Nighthawk Energy plc Banking Agreement (8443J)
03 July 2017 - 4:00PM
UK Regulatory
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 +1 303 407 9600
Kurtis Hooley, Chief
Financial Officer +44 (0) 20 3582 1350
Stockdale Securities
Limited +44 (0) 20 7601 6100
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
AGRMMGGNGZLGNZZ
(END) Dow Jones Newswires
July 03, 2017 02:00 ET (06:00 GMT)
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Apr 2024 to May 2024
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From May 2023 to May 2024