Nighthawk Energy Share Discussion Threads

[mallorca 9] 10/1/2017 10:40

That in itself must have significant value.

[mallorca 9] 10/1/2017 10:39

The important bit ..

'The Company will receive from Cascade an assignment of their interest in all remaining acreage in the JDA'.

To me that say's that the JV acreage is still live for future development on the agreed 50/50 cost basis.

[mallorca 9] 10/1/2017 10:37

Re the JV ... from the Interim Report Statement end September ..

'Secondly, the Company has agreed upon terms with Cascade Petroleum, our JDA partner in the Monarch development area, regarding our two well drilling commitment, subject to finalising binding documentation. In exchange for relieving the Company of the drilling commitment and the liquidating damages under the JDA, the Company will provide Cascade $500,000 cash and will complete an up-hole zone at the Company's expense which is estimated to be $75,000, provide Cascade with an increased revenue share from the Monarch 10-15 well, and assign a 2% overriding revenue interest in the land section surrounding the Monarch 10-15 wellbore. The Company will receive from Cascade an assignment of their interest in all remaining acreage in the JDA. In settling these two legal items, the Company will have resolved business uncertainties and will position the Company to move forward with its water flood Pilot Project without these external distractions'.

[mallorca 9] 10/1/2017 10:22

We're also currently doing a workover on Monarch 15. Hawk now as a 25% interest.

[mallorca 9] 10/1/2017 10:17

Phil,
re the JV .. the original terms were that Hawk 100% fund 6 drills and that any oil found was split 50/50.
Once this term was satisfied it then bought Hawk into future equal rights in the JV acreage (previously Cascade 100%).
After 5 largely uninspiring drills Hawk fell into financial problems for all the reasons that we know and did a deal to get out of the 6th drill.
This then satisfied their 'entry' conditions.
Rick went into the JV because he saw great potential in the Cascade acreage with over 100 drill locations identified.
I understand that the JV is very much still live. Future drills will now be on a 50/50 shared cost basis with revenues also shared 50/50.
I will do a bit of reading up on this.
I also think that Jolly Ranch will come back into play soon - shale.

[philmac56] 10/1/2017 10:08

Mallorca...Is this still the case re 50/50 costs.
Is the JV still applicable!??
We were fined, but has the acerage.
So are we in or out of JV.
I am sure they want to recommence drilling, but why in JV if we only get 50%..Drill our own wells.

Hawk will want to commence a fresh drill campaign in their JV acreage with Cascade which will now be on a 50/50 shared cost basis.

[mallorca 9] 10/1/2017 09:58

We also already have positive cash flow due to the increased oil price. This positive cash flow will increase with WF. Our cash figure is increasing each month.
For the first time in a long time we have far more positives than negatives.
I think that we agreed to pay CBA 15% interest monthly in advance when things were desperate last year. They can also call in the whole loan this March if they choose to.
That's why I'm sure that the Owners and Management will want to renegotiate a new long term finance arrangement now, given our much stronger position and cash flow to give the business more certainty going forward and to finance the future growth.
The Owners are very ambitious for Hawk's potential and, whatever we may think of Rick, he is a former mid cap CEO of the year who wouldn't have hung around if he didn't see significant growth potential here.
I heard recently on CNBC that last year over 100 USA energy company's filed for bankruptcy. Rick seems to have negotiated us through that, with substantial financial backing from the Owners. Now it should be growth and more growth for the next 5 years and beyond.

[mallorca 9] 10/1/2017 09:46

Previously our financing facility with CBA was much higher. It was reduced as our reserves value was reduced due to the very low oil price. This has now reversed AND we also have WF signed off and ready to go which significantly increases reserves recoverable. It's reasonable therefore for Hawk to seek a reinstatement of our previous overdraft limit or even to agree a completely fresh arrangement and overdraft.
Hawk will want to commence a fresh drill campaign in their JV acreage with Cascade which will now be on a 50/50 shared cost basis.

[philmac56] 10/1/2017 09:34

Mallorca..Again I can't disagree.
I'm keeping one eye on Cogcc for November production figures.
Prob only confirm what we know.
But I agree, if we do get the RNs with refinance and flow, then our share price should move, rapidly!

[mallorca 9] 10/1/2017 09:13

Hi Phil,

but it's strange that there has not been any mention of the bank.
The last financing agreement was conditional upon WF by end October - an RNS was then required extending this to end Nov.

If they are attempting to put a better and new long term finance agreement with CBA in place then you would expect that they would have to demonstrate WF flow rates.
Just leads me to think that we may receive an update with both initial flow rates and new bank finance arrangements.
If I'm right then that will be extremely positive for the share price

[reallyrich] 10/1/2017 09:12

It could well be the case. But Rick does not like to give anything away.

Hope you bought my tip. Already up 25% since I tipped it 10 days ago

[philmac56] 10/1/2017 09:07

Mallorca..Can't disagree, but imo the Blackcomb workover is the reason injection has not started.

[mallorca 9] 10/1/2017 08:44

So .. so many hurdles negotiated in 2016 .. RF settled, Cascade JV settled, WF Pilot approved, WF equipment procured and leased for 5 years, WF Pilot installed tested and signed off, WTI at circa $53 with good hedging in place at average $54 .. everything ready to go , so why the pause ?

My own view is that they are using their stronger position to renegotiate financing and to put funds in place for an exciting 2017 programme, then it's all systems go.

Any other thoughts from anyone ?

[1628386] 07/1/2017 18:38

Closed at mid 1.30. Confirmed by IG Index which is accurate

The 161,063 trade at 1.249p was my top up

[blakieboy7] 07/1/2017 10:26

The last trade was recorded at 1.25p, so must have been a sell

[chesty1] 07/1/2017 09:38

Well I play around with dummy buys and sells to see how the market is playing it...Didn't have time to test a buy but could sell at 1.25p just before close.Was nice and strong into close for a change.Bring on the next rns folks and just hang on in there the rise is a coming, 2017 could be a very nice year for hawkers.

[base98] 07/1/2017 09:07

1.30 according to MAM

[philmac56] 07/1/2017 08:55

So did we close at
1.25p
Or
1.3p???

[philmac56] 06/1/2017 16:17

Mallorca..The releasing oil will be the Blackcomb well!!!

[mallorca 9] 06/1/2017 16:10

Some very strong buying coming in.
A coiled spring ready to bounce up.

[philmac56] 06/1/2017 13:27

We need imo to hear/read that Blackcomb 5-14 has finished it's workover asap.
The longer that well is out of action, then the commencement of injection will be delayed imo
Roll on effect of lower production!!!

[lptuf93] 06/1/2017 12:45

Thanks philmac, I remembered blackcomb 5-14 being the only prolific well out of those being used for injection. If they were on then production would have stayed flat.

Quite confident on the next few RNS's.

[philmac56] 06/1/2017 12:31

maxwell...so for starters we need to get a bopd back to 390, where we were in Aug, for starters..then we are on a bonus once we hit 506bopd from those 4 producing wells!!! because two will be injection!