A Bristol-based hydrocarbon specialist is days away from raising a seven-figure sum in a bid to continue the development of its flagship project.

Nighthawk Energy Plc, which focuses its operations on hydrocarbon production and development ventures in the US, is to raise £5 million, before expenses, through an institutional placing on AIM. 

The proceeds will be used to develop the company’s flagship project, the Jolly Ranch Group in Colorado. 

Nighthawk is to place 25 million new ordinary shares at 20p each, with Hanson Westhouse as its broker. The placing is expected to complete on 27 November, if shareholder approval is granted. 

Following the move, Nighthawk will have more than 230.5 million ordinary shares of 0.25p each in issue.   

“Our continuing institutional support led to the placing being oversubscribed even in current market conditions, demonstrating the robust nature of our projects,” Nighthawk managing director David Bramhill said. “The funds raised will principally be applied to continue the aggressive development of the Jolly Ranch project where we have enjoyed 100 per cent drilling success to date.” 

Nighthawk, which joined AIM in March 2007, has interests in seven projects in the US, all of which are operated by Running Foxes Petroleum, its co-shareholder in each project. Of these operations, all but one are in production or at the development stage.