Nighthawk Energy has announced the sale of the Company's 50% interest in the Centurion project to Osceola Hydrocarbons Limited (Osceola) for a total consideration of US$5 million in cash. In addition, Nighthawk will be paid an annual royalty equal to 5% of the gross oil and gas revenues from the Centurion project received by Osceola.

The Centurion project is located in Sumner County, Kansas and covers approximately 15,000 acres.

Development at Centurion has been relatively restrained due to Nighthawk's focus being directed at Jolly Ranch and the Waterflood projects.

Three wells have been drilled and reported upon.

The Franklin 13-6 well reached a total depth of 3,904 feet into the Arbuckle formation and encountered excellent live oil shows. The well has subsequently been on controlled oil production for six months and product is being sold.

The Atoka-Nighthawk 13-11 and 12-29 wells have both been completed as future gas producers. A four well drilling program is scheduled for the near future.

Tags: Nighthawk Energy plc