OilVoice - Nighthawk Energy Terminates Sale of Interest in Jolly Ranch Group Project

Nighthawk Energy Terminates Sale of Interest in Jolly Ranch Group Project

Tuesday, June 16, 2009

The directors of Nighthawk Energy plc, the AIM listed US focused hydrocarbon production and development company, announce the termination of the Purchase, Sale and Option Agreement (the “Agreement”) between San Severina Holdings SA, Running Foxes Petroleum Inc. and Nighthawk Production LLC, a wholly owned subsidiary of the Company, in respect of the sale of a minority interest in the Jolly Ranch Group Project.

As announced on 1 June 2009, completion and settlement of the initial consideration under the Agreement were due by 15 June 2009. No payment from San Severina has been received.

Since the beginning of April 2009, by which time due diligence was complete and the Agreement was in final form, a number of extensions were requested by San Severina until the Agreement was signed on 31 May 2009.

Since April the oil price has risen very strongly and this factor, together with San Severina’s failure to complete the transaction as agreed, resulted in both Nighthawk and Running Foxes concluding that it was in each of their best interests to terminate the Agreement.

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