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Nighthawk holds an 80% interest in the Devon Oilfield and a 50% interest in the Buchanan, Worden and Xenia sections of Revere. Running Foxes, the operator, holds the remaining interests.

The project is located within the Cherokee Basin, a prolific shallow oil and gas producing area from Pennsylvanian, Mississippian and Ordovician reservoirs. The Bartlesville and McClouth formations at less than 800 feet are the primary targets.

The shallow reservoir depths ranging from 350 to 800 feet result in a very low drilling cost per well of approximately US$50,000 to completion. Therefore a large number of wells can be drilled to thoroughly define the geology of the project and efficiently drain the reservoirs.

Given the low reservoir pressure and lack of presence of solution gas, there is little natural energy to help produce the oil naturally from the reservoir. Water injection is being used to displace oil to the production wells. This is a straightforward process that has been successfully applied for decades on similar fields within the US and elsewhere in the world. Typical recovery rates in this type of waterflood project would be expected to be in the range of 15-25% with careful design and waterflood implementation.

Water injection has commenced in various sections of the Revere project with Devon being the most advanced area where the effects of waterflooding are beginning to be observed. Once the production response from the water injection becomes apparent at the production wells, a forecast of field production can be estimated and reserves assigned to the project. Scoping simulation runs completed by Oilfield Production Consultants (“OPC”), independent consultants, suggest that oil production rates of 5-20 barrels of oil a day are possible from each production well. Primary production of oil before the full impact of water injection is a positive sign for the effective drilling of the wells and the reservoir potential for producing hydrocarbons. Continuing core analysis indicates excellent porosity and permeability.

Significant infrastructure is already in place. Water injection plants are being installed at numerous locations within the project area, several oil storage sites constructed and surface flowlines put in place to transport product.

Revere continues to be rapidly progressed with 140 wells on 10 acre spacings on primary production, 65 wells awaiting completion for production, 38 water injection wells at various stages of injection, one salt water disposal well active and a further 99 wells permitted. In total up to 200 new wells are planned to be drilled on the project, including those currently permitted.

Gross primary production from Revere is currently in excess of 150 barrels of oil equivalent per day. As the waterflood injection takes effect at various sections, new production wells are completed and put on stream, this figure is expected to increase dramatically.

Product from the Devon and Buchanan sections of Revere is being sold. Oil is trucked to a nearby processing facility and gas is being sold via a third party pipeline.

A 12 kilometre gas pipeline linked to the Bourbon County pipeline, in which Nighthawk holds a 50% interest, has recently been constructed to transport product from the Xenia section of Revere, where several recently drilled wells have been completed for production from the Bartlesville sandstones. Secondary targets at Xenia are the Riverton coal and Excello Shale, which are significant gas producing zones

on adjacent acreage.

Initial gas production from the Xenia section is expected to be approxiamatley 500,000 cubic feet per day gross.

OPC have recently completed studies of the Devon and Buchanan and Worden sections of Revere. These studies included an estimation of the Stock Tank Oil Originally in Place (“STOOIP”). An evaluation of Xenia is underway.

A detailed 3D geological model using Schlumberger’s Petrel software was built of the main study areas where most of the wells have been drilled to date and have seen the most development activity. Using the available well, log and core data and geological model the STOOIP was estimated deterministically. In addition, Monte Carlo calculations of the oil in place were made in respect of the study areas using the range of  porosity,

oil saturation and gross rock volume parameters derived from the 3D Petrel modelling.

Following the evaluation and study, the P50 or most likely STOOIP figure was calculated to be 210.51 million barrels (gross), a figure that is expected to rise significantly on further development of the outlying acreage.

Revere is a low cost - high upside development project which is expected to become a significant contributor in respect of both production and the addition of further oil and gas reserves/resources, particularly following the planned major expansion during the remainder of 2009 and beyond.

Geology

The Revere project is located within the Cherokee Basin, Devon and Xenia to the west in Kansas and Buchanan and Worden to the east in Missouri. Production is from Pennsylvanian, Mississippian and Ordovician reservoirs.

Revere Location

Revere is a major waterflood project covering in excess of 40,000 acres and is the product of the consolidation of the Devon Oilfield, Buchanan and Worden and Xenia projects, all located on and near the State Border of Kansas and Missouri.

REVERE

P10

P50

P90

Gross STOOIP, MMstb

(Study Area 1,859 acres)

34.59

48.52

64.26

Gross STOOIP, MMstb Additional Acreage

(30,385 acres)

30.25

161.99

412.5

The oldest strata are the Cambrian sandstones and carbonates which lie directly on the Pre-Cambrian rocks. Overlying the Cambrian sediments are the Arbuckle Group of Ordovician age which consist of interbedded dolomites and limestones with minor shales. Overlying the Arbuckle Group are the Mississippian limestones which can be a significant hydrocarbon producer. The Cherokee Group of Pennsylvanian age overlies the Mississippian strata and is composed of predominantly shales and sandstones with minor limestones and coals. The Cherokee Group also includes a deltaic sequence that extends across all of the Cherokee Basin. Several sandstones are found within the group, however the Bartlesville Sandstone reservoir has produced the majority of hydrocarbons in the basin.

The eastern side of the Cherokee Basin is estimated to contain between 1.8 and 8 billion barrels of oil in place based on published reports from the United States Geological Survey and the Missouri Department of Natural Resources.