Settlement of litigation

20 September 2016

Nighthawk Energy plc ("Nighthawk" or "the Company")

Settlement of litigation

Nighthawk, the U.S. focused oil development and production company (AIM: HAWK and OTCQX: NHEGY) announces the global settlement of all litigation and claims arising out of agreements with Running Foxes Petroleum, Inc. (RFP) and related issues with RFP's joint venture partner, American Patriot Oil and Gas Inc. (APO). 

This global settlement agreement reflects the parties desire to fully and completely resolve all claims and defences in the federal court litigation and state court litigation. 

Under the terms of the settlement, which was executed on September 19, 2016, Nighthawk, RFP and APO were released from all past, current, and future claims related to all current, pending and potential future issues between the parties within the Arikaree Creek Field. The parties agreed to dismiss all current and pending federal and state litigation and administrative regulatory matters, between them related thereto. 

As part of the global settlement, no money was exchanged by the parties, however Nighthawk has assigned RFP a minor override royalty interest in one lease in Arikaree Creek, and APO has assigned Nighthawk certain leases just south of Arikaree Creek totalling approximately 640 acres with Nighthawk assigning APO a minor override royalty interest in those leases. Running Foxes has agreed to certain terms regarding any future water flood projects that Nighthawk might pursue in Arikaree Creek. 

Rick McCullough, Chairman of Nighthawk, commented: "I am pleased to announce a global settlement agreement that brings an end to ongoing issues and disputes between the parties. We look forward to dedicating renewed attention to the development of our Colorado assets."

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