19 Jul 2018 07:00
19 July 2018
NIGHTHAWK ENERGY PLC ("Nighthawk" or "the Company")
Update on Chapter 11 cases
Nighthawk, the US-focused oil development and production company (AIM: HAWK and OTCQX: NHEGY) today provides an update on the sale process pursuant to section 363 of the US Bankruptcy Code.
On 18 July 2018 the Company closed the previously announced sale of substantially all of the assets of the Company's US operating subsidiary Nighthawk Production LLC, including all oil and gas wellbores, saltwater disposal wells, injection wells, leases and equipment, to Polaris Production Partners LLC, an affiliate of Morse Energy Capital Partners, for an all-cash purchase price for the acquired assets of US$18.0 million. The sale was approved by the US bankruptcy court on 28 June 2018.
The net proceeds of the sale are to be applied in reduction of the Company's loan with Commonwealth Bank of Australia and in payment of allowed expenses of administration incurred in the course of the Chapter 11 cases. The sale will yield no residual value for shareholders, whose interests are subordinated by U.S. bankruptcy law to the claims of creditors and expenses of administration.
It is the Directors' intention that the Company shall be wound up, and its remaining, non-operating assets liquidated under provisions of the US Bankruptcy Code.
The Company's securities remain suspended on AIM pursuant to the announcement dated 1 May 2018. In light of the previously announced resignation of the Company's nominated adviser, it is expected that the Company's securities will be cancelled on AIM at 7.00am (London time) on 30 July 2018.
Enquiries:
Nighthawk Energy plc
Rick McCullough, Chairman +1 303 407 9600
Chris Kohler, Interim Chief Financial Officer +44 (0) 20 3582 1350