Pre IPO price 4p
Opening price on debut 25p
Floatation price 46p to raise 14million to extend Jolly Ranch
Current fair value estimate 114p
Market cap 70.59 million.
Value of Cisco Springs investments 98 million.
Value of Vogel investments 75 million.
Desparado trucking now Nightfox 250,000 for a 50% stake with partner Running Foxes.
Centurion Project Kansas, 150,000 for a 50% stake.
Jolly Ranch Colorado, 40,000 acres cost 356,000 for a 50% stake.
Cash in bank 7.75 million.

As this EPIC opens on AIM today anything could happen. On the one hand you have traders trying to cash in a sixfold profit. You will also have a clambering of traders after shares because, firstly they could only get 75% of their allocation because of demand. Secondly at 25p this company is still way under valued.

cynic look at the admin expenses growth, they are very good at spending but no good at producing oil!

i'm sure you're right, but have banked my small but useful profit - i was short!

i'm sure you're right, but have banked my small but useful profit - i was short!

Sp is still heading down.

cashed in too early, but hey ho, it's money in the bank

bollocks! ..... very rare for me to whinge about cashing in prematurely, but sure did this time

12.5p now... this is a disaster

pain in the arse for me ..... should have stuck with my convictions (can't get rid of the GBH one!)

The problem is paper thin oil spread over a vast area, so you need loads of noddin' nelly's....just to get 20 barrels of oil up...some of them only bring 5 barrels per day up....plus a market cap of 50 million....for a few hundred barrels ?...

They haven't got much in terms of barrels really and winter is coming up which makes work more difficult now.

Bought in...hoping for a quick buck.....might be a little rebound coming.....oh dear....I feel like I have sinned here....

you will be sectioned along with MRSI, who has already bagged the best bunk in your padded cell

I shall put my head down in disgrace....just trying to make a quicko buck that's all....it's either that or street corners and high heels...

better chance of making money, especially if clubby's on the prowl

I might have to dress up some of those sheep again....

This might be close to the bottom....that's my reasoning and perhaps a little rebound to 15p could come along.....just a 40 million cap now......if I sense it has to tumble further..will bale out.....perhaps a little too impetous a trade on my behalf....

O/T

Worth a read, 4 page write up.

http://uk.reuters.com/article/idUKTRE6AL1RH20101122?pageNumber=1

.

Highlights

Nighthawk will focus on Jolly Ranch and exit all other current projects to ensure capital is targeted effectively to maximise upside for shareholder value
This strategy, together with a number of ongoing central cost reductions, will enable Nighthawk to lower the rate of cash burn significantly and to focus on asset value delivery
The Companys interest in the Revere waterflood projects will be assigned to Running Foxes Petroleum Inc., the operator, as of 1 January 2011 in return for a 5% overriding royalty and a 25% share of the final settlement of any future sale to a third party, if executed within two years of the assignment date
An exit strategy from the Cisco Springs project is being formulated and the market will be updated when appropriate
The Cliffs licences will be allowed to expire over the coming months and the Company will not be applying for the licences to be renewed
The exit of non-core assets will result in write downs to intangible and tangible assets of approximately US$65 million
Nighthawk will now focus on Jolly Ranch with a number of completions and recompletions on existing wells planned for the next four months
Schlumberger Data and Consulting Services (Schlumberger) in Denver is completing a detailed reservoir simulation model for the core Craig and Jolly drilling blocks which will be passed to Gaffney, Cline and Associates (GCA) in Houston to provide a reserves and resources report during Q1 2011
Longer-term, Nighthawk will seek to build additional value through acquiring interests in other assets offering further upside for shareholders


Strategic Review
In September, following a number of board and management changes including the appointment of a new Chief Executive, the Board initiated a strategic review with the aim of cutting costs and ensuring that the available resources are invested as effectively as possible to maximise returns. All the projects were evaluated on an expenditure versus earnings potential basis to assess what value could be delivered over a three year time frame.

Since inception, Nighthawk has invested approximately US$117 million in its oil and gas projects; however, to date only approximately one third of this has been invested in the Jolly Ranch project, its most important project. The Board believes that continuing to invest in all of the current projects is curtailing the delivery of shareholder value and that the funds available will be better utilised by focusing on Jolly Ranch.

A longer-term objective will be to identify and acquire additional assets to help internally fund the ongoing development at Jolly Ranch. Nighthawk is focused on maintaining and growing shareholder value and as such it is currently envisaged that these future projects will have near-term operational cashflow delivery and be most likely focused on low-risk conventional oil developments.

Revere

To date, approximately US$39 million has been invested by the Company in the Revere projects in Kansas and Missouri against a revenue contribution of just US$1.5 million, net to Nighthawk; this represents a revenue return on capital of approximately 4%, significantly below an acceptable level.

The purpose behind the investment in Revere was to have a project that could deliver near to medium term operational cash flow to help fund the development of Jolly Ranch. However, it is apparent that the waterflood process, the effect of which is difficult to predict, is not working as efficiently as had been hoped. The planned work programme for 2011 would have required a change in operational strategy and significant further capital investment from Nighthawk without any guarantee of future revenue growth. Furthermore, gas production has now been shut in across all Revere projects, including Xenia, due to the continuing and expected long term depressed prices for US natural gas.

The sale of Nighthawk's working interest in Revere has been considered by the Company. However, it was decided that the capital and time required to make the project a saleable proposition, plus the lack of prospective buyers in the region, would have meant a sale would not have been achievable within a reasonable timescale to meet shareholders' best interests.

Therefore the Board has decided to assign the Company's interests in the Revere projects to the operator, Running Foxes Petroleum Inc., with effect from 1 January 2011. Thereafter, Nighthawk will no longer have any future capital liability on the project. In return for the assignment, Nighthawk will receive a 5% over-riding royalty from production and 25% of any sale proceeds, within the next two years, if the operator sells any part of the property to a third party. Nighthawk has also retained an option to re-enter the assets at its own choosing for which Nighthawk would have to pay historic costs attributable from the reassignment date plus a 20% uplift.

Cisco Springs

Nighthawk has invested approximately US$25 million in the Cisco Springs project in Utah. Whilst the asset is producing both gas and oil, the gas production has been minimal for many months and the revenue from oil production is not sufficient to cover the ongoing costs on the licence.

A number of options are being actively considered regarding the Company's exit from Cisco Springs. It is currently envisaged that this could involve the sale of the whole project to a third party whose ultimate interest is access to the export infrastructure due to the continuing depressed North American natural gas prices. Any amount realised in a potential sale will be significantly below the amount invested to date and the Board intends to write down the value of the asset in the upcoming interim accounts. Whilst there can be no guarantee that a transaction will be completed, it is anticipated that Nighthawk will cease to be involved in the Cisco Springs project in the near future, at which point the Company will update the market.

Cliffs

The Company's activities at Cliffs have always been marginal to the other projects in the portfolio and it remains the only project on which drilling has not occurred. To date approximately US$2.3 million has been capitalised against the project. No further activity will be undertaken on the licences on the project and the leases will be allowed to lapse.

Jolly Ranch

Nighthawk is now able to focus capital on the lead project, Jolly Ranch, which the Board believes has the best potential to add scalable value to shareholders.

The current work programme, following a period of technical review, will include up to a dozen completions and recompletions over the coming months on the existing wells with the primary objective of better understanding the fraccing and completion process; the key to unlocking any shale resource play. A number of external consultants with experience of working on other shale oil projects have been brought in to advise on this process. Once a greater understanding of the completion techniques has been achieved, we will commence a further drilling programme of up to five wells at Jolly Ranch. We currently do not expect to commence this drilling until late Q1 2011.

As previously announced Macquarie Tristone was to continue the marketing process to attract a potential farm-in partner for a proportion of the Jolly Ranch project until the end of the year. However, the Board has decided to discontinue this process with immediate effect, so Nighthawk and Running Foxes are able to focus on the current work programme and further build up the body of knowledge on the Atoka and Cherokee shales.

In the meantime Schlumberger is concluding its reservoir simulation and production modelling of the Craig and Jolly Ranch areas of the project and will shortly pass the simulation model to GCA to undertake the first Reserves and Resources study on the project. Although at this stage of development the actual reserve figure is expected to be low given the early stage of development and the relatively small area under consideration, it will be the first step in helping define a firm value for reserves and contingent resources on the Jolly Ranch project.

Nighthawk currently anticipates that both pieces of work will be concluded in Q1 2011 and looks forward to updating the market with the conclusions from both the Schlumberger and GCA reports at that time.

The statement above erodes investors confidence. It shows its assets are non-profitable and they are now putting all their eggs in one basket.

Its dog eat dog out there