CALGARY, May 5 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") along with its 50 percent operating partner have entered into a strategic farm-in agreement (the "Agreement") with a public oil and gas company (the "Farmor") in its core area of Seagram Lake in western Saskatchewan. The Agreement allows Hawk to earn an interest in up to twelve gross (6 - net) sections of land prospective for Duperow (Leduc equivalent) heavy oil immediately adjacent to Hawk's existing crown acreage in the area. With this Agreement, Hawk currently owns or has access to 24 (12 - net) sections of land at Seagram Lake.
Under the terms of the Agreement, Hawk plans to drill one (0.5 net) vertical test well on the farm-in lands prior to June 30, 2011 to evaluate the Duperow formation for potential horizontal development. Based on the results of the vertical test well and at the election of Hawk and its partner, a horizontal or dual-leg horizontal test well could be kicked off from the vertical test well. Hawk and its partner can earn two (1 -net) sections for drilling a vertical test well, four (2 - net) sections for a single leg horizontal test well and eleven (5.5 net) sections of land for a dual-leg horizontal test well in exchange for 7.5% non-convertible gross overriding royalty to the Farmor. All of the farm-in lands were acquired at crown land sales and are eligible for existing Saskatchewan crown royalty incentive programs.
The Corporation has also commenced drilling operations at its first dual-leg horizontal (0.5 - net) well at Seagram Lake adjacent to Hawk's existing producing Duperow well.
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: planned drilling of its test well on the farm-in lands; and the potential earning of lands under the farm-in agreement.
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).
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