Hawk announces completion of stategic acquisition and issuance of Class A
shares on deemed exercise of subscription receipts

    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
    

CALGARY, Oct. 1 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") is pleased to announce that it has successfully completed its previously announced acquisition of certain producing properties in the Provost area of Alberta (the "Assets") for cash consideration of $13 million before closing adjustments and related costs (the "Acquisition").

With the completion of the Acquisition, 12,380,953 subscription receipts issued pursuant to a previously completed private placement were deemed to be exercised for an aggregate of 12,380,953 Class A shares of Hawk for no additional consideration or action on the part of the holder.

The Class A Shares will be subject to a four month hold period under applicable Canadian securities laws.

In connection with the Acquisition, the Corporation had GLJ Petroleum Consultants Ltd. ("GLJ") prepare an independent engineering report in accordance with National Instrument 51-101 with an effective date of August 1, 2009 (the "GLJ Report"). The tables below are a summary of the oil, NGL and natural gas reserves attributable to the Assets and the net present value of future net revenue attributable to such reserves as evaluated in the GLJ Report.

The net present value of future net revenue attributable to reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures and well abandonment costs for only those wells assigned reserves by GLJ. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to reserves estimated by GLJ represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of oil, NGL and natural gas reserves provided herein are estimates only. Actual reserves may be greater than or less than the estimates provided herein.

The GLJ Report is based on certain factual data supplied by Hawk and Hawk's opinion of reasonable practice in the industry. The extent and character of ownership and all factual data pertaining to petroleum properties and contracts (except for certain information residing in the public domain) were supplied by Hawk to GLJ. GLJ accepted this data as presented and neither title searches nor field inspections were conducted.

    
             Summary of Oil and Gas Reserves as of August 1, 2009

                                         Reserves Summary
    -------------------------------------------------------------------------
                                                               Natural Gas
                         Heavy Oil         Natural Gas           Liquids
                    -----------------   -----------------   -----------------
    Reserves         Gross       Net     Gross       Net     Gross       Net
    Category         (Mbbl)    (Mbbl)    (MMcf)    (MMcf)    (Mbbl)    (Mbbl)
    -------------------------------------------------------------------------
    Proved
      Developed
      Producing        373       311       251       208         8         6
      Undeveloped       94        75        70        56         2         2
    -------------------------------------------------------------------------
    Total Proved       467       386       321       265        10         8
    Probable           237       193       170       138         5         4
    -------------------------------------------------------------------------
    Total Proved
     plus Probable     704       579       491       403        15        12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ---------------------------------
                        Total Oil
                        Equivalent
                    -----------------
    Reserves         Gross       Net
    Category         (Mbbl)    (Mbbl)
    ---------------------------------
    Proved
      Developed
      Producing        423       352
      Undeveloped      108        86
    ---------------------------------
    Total Proved       530       438
    Probable           271       220
    ---------------------------------
    Total Proved
     plus Probable     801       658
    ---------------------------------
    ---------------------------------


               Net Present Value Summary as of August 1, 2009

                                  Net Present Value of Future Net Revenue
                                 Before Income Taxes Discounted At (%/year)
                             ------------------------------------------------
    Reserves                      0%        5%       10%       15%       20%
    Category                      M$        M$        M$        M$        M$
    -------------------------------------------------------------------------
    Proved
      Developed
      Producing               14,462    12,713    11,353    10,271     9,393
      Undeveloped              3,684     3,032     2,547     2,177     1,888
    -------------------------------------------------------------------------
    Total Proved              18,146    15,745    13,900    12,448    11,281
    Probable                   9,841     7,398     5,763     4,624     3,801
    -------------------------------------------------------------------------
    Total Proved
     plus Probable            27,987    23,143    19,663    17,072    15,082
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                              Unit Value Before
                                 Income Tax
                                Discounted at
                                  10%/year
                             ------------------
    Reserves
    Category                   $/boe    $/Mcfe
    -------------------------------------------
    Proved
      Developed
      Producing                32.26      5.38
      Undeveloped              29.56      4.93
    -------------------------------------------
    Total Proved               31.73      5.29
    Probable                   26.23      4.37
    -------------------------------------------
    Total Proved
     plus Probable             29.89      4.98
    -------------------------------------------
    -------------------------------------------


         Total Future Net Revenue (Undiscounted) as of August 1, 2009


                                                                  Future Net
                                                  Capital            Revenue
                                        Operat-  Develop-  Abandon-   Before
                                           ing      ment      ment    Income
    Reserves       Revenue  Royalties     Cost     Costs     Costs       Tax
    Category            M$        M$        M$        M$        M$        M$
    -------------------------------------------------------------------------

    Total Proved    36,233     6,914    10,440       408       325    18,146
    Total Proved
     plus Probable  56,508    11,098    16,221       816       387    27,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

            Summary of Forecast Pricing and Inflation Assumptions

    The GLJ Report used the following prices, exchange rates, and inflation
rate assumptions as of July 1, 2009:

                    WTI   Edmonton 40   Lloyd       AECO -   Infla-
                  Cushing  degree API  Blend at     NIT       tion   Exchange
                 Oklahoma  Crude Oil   Hardisty     Spot      Rate       Rate
    Year         ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/mmbtu)   %  ($US/$Cdn)
    -------------------------------------------------------------------------
    Balance
    2009             70.00     79.43     67.91      4.54       1.5      0.87
    2010             72.00     81.72     68.65      6.32       2.0      0.87
    2011             75.00     84.20     69.47      7.16       2.0      0.88
    2012             80.00     87.89     70.75      7.56       2.0      0.90
    2013             85.00     91.41     71.76      7.93       2.0      0.92
    2014             93.85     97.84     76.81      8.47       2.0      0.95
    2015             95.73     99.82     78.36      8.75       2.0      0.95
    2016             97.64    101.83     79.94      8.94       2.0      0.95
    2017             99.59    103.89     81.55      9.13       2.0      0.95
    2018            101.59    105.99     83.20      9.33       2.0      0.95
    Escalated at 2.0 % per year thereafter.
    

Hawk is a newly formed company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta. The Class A Shares and Class B Shares of Hawk trade on the TSX Venture Exchange under the trading symbols of HWK.A and HWK.B, respectively.

    
    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.
    

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.

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Subscription Receipts offered and the underlying Class A Shares have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

SOURCE Hawk Exploration Ltd.

For further information: For further information: Steve Fitzmaurice, President, CEO and Chairman, Tel: (403) 264-0191 Ext 225, Email: steve@hawkexploration.ca; Dennis Jamieson, Chief Financial Officer, Tel: (403) 264-0191 Ext 234, Email: dennis@hawkexploration.ca

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