Nighthawk Energy completes acquisition of further 25 per cent stake in Jolly Ranch
Nighthawk Energy (LON:HAWK, OTCQX:NHEGY) today has completed the acquisition of a further 25 per cent of Jolly Ranch in Colorado and becomes operator of the project.
The deal with Running Foxes means Nighthawk now has a 75 per cent stake in the Colorado shale oil play.
The company also confirmed that chief executive and director Tim Heeley will now step down to work with the team to manage the operational side of the project.
Stephen Gutteridge, previously the non- executive chairman, has become executive chairman, it added.
Last Friday, Nighthawk said it had closed the open offer that was part of a £18.15 million fundraising announced at the end of December last year.
The group is using the money to acquire a further 25 per cent of the Jolly Ranch project from partner Running Foxes for US$12.5 million and to finance this year's work programme.
For the stake, a total of US$8.5 million will be paid in cash, while Running Foxes will receive US$4 million-worth of shares.
The open offer for 74,003,918 new shares at 2.5 pence each to raise £1.85 million before costs was taken up by 44.5 percent of qualifying shareholders.
Nighthawk's operatorship of the project will allow it to control the speed and method of development at Jolly Ranch going forward.
It has said a number of lessons have been learnt from the progress to date "which will be applied in seeking to improve the performance of the asset from existing and new well bores".
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