News

July 02, 2009

Nighthawk Sells The Centurion Project For US$5 Million To Support Jolly Ranch Development

Bouncing back from last month’s aborted Jolly Ranch deal, AIM-quoted Nighthawk Energy has sold its 50 per cent interest in the Centurion development project in Kansas for US$5 million in cash. The buyer, privately-owned Osceola Hydrocarbons Limited which shares directors and investors with Nighthawk, will also pay an annual royalty equal to five per cent of the project’s gross oil and gas revenues.

Broker Daniel Stewart said this immediate cash injection would provide Nighthawk with sufficient cash to cover a burn rate of US$1.2 million to $1.51 million for about four months of exploration and development activities, thereby supporting the company’s efforts to prove up reserves on its core Jolly Ranch and Waterflood projects in the US. 

According to independent consultants Oilfield Production Consultants Limited, this is a “reasonable” deal for Nighthawk, monetizing one...