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AIM quoted Nighthawk Energy plc (AIM:HAWK) is a dynamic UK registered energy company with a focus on the development of, and production from, hydrocarbon projects in the USA, a country with low political risk and a major shortfall in domestic oil and gas production.
Nighthawk Energy closes open offer as part of £18.15 mln fundraising
The open offer for 74,003,918 new shares at 2.5 pence each to raise £1.85 million before costs was taken up by 44.5 percent of qualifying shareholders
Nighthawk Energy (LON:HAWK, OTCQX:NHEGY) has closed the open offer that was part of a £18.15 million fundraising announced at the end of December 2011.
The group is using the money to acquire a further 25 per cent of the Jolly Ranch project from partner Running Foxes for US$12.5 million and to finance this year’s work programme.
When completed, the deal with Running Foxes will give Nighthawk a 75 per cent stake and operatorship of the Colorado shale oil play. A total of US$8.5 million will be paid in cash, while Running Foxes will receive US$4 million-worth of shares.
The open offer for 74,003,918 new shares at 2.5 pence each to raise £1.85 million before costs was taken up by 44.5 percent of qualifying shareholders.
Non-executive director Stuart Eaton applied for 520,000 shares under the open offer. He will thus increase his holding to 996,500 Nighthawk shares, or 0.13 per cent of the enlarged capital.
Chairman Stephen Guttering said: "Nighthawk has successfully raised over US$21 million net of expenses with broad based support from institutions and both large and small existing shareholders.
“The funds raised exceeded our expectations and will not only fully fund the original planned work programme, but will allow us to extend and accelerate our development plan for the Jolly Ranch project.
“We now move on to operational implementation, with the first significant investment in production improvement for many months now scheduled for February. At that time we will update shareholders on our plans and on production over the final period prior to Nighthawk assuming operatorship," the chairman added.
It was also revealed when the fundraising was announced that Running Foxes had entered exclusive discussions to sell its remaining 25 per cent stake in Jolly Ranch to a “third party”.
Nighthawk’s operatorship of the project will allow it to control the speed and method of development at Jolly Ranch going forward.
