US-focused oil company Nighthawk has revealed it has breached covenants under the company’s reserve loan with the Commonwealth Bank of Australia.
Nighthawk said it is working together with the bank to modify or adjust the covenants under the RBL to provide for a long term solution that will allow ongoing compliance. It is expected that these modifications will be in place on or before December 22.
The company also revealed its gross daily production for November was 1,600 barrels or approximately 1,280 barrels per day net. Total year to date net production to November is 499,000 barrels or 1,492 per day.
Nighthawk’s 2016 water flood project continues to progress as planned. The formal hearing with the Colorado Oil and Gas Conservation Commission will take place on January 25.
Although the company cannot predict the outcome of the hearing, it expects the application for the water flood unit will be approved.