainty around its future drilling programs and cash liquidity.

Set out below is a summary of Nighthawk's hedges through to the end of 2016:

Over the 12 month period from May 2015 to April 2016, Nighthawk has hedges in place over future oil production equivalent to more than 55% of calendar 2014 net oil sales, protecting an average minimum price of $67.67 per barrel sold (WTI NYMEX basis).

Crude Oil Marketing

Nighthawk also announces that it has changed its oil marketing arrangements to provide it broader access to markets that can improve its netback pricing. The Company has historically marketed its oil through a firm that sells the oil through its own midstream network. With the increased production of oil in the State of Colorado, new trucking and pipeline options are now available. In the first quarter of 2015, the discount to WTI NYMEX that the Company was receiving for its oil under its historical oil marketing arrangements widened. As of 1 April 2015, the Company contracted with a new oil marketing firm which has arrangements with multiple midstream participants. The new oil marketing arrangement is more favourable than the Company's historical arrangements and brings the Company's net back pricing back to historic levels relative to WTI NYMEX.

Reserves Based Loan

In April 2015, the Company closed a further quarterly borrowing base redetermination with Commonwealth Bank of Australia based on reserves at 31 December 2014, which, in line with many other reserves based loans in a declining oil price environment, resulted in a small reduction in the borrowing base amount, from $35.0 million to $33.0 million.

However, with new wells completed in early 2015 and increased production in a number of wells through remedial solvent treatments and behind pipe procedures, which is incremental to reserves, the Company initiated an early redetermination as of 31 March 2015. The Company is in advanced discussions with the Commonwealth Bank of Australia regarding increasing the borrowing base and is confident of the outcome.  A further announcement will be made at the appropriate time.

Rick McCullough, Chairman of Nighthawk, commented:

"This winter was very challenging for our operating team and while we lost some ground on our 2015 production targets, we are now beginning to see the results of our behind pipe and solvent treatment programs. Maintaining our production levels, as we largely did in spite of the record number of maintenance projects and our normal well declines, was a major accomplishment. Our second quarter results are improving and we hope to make up some of the lost ground during this quarter.

"The new oil marketing arrangements entered into by Nighthawk represent an important step which will broaden our oil marketing options going forward. We will have access to several trucking and pipeline solutions so will be able to choose the most favourable pricing arrangement."

- End -

Definitions and Glossary

Behind pipe - behind pipe opportunities, production or reserves refers to potentially producible zones that have been penetrated by a well bore but are separated from the well bore by casing (pipe) and cement and hence cannot be produced without recompleting the well in such behind pipe zones. Once completed and proved to be productive, behind pipe opportunities can increase production, cash flow and reserves.

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.

Swap - a commodity price swap is used to hedge exposure to changes in a commodity price. By selling oil price swaps at a specific price, a producer of oil can fix the price it receives, and therefore its future income and cash flows, over the period and volume of the swap contract.

Zero Cost Collar Contract - a commodity price collar contract is used to hedge exposure to changes in a commodity price outside of a range. By buying a put option, a producer of oil can set a floor in the price of oil that it receives and at the same time it can sell a call option which sets a cap in the price of oil that it receives. In a zero cost collar contract the proceeds from the sale of the call option directly offset the cost of buying the put option giving a net zero upfront cost of entering into the contract to the producer.

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