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5 Feb 2009 07:00
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NIGHTHAWK ENERGY PLC
PLACING OF Β£7Β MILLION
The directors of Nighthawk Energy plc ("Nighthawk" or the "Company"),Β the US focused hydrocarbon production and development company,Β are pleased to announce that the CompanyΒ has raised Β£7Β million throughΒ a conditional placing of new ordinary shares at a price of 20p eachΒ (the "Placing")Β through its broker, Hanson Westhouse LimitedΒ ("HansonWesthouse").
The net proceeds of the Placing will be primarily applied to the continuing development of the Company's key projects: the Jolly Ranch Group, located inΒ ColoradoΒ and the Buchanan GroupΒ and Devon Oilfield waterflood projects located inΒ MissouriΒ andΒ KansasΒ respectively.
The Company hasΒ raised Β£7Β million (before expenses) through theΒ conditionalΒ placing of 35,000,000 new ordinary shares at a price of 20p per shareΒ (the "Placing Shares").
The PlacingΒ is conditional, inter alia,Β on completion of the placing agreement entered into between the Company and HansonWesthouseΒ and on admission of the Placing Shares to trading on AIM by 8.00 a.m. on 10 February 2009 (or such later time and/or date as HansonWesthouseΒ and the CompanyΒ may agree, but not later than 5.30 p.m. on 24 February 2009).
Following the Placing, there will be 265,543,623Β ordinary shares of 0.25p each in issue.
David Bramhill, Managing Director, commented:Β "The success of this fundraising, which wasΒ significantlyΒ oversubscribed,Β demonstratesΒ that our business model of focusing on the development of high reward and lower risk assets continues to attract strong institutional support amidst volatile and uncertain markets.
"The funds raised will principally be applied to continue the development of the Jolly Ranch Group project. We look forward, in particular, to extending drilling further to the north into the Middle Mist area. The evaluation of historical data fromΒ wellsΒ previously drilledΒ in the area by Norske HydroΒ and others in the 1980s has been very encouraging. TheΒ drillingΒ programmeΒ will be designedΒ to confirmΒ the potential of the Middle Mist acreageΒ and extend theΒ proven areaΒ of the Jolly Ranch Group project.
"Our success at Jolly Ranch is generating increasingΒ industryΒ interestΒ andΒ we are currently inΒ discussionsΒ with a number of partiesΒ over the saleΒ of a minority of ourΒ interestΒ in the project. Indications are that any such sale would provide an attractive benchmark for the value of the Jolly Ranch project.
"The directors of Nighthawk estimate that theΒ currentΒ operating breakevenΒ threshold at Jolly Ranch isΒ an oil price of approximately US$25Β per barrelΒ and this is expected to reduce as the rates of key service providers decrease.
"The directors believe, along withΒ manyΒ other industryΒ participants, that oil prices will strengthen duringΒ 2009 and beyond. As such, committing to focused development spending at this timeΒ will placeΒ NighthawkΒ in a strong position to capitalise from the anticipated upturn.
"AΒ proportion of the proceeds raised willΒ be used to conclude the late stageΒ development of the Buchanan GroupΒ and Devon Oilfield waterflood projects where rapidΒ progress is being madeΒ and production figures for both oil and gas are increasing. An update and review of these operations will be issued in the near future.
"To conclude, we will continue to manage ourΒ projectΒ portfolio in a proactive manner and strive to maintain the pace of development of our key projects in order to generate value for our shareholders."
Enquiries:
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Nighthawk Energy plc
David Bramhill, Managing Director
Tim Heeley, Commercial Director
www.nighthawkenergy.net
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01271 882160
020 7887 1450
07956 525433
office@nighthawkenergy.net
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Hanson Westhouse Limited
Tim Feather
Matthew Johnson
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0113 246 2610
tim.feather@hansonwesthouse.com
matthew.johnson@hansonwesthouse.com
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Bishopsgate Communications Limited
Nick Rome
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020 7562 3395
michael@bishopsgatecommunications.com
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