Nighthawk Energy Regulatory News (HAWK)

31 July 2013

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Purchase of remaining 25% Working Interest in Smoky Hill and Jolly Ranch Projects

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces that its wholly owned subsidiary, Nighthawk Production LLC, has completed the purchase of the remaining 25% working interest in its Smoky Hill and Jolly Ranch projects in Colorado from Running Foxes Petroleum, Inc. ("RFP").

Key Terms of the Deal

·; Acquisition by Nighthawk from RFP of an additional 25% working interest in all leases in the Smoky Hill and Jolly Ranch projects in the Denver-Julesberg Basin, Colorado in which Nighthawk currently owns a 75% working interest and is the operator

·; Total acreage of the leases is approximately 300,000 gross acres in Lincoln, Washington and Elbert counties, Colorado

·; The purchase price is US$12 million, payable in cash

·; The acquisition has been funded by a short-term bridging loan, the terms of which were announced on 19 July 2013

·; As a result of the acquisition of the additional 25% working interest, Nighthawk now owns a 100% working interest in all its leases and the property, equipment and information associated with the leases including all producing wells and geological and drilling data

Background

Prior to January 2012, Nighthawk and RFP were engaged in a 50/50 partnership to develop the properties now known as the Smoky Hill and Jolly Ranch projects (the "Projects"). RFP was the operator.

In January 2012 Nighthawk acquired a further 25% working interest from RFP and assumed the operatorship of the Projects.

On 8 October 2012, under the terms of a settlement agreement between the two parties (the "Settlement Agreement"), Nighthawk was granted an option to purchase the remaining 25% working interest from RFP on pre-agreed terms. On 3 July 2013 Nighthawk exercised the option at the pre-agreed purchase price of US$12 million and on 19 July 2013 entered into a short term debt facility to enable it to fund payment of the consideration of US$12 million in cash.

During the period from 8 October 2012 to the completion of the purchase on 30 July 2013, the Settlement Agreement provided that all operations would be conducted on the basis of Nighthawk having a 100% working interest with RFP assuming the position of non-consenting partner. During that period, Nighthawk has funded all expenditures on a 100% basis which includes the drilling of six wells, five of which were on the Arikaree Creek oil field. In the period immediately prior to the Settlement Agreement, RFP non-consented to three additional wells Nighthawk drilled on the Jolly Ranch project.

Nighthawk already receives a minimum of 80% net revenue interest in oil production from these nine wells which was reported as running at over 1,400 barrels/day on 12 July 2013. Had the option over the Projects not been exercised RFP's back-in rights to acquire an interest in the nine wells under the terms of the Joint Operating Agreement ("JOA") would have been restored. The primary impact of the purchase of the remaining 25% on those wells is that the back-in rights of RFP under the JOA are now no longer valid and that going forward RFP no longer has any interest, rights nor obligation in connection to the Projects. Other than 100% ownership of the working interests Nighthawk will assume no further liabilities as a result of the transaction.

Stephen Gutteridge, Chairman of Nighthawk said:-

"We are pleased to have finally attained our goal of 100% ownership and control of the Smoky Hill and Jolly Ranch projects and we are grateful to our largest shareholders for providing the financial support to accomplish this. We will now press on with our plans to increase Arikaree Creek production and to establish the commerciality and value in the rest of our extensive acreage position."

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