Nighthawk Energy reaches settlement with Cascade Petroleum

16th Dec 2016 09:06

(ShareCast News) - US-focused oil development and production company Nighthawk Energy announced the execution of a settlement agreement regarding the Monarch Joint Development Agreement on Friday.The AIM-traded firm said it was entering into the settlement agreement with Cascade Petroleum, under the same terms which were set out in its interim results on 30 September.Those terms included a payment to Cascade of $0.5m, the completion by Nighthawk of an up-hole zone in the Monarch 10-15 well at an estimated cost of $75,000, and the assigning by Nighthawk of an increased revenue share to Cascade of the well, with a 2% net overriding revenue interest in the land section surrounding the wellbore.In exchange for those considerations, Nighthawk would receive from Cascade an assignment of their working interest in all remaining acreage in the joint development agreement."The $0.5m cash payment to Cascade was made concurrently with the execution of the agreement," Nighthawk's board said in a statement."As a result of the settlement, the required 2016 drilling commitment of the company in the JDA is relieved."No further drilling commitments exist under the JDA."The board said it does not believe the settlement will have a material impact on its financial results going forward.