Nighthawk provides an update on the marketing process being undertaken by Macquarie Tristone (Houston) ('Macquarie') to seek a purchaser for part of the working interest in the Jolly Ranch Project in Colorado covering 406,400 gross acres (approximately 315,550 acres net).

As stated in the announcement dated 23 June 2010, Macquarie has prepared and issued an Overview Memorandum setting out details of the Jolly Ranch Group assets. The engagement of Macquarie is an open ended agreement and as previously stated the dates referred to in the Overview Memorandum are non-binding and subject to change.

During the initial stages of marketing, strong interest has been received from a number of significant domestic US and international firms. To date, seven of these companies have signed confidentiality agreements in order to evaluate information held in the Jolly Ranch project Data Room.

Due to continuing interest, it has been agreed with Macquarie that the divestment process timetable will be extended to allow for as many companies as possible to evaluate the project as development of the Jolly Ranch project continues. Completion activity and data evaluation is continuing on Jolly Ranch and a new drilling programme is planned in parallel with the divestment process.

Revenues from Jolly Ranch continue to increase and are at a current all time high, the effects which will be reflected in the 30 June 2010 year end accounts to be published in Q4 2010.

Whilst the initial indications of interest from industry participants are clearly encouraging, there can be no assurance that the process will result in the completion of a transaction.

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