Nighthawk, the US focused oil and gas development and production company, announces that it has secured a three year Equity Finance Facility of up to £25 million (the "EFF") with Darwin Strategic Limited ("Darwin"), a part of the Evolution Group.
Use of Proceeds
The funds available to draw down under the EFF will be used to continue the development of the Company's asset base. Although a five well drilling programme has been permitted at Jolly Ranch, the Company’s lead project, the immediate operational focus is the completion and recompletion of a number of wells that have already been drilled. The objective will be to obtain a better understanding of the completion techniques required to deliver a commercial project with the added benefit of increased near-term production.
In parallel with the continuing development programme, the Company has commenced a strategic review of its asset base to ensure that future spend is focused on delivering shareholder value as rapidly as possible.
At the same time, Nighthawk continues to progress with Macquarie Tristone the marketing process to attract a potential farm-in partner for a proportion of the Jolly Ranch project. A number of firms have viewed the data room, but no offer has been received as yet. The process will continue, but in the event that a suitable transaction is not in prospect by the end of the year, the Board’s current intention is to withdraw from the process until further progress has been made in understanding the drilling and completion techniques which are best suited to the Jolly Ranch project.
The Company has appointed Gaffney Cline & Associates to undertake a Reserves and Resource assessment of Jolly Ranch, the completion of this report is anticipated late Q4 2010/early Q1 2011 following completion of the Schlumberger Eclipse Reservoir simulation model.