Drilling and Production Update

6 December 2013

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Drilling and Production Update

Big Sky 12-11 and John Craig 1-2 wells successfully test commercial oil flows

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), announces an update on drilling and production at its 100% controlled and operated Smoky Hill and Jolly Ranch projects in the Denver-Julesburg Basin, Colorado.

Highlights

· Big Sky 12-11 well at Arikaree Creek successfully tested commercial oil flows from the Mississippian formation

· John Craig 1-2 well successfully tested commercial oil flows from the Pennsylvanian formation

· Both wells are currently being completed for production to commence within the next few days

· Big Sky 14-11 at Arikaree Creek has been drilled to target depth of 8,400 feet and extensive coring and logging has been completed

· Drilling program continues with Telluride 13-2 well at Arikaree Creek, with further wells planned at Arikaree Creek and in the immediate vicinity of John Craig 1-2 as part of an extended new drilling plan

· Increased production from Silverton 16-10 and Snowbird 9-15 wells after treatment of the producing pay-zone

· Average gross oil production from all wells in October and November 2013 of 1,471 barrels per day ("bbls/day") and 1,497 bbls/day respectively

Arikaree Creek - Big Sky 12-11 Well

The Big Sky 12-11 well was drilled to a depth of 8,370 feet and is located to the east of the Silverton 16-10 and Snowbird 9-15 producing wells. The well was logged and a small core sample taken. Multiple stacked potential pay-zones in both the Pennsylvanian and Mississippian age formations were identified on the logs.

The well has been perforated in the same Mississippian pay-zone as the currently producing Silverton 16-10 and Snowbird 9-15 wells and testing has confirmed the commercial potential of the well. Work is currently underway to bring Big Sky 12-11 into production through the facilities at the Big Sky 4-11 well. Production is expected to commence within the next few days.

The completion process was extended to include injectivity tests of lower Mississippian intervals and pressure build-up tests of the potential oil producing zones. This will provide valuable information for the future development of Arikaree Creek.

John Craig 1-2 Well

The John Craig 1-2 well was drilled to a depth of 8,450 feet. The well was logged and over forty sidewall cores taken. A number of potential pay-zones in the Pennsylvanian age formations were identified. Following initial perforation, testing has confirmed the commercial potential of the John Craig 1-2 and the well will be completed for production within the next few days through the existing facilities at the John Craig 6-2 location.

Arikaree Creek - Big Sky 14-11 Well

The Big Sky 14-11 well spudded on 14 November 2013 and has been drilled to target depth of 8,400 feet. The well is located close to, and south of, Big Sky 12-11. Extensive coring and logging has been successfully completed and the well will be perforated and tested within the next two weeks.

Further Development Drilling Plans

The drilling rig is currently drilling the Telluride 13-2 well at Arikaree Creek, which is north-east of the Steamboat Hansen 8-10 and Taos 1-10 producing wells. The well spudded on 1 December 2013.

The results from the John Craig 1-2 well have confirmed the potential for additional production in the John Craig area of Nighthawk's acreage. Nighthawk's 2014 drilling program will now include plans for additional wells in this area together with further development wells at Arikaree Creek and new exploration activity across Nighthawk's acreage. This represents a potentially significant expansion of the Board's plans for 2014 and in order to preserve financial flexibility the Board has agreed revised repayment terms for Nighthawk's US$12 million loan facility with Johan Claesson and companies associated with him (the "Lender") which was initially entered into in July 2013 (the "Loan").

The Loan's original repayment profile was six monthly repayments of US$1 million followed by a residual payment of US$6 million. To date US$3 million of the Loan has been repaid and the revised terms of the Loan are for the balance of US$9 million to be made in three repayments of US$3 million payable on or before 30 April 2014; 31 July 2014 and 31 October 2014.

In return for the revised payment profile Nighthawk has agreed that the Lender will receive a royalty payment equating to 1.0% of Nighthawk's net revenue interest ("NRI")* on the six new well bores being or to be drilled by the Company commencing with the Big Sky 12-11. The NRI will be paid to the Lender quarterly in arrears.

Johan Claesson is a substantial shareholder of the Company and therefore the revision to the repayment schedule is a related party transaction under the AIM Rules for Companies. The Nighthawk Board considers, having consulted with Westhouse Securities Limited, the Company's Nominated Adviser, that the terms of the Transaction are fair and reasonable in so far as the Company's shareholders are concerned.

Production

Gross Oil Production October and November 2013

Following planned maintenance work in September, all five producing wells at Arikaree Creek were in production at the start of October. Both October and November production figures were affected by downtime as the Silverton 16-10 and Snowbird 9-15 wells were shut-in for treatment and cleansing of the producing pay-zone.

The Silverton 16-10 well was taken off-line in mid-October and resumed production on 4 November 2013. The Snowbird 9-15 was off-line for nine days in November. The response of both wells to the treatment has been encouraging with combined production from the Silverton 16-10 and Snowbird 9-15 wells averaging over 360 bbls/day over the last eight days of November.

The Board anticipates that December production will benefit from the increased production rate of these two wells and new production from the Big Sky 12-11 and John Craig 1-2 wells, although there may be occasional disruptions due to the current extremely cold weather in Colorado.

Nighthawk's realized sales price for October remained over $90/bbl. Following the fall in US oil prices generally over the past few weeks, November prices were lower at just under $85/bbl, but Nighthawk has short-term hedging in place that protects around 40% of current net production from falls below $87/bbl.

Stephen Gutteridge, Chairman of Nighthawk, commented:

"We have long been aware that the John Craig area has significant potential for oil production and a number of wells in the area have confirmed that. We are very encouraged by the initial results from the John Craig 1-2 well and confident enough to commit further funds for drilling additional wells in this area in 2014. With the Big Sky 12-11 well confirming continued success at Arikaree Creek, 20 miles north of John Craig, we now plan to accelerate and extend our drilling plans and the revised agreement with the Lender will facilitate those plans."

Chuck Wilson, Chief Operating Officer of Nighthawk, who has over 33 years of experience in the oil and gas industry and meets the criteria of qualified persons under the AIM guidance note for mining and oil and gas companies, has reviewed and approved the technical information contained in this announcement.

- Ends-

Definitions

*Net revenue interest (NRI) - Nighthawk's share of oil, gas, and associated hydrocarbons produced, saved, and marketed, after satisfaction of all royalties, overriding royalties, or other similar burdens on or measured by production of oil, gas, and associated hydrocarbons

Enquiries: