Nighthawk Energy Regulatory News (HAWK)

20 April 2018

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Update on CBA Loan

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update to its existing reserves-based term loan with the Commonwealth Bank of Australia ("CBA").

On 28 December 2017 the Company announced an amendment ("9th Amendment") to the CBA loan ("CBA Loan"), extending the maturity of the CBA Loan to 1 June 2018. On 25 January 2018, pursuant to the 9th Amendment to the Credit Agreement, the Company appointed SSG Advisors, LLC ("SSG"), an US investment banking firm, to advise the Company on available options for restructuring the CBA Loan principal balance of $21.25 million prior to its maturity date.

SSG has completed the solicitation phase of its debt restructuring process. This process has, thus far, produced only proposals to directly purchase the Company's oil and gas producing assets at a value below that of the CBA Loan principal. Pursuant to the 9th Amendment, on 10 April 2018 the Company entered into a non-binding letter of intent with one of the parties identified by SSG to explore the possibility of an asset purchase on or before the maturity date of 1 June 2018.

Additionally, the Board of Directors is in discussions with its major stakeholders regarding a possible alternative proposal for restructuring the CBA Loan and a recapitalization of the Company.

On 19 April 2018, the Company received a notice of default from CBA relating to its 18 April 2018 deadline for a definitive agreement of sale or restructure as set forth in 9th Amendment. Consequently, the Company is subject to possible remedial actions by CBA that may include foreclosure or other recourse against assets of the Company and its U.S. subsidiaries. It is, however, the Company's belief that CBA will continue to allow the Company to pursue in good faith its plan of restructure or asset sale on or before 1 June 2018, to cure the default.

Whilst there can be no certainty the Company will proceed with the asset sale route, it is likely that any such sale would be effectuated through a series of voluntary Chapter 11 bankruptcy filings by the Company and its US operating subsidiaries and would yield no residual value for shareholders whose interests are subordinated to the claims of creditors and expenses of administration.

The Company continues to meet all its operating and financial obligations on a timely manner and its current cash position is approximately $1,000,000. This amount is sufficient to maintain its current operating level and cover all these expenses, save for the repayment of the CBA Loan principal through the anticipated restructuring process.

Further announcements will be made in due course.

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU 596/2014).