CALGARY, May 31 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") is pleased to provide an operational update on recent drilling activity in western Saskatchewan.
At Seagram Lake, the Corporation acquired one (0.5 net) section of land at crown land sales during the first quarter of 2011, and on May 5, 2011 entered into a strategic farm-in agreement on twelve (6.0 net) sections of land ("Farm-in Lands"). A vertical test well (0.5 net) on the Farm-in Lands, located at 05-33-42-23W3, was spudded on May 8, 2011. The vertical test well encountered net pay in the Leduc formation and was kicked off horizontally. Two horizontal legs were drilled from the vertical test well thereby earning Hawk eleven (5.5 net) sections of the Farm-in Lands. This dual-leg horizontal well (0.5 net) is currently being completed and evaluated.
Also at Seagram Lake, Hawk has drilled one (0.5 net) dual-leg horizontal well at 5-32-42-24W3 and is currently drilling two (1.0 net) additional dual-leg horizontal wells at 8-33-42-24W3 and 16-28-42-24W3. These wells are expected to be completed during June and expected to be placed on production by the middle of July 2011.
During the first quarter of 2011, the Corporation drilled one (1.0 net) vertical oil well in the Edam area of western Saskatchewan. The well was drilled in late March of 2011, prior to spring break up, and is currently awaiting completion. Hawk has also recently drilled two (1.2 net) vertical oil wells in the Edam and Silverdale areas of western Saskatchewan. At Edam, Hawk drilled one (1.0 net) vertical oil well at 8-26-49-20W3 which encountered 7 meters of net pay in the Waseca formation. The well has been cased and the Corporation is planning on drilling a follow up location in the third quarter of 2011. At Silverdale, the Corporation drilled and cased one (0.2 net) vertical oil well at 5-23-48-28W3 offsetting a producing well at 12-23-48-28W3 which Hawk drilled in July 2010. Hawk is currently shooting three lines of two dimensional seismic in this area to further delineate additional wells on its lands. All three (2.2 net) vertical wells drilled in 2011 are expected to be completed in early June 2011 and on production prior to the end of the second quarter.
An updated corporate presentation is now available for viewing on the Corporation's website at www.hawkexploration.ca under Investor Information - Presentation.
Hawk's annual general meeting of shareholders will be held on Tuesday, June 21, 2011 at 3:00 pm in the R.G. Black Boardroom at the offices of McCarthy Tetrault LLP, Suite 3300, 421-7th Avenue SW, Calgary, AB.
The Corporation's financial statements for the first quarter of 2011, prepared in accordance with International Financial Reporting Standards ("IFRS"), have been substantially completed, except for one technical IFRS transitional adjustment that Hawk is working with its auditors to finalize. The financial statements and other filings related to the first quarter of 2011 are expected to be finalized and released later in June 2011.
Hawk is an emerging exploration 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.
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; planned development of the Corporation's oil and natural gas properties; the expected timing of the planned completion activities and related expected production; and the timing of the release of the 2011 first quarter financial statements.
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).
Statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future. Readers are cautioned that the foregoing lists of factors are not exhaustive. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Except as required under applicable securities laws, Hawk does not undertake any obligation to publicly update or revise any forward-looking statements.
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: Steve Fitzmaurice, President, CEO and Chairman, Tel: (403) 264-0191 Ext 225, Email: email@example.com; Dennis Jamieson, Chief Financial Officer, Tel: (403) 264-0191 Ext 234, Email: firstname.lastname@example.org