Hawk announces granting of incentive stock options, provides operational update and updated corporate presentation
CALGARY, Jan. 22, 2014 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") announces that it has granted a total of 1,136,500 options to directors, officers, employees and consultants, of which 975,000 were granted to directors and executive officers. Each option entitles the holder the right to acquire one Class A Share of the Corporation at an exercise price of $0.42 per Class A Share and expires ten years from the date of issue. The options vest equally over a three year period on the first, second and third anniversary from the date of grant. There are now options outstanding to purchase a total of 3,421,500 Class A Shares of the Corporation, or approximately 9.6% of the Corporation's issued and outstanding Class A and Class B Shares.
Hawk achieved an exit production rate, being the average sales volume for the month of December 2013, of approximately 750 boe/d while fourth quarter 2013 production averaged approximately 680 boe/d, with an oil weighting of 98 percent for both periods. The Corporation has, so far in 2014, drilled one (1.0 net) vertical well in the Redwater area of Alberta which has been cased and is awaiting completion. Hawk expects to drill an additional three to four (3.0 to 4.0 net) vertical wells targeting heavy oil in western Saskatchewan in the first quarter of 2014.
An updated presentation has been posted on the Corporation's website at www.hawkexploration.ca. The corporate presentation can be located under the Investor Information - Presentation page of the website.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute forward-looking statements. All forward-looking statements are based on the Corporation's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Hawk believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
In particular, but without limiting the forgoing, this press release contains forward-looking statements pertaining to the following: the performance characteristics of Hawk's oil and natural gas properties; business strategies and plans; projections of market prices and cost; supply and demand for oil and natural gas; planned development of the Corporation's oil and natural gas properties; the timing of and nature of capital expenditure program for 2014; and the expected sources of funding for the 2014 capital expenditure program.
The material factors and assumptions used to develop these forward looking statements include, but are not limited to: the ability of the Corporation to engage drilling contractors, to obtain and transport equipment, services, supplies and personnel in a timely manner and at an acceptable cost to carry out its activities and plans; the ability of the Corporation to market its oil and natural gas and to transport its oil and natural gas to market; the timely receipt of regulatory approvals and the terms and conditions of such approval; the ability of the Corporation to obtain drilling success consistent with expectations; and the ability of the Corporation to obtain capital to finance its exploration, development and operations.
Actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors including, without limitation: volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions and exploration and development programs; geological, technical, drilling and processing problems; changes in tax laws and incentive programs relating to the oil and natural gas industry; failure to realize the anticipated benefits of acquisitions; general business and market conditions; and certain other risks detailed from time to time in Hawk's public disclosure documents (including, without limitation, the other factors discussed under "Risk Factors" in the Corporation's most recently filed Annual Information Form).
Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.
SOURCE Hawk Exploration Ltd.For further information:
President, CEO and Chairman
Tel: (403) 264-0191 Ext 225
Chief Financial Officer
Tel: (403) 264-0191 Ext 234