Nighthawk Energy Secures Additional Financing for Jolly Ranch Project
Nighthawk Energy has conditionally raised £5 million (before expenses) through an institutional placing of new ordinary shares at a price of 20p per share by its broker, Hanson Westhouse Limited. The net proceeds of the Placing will primarily be applied to the continuing development of the Company's flagship project, the Jolly Ranch Group in Colorado.
The Company is proposing to raise £5 million (before expenses) through a conditional placing by HansonWesthouse of 25,000,000 new ordinary shares at 20p per share. The existing power granted by shareholders to the directors of the Company to allot shares for cash is insufficient to allow the issue of all of the Placing Shares.
Therefore the Placing is conditional, inter alia, on the passing of the necessary resolutions at the annual general meeting of the Company to be held at the offices of Grant Thornton UK LLP, 30 Finsbury Square, London EC2P 2YU at 11.00 a.m. on November 26, 2008 and is expected to be completed at 8.00 a.m. on November 27, 2008 on admission of the Placing Shares to trading on AIM. Following the Placing, there will be 230,543,623 ordinary shares of 0.25p each in issue.
David Bramhill, Managing Director, commented, "Our continuing institutional support led to the Placing being oversubscribed even in current market conditions, demonstrating the robust nature of our projects.
"The funds raised through the Placing will principally be applied to continue the aggressive development of the Jolly Ranch Group project where we have enjoyed 100% drilling success to date. Together with our operator, Running Foxes, we intend to grow production levels substantially over the next few months.
"We now have interests in six development and production projects, including the Jolly Ranch Group where results have demonstrated the potential to transform the value of Nighthawk. We intend to manage our development portfolio proactively in order to maintain the pace of the development of our key projects."