1 Jun 2009 07:00
Nighthawk Energy plc
Sale of Interest in Jolly Ranch Group Project
The directors of Nighthawk Energy plc ("Nighthawk" or "the Company") (AIM: HAWK), the US focused hydrocarbon production and development company, are pleased to announce that on 31 May 2009 Nighthawk Production LLC ("Nighthawk Production"), a wholly-owned US subsidiary of Nighthawk, and Running Foxes Petroleum Inc. ("Running Foxes"), executed a Purchase, Sale and Option Agreement (the "Agreement") with San Severina Holdings SA, a Swiss based investment company ("San Severina"), in respect of the Jolly Ranch Group Project ("Jolly Ranch").
San Severina has agreed to acquire a 20 per cent. working interest (10 per cent. from each of Nighthawk Production and Running Foxes) in the core area of Jolly Ranch, covering approximately 50,000 net acres.
In addition, through options over six blocks covering the remaining 232,000 net acres (the "Options"), San Severina has the right to acquire a 20 per cent. interest (10 per cent. from each of Nighthawk Production and Running Foxes), in the remaining areas of Jolly Ranch, including the adjacent Middle Mist and Mustang Creek areas.
The initial purchase consideration to be paid, net to Nighthawk Production, in respect of the purchase of the working interest in the core area of Jolly Ranch and the grant of the Options, is US$10,940,000. Completion of the transaction and settlement of the initial consideration is due by 15 June 2009. Assuming the exercise of all of the Options, the additional consideration, net to Nighthawk Production, will be an aggregate of US$29,040,000, making a total transaction value of US$39,980,000.
On completion of the Sale, Nighthawk Production and Running Foxes will each retain a 40 per cent. interest in the core area of Jolly Ranch and, prior to the exercise of the options, a 50 per cent. interest in the remainder of the project acreage. Running Foxes continues as operator. All drilling and development costs going forward will be met according to each partner's new equity percentage working interest.
San Severina's project interest will be managed by Ascent Resources plc ("Ascent") through their asset management joint venture and 20 per cent. of San Severina's interest (a 4 per cent. interest in the project) will be assigned to Ascent on completion.
Enquiries:
| Nighthawk Energy plc David Bramhill, Managing Director Tim Heeley, Commercial Director | 01271 882160 020 7887 1454 07956 525433 office@nighthawkenergy.net www.nighthawkenergy.net |
| Hanson Westhouse Limited Tim Feather Matthew Johnson | 020 7601 6100 tim.feather@hansonwesthouse.com matthew.johnson@hansonwesthouse.com |
| Bishopsgate Communications Limited Nick Rome | 020 7562 3395 nick@bishopsgatecommunications.com |