Nighthawk Energy has successfully negotiated a new lending deal with the Commonwealth Bank of Australia.
The US focused oil development and production company has agreed an additional $3million be added to its $23million principal amount to fund its Water Flood project.
Rick McCullough, chairman of Nighthawk, said: “I am pleased to announce this new agreement with our banking partner, CBA. This is the culmination of much work by a number of parties and I am extremely pleased with the support we have received from everyone involved.
“Along with the with the recent completion of regulatory approval of the Company’s Arikaree Creek water flood pilot project, this concludes another major step in the realization of the benefits of the water flood pilot project that we plan to implement later this year. As previously stated, we expect that project to drive both production and reserve additions which will be beneficial for all stakeholders of Nighthawk.”
Interest will be at Libor plus 6% and payable monthly in cash.
Nighthawk is currently negotiating the deferral of the interest and royalty payments with existing loan note holders.
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