Nighthawk takes acreage at Cisco Springs

Nighthawk Energy plc, the US focused hydrocarbon production and development company, announces the acquisition of a further 5,977 acres of land adjacent to the Company’s currently held acreage at Cisco Springs, bringing the total area held to approximately 24,000 acres. Nighthawk holds a 50 per cent. working interest in the project. Denver-based private energy company Running Foxes Petroleum Inc. holds the remaining 50 per cent. and is also the operator of the project.

The 5,977 acres were successfully bid for in the recent Utah School and Institutional Trust Lands Administration Sale, held in Salt Lake City. Running Foxes, acting jointly with Nighthawk, was among the top four bidders for acreage in the sale.

Oilfield Production Consultants Limited (”OPC”) conducted a Competent Person’s Report (”CPR”) in respect of the Cisco Springs project in March 2007. At that time the acreage evaluated was approximately 16,500 acres and Nighthawk held a 37.5 per cent. interest in the project. The net reserves of natural gas attributable to Nighthawk were P90 (proven) 74.9 bcf (billion cubic feet) and P50 (proven + probable) 94.2 bcf. OPC concluded that an NPV10 of US$192.3 million, net to Nighthawk was attributable to the project. The Company’s interest in the project has subsequently risen to 50 per cent through the acquisition of a further 12.5 per cent. interest from Running Foxes in December 2007.