Nighthawk Energy plc Banking Agreement (8443J)

TIDMHAWK

RNS Number : 8443J

Nighthawk Energy plc

03 July 2017

3 July 2017

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Bank Negotiation

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

RBL Loan Amendments

On 30 June 2017, the Company completed negotiations with its banking partner, Commonwealth Bank of Australia ("CBA"), that have resulted in a series of modifications to the RBL facility, and on the same day executed the eighth amendment to the existing bank agreement ("Amended Agreement").

A summary of the key terms and conditions of the amended Agreement are as follows:

   --     $23 Million principal amount; 

-- Matures on 31 December 2017, with Nighthawk to provide CBA with a refinancing plan on or before 31 October 2017;

-- The Company to remit cash payment of up to $1.75 million to CBA prior to 7 July 2017, to be used as principal reduction;

   --     Interest will be at Libor plus 6% on the outstanding principal, payable monthly in cash; 

-- By 31 August 2017 existing unsecured loan note holders to agree to deferral of all cash interest and royalty payments for a 9-month period from 1 July 2017;

-- Covenants consistent with the covenants in the prior agreement with CBA, save that a production milestone relating to the Arikaree Creek water flood Pilot project has been set at 30 September 2017.

The Company is negotiating the deferral of the interest and royalty payments with existing loan note holders. A further announcement will be made in due course.

As at 29 June 2017, the Company had $3.2 million of cash on hand.

The above modifications to the RBL, were completed to allow the Company to continue to execute on its Pilot project. As previously notified, the Company expects that the water flood project will increase production, reserves and cash flows of the Company in late 2017 and beyond.

-End -

Enquiries:

 
 Enquiries:Nighthawk 
  Energy plc 
 Rick McCullough, Executive 
  Chairman                          [phone] 
 Kurtis Hooley, Chief 
  Financial Officer            [phone] 
 
 Stockdale Securities 
  Limited                      [phone] 
 Richard Johnson 
 David Coaten 
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU 596/2014).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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July 03, 2017 02:00 ET (06:00 GMT)