Nighthawk Energy plc Bank Negotiation and 2016 Plans (3724L)

TIDMHAWK

RNS Number : 3724L

Nighthawk Energy plc

11 January 2016

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Bank Negotiation and 2016 Plans

Nighthawk, a US focused oil company (AIM: HAWK and OTCQX: NHEGY), provides an update on the Company's Reserve Based Loan ("RBL") and change of name of Nominated Adviser and Broker.

RBL Loan Amendments

On January 8, 2016, the Company completed negotiations with its banking partner, Commonwealth Bank of Australia ("CBA"), that have resulted in a series of amendments to the RBL covenants including leverage ratio and elimination of the minimum liquidity requirements. Following the amendments, the Company expects to be within covenant parameters for the December 31, 2015 reporting period. The Company and CBA will continue to work together going forward in an effort to ensure continued compliance with loan covenants based on existing market conditions.

The amendments included the redetermination of the Company's borrowing base to $23 million. As of the date of this release, the Company has $27 million of outstanding borrowings, therefore a $4 million repayment is required. Currently, the Company has approximately $6 million of cash available. Based upon current projections, the Company believes that following the required repayment it will have adequate liquidity to continue its existing operations through 2016.

Update on Water Flood Project

Progress of the Company's future water flood project continues. As announced on 10 December 2015, the formal hearing with the Colorado Oil and Gas Conservation Commission ("COGCC") is due on January 26-27, 2016. As is common in these hearings, the application is being contested, however, the Company and its lawyers are confident that it has a strong case and expect that the project will be approved.

Change of name of Nominated Adviser and Broker

The Company notifies that its Nominated Adviser and Broker has changed its registered name from Westhouse Securities Limited to Stockdale Securities Limited.

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Enquiries:

 
 Nighthawk Energy plc 
 Rick McCullough, Executive 
  Chairman                          +1 303 407 9600 
 Kurtis Hooley, Chief 
  Financial Officer            +44 (0) 20 3582 1350 
 
 Stockdale Securities 
  Limited                      +44 (0) 20 7601 6100 
 Alastair Stratton 
 Robert Finlay 
 David Coaten

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 11, 2016 02:00 ET (07:00 GMT)

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