/THIS DOCUMENT IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./
CALGARY, Nov. 26 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") announces its results for the interim period ended September 30, 2009. Selected financial information for the three months ended September 30, 2009 and the period from February 2, 2009 to September 30, 2009 is provided as follows:
Three months ended February 2, 2009 to
September 30, 2009 September 30, 2009
Petroleum and natural gas revenue $42,677 $42,677
Net loss and comprehensive loss $44,623 $159,421
Net loss per share $0.00 $0.02
Capital expenditures $1,975,781 $2,201,106
Property acquisition $12,522,658 $12,522,658
Working capital surplus,
end of period $9,286,211 $9,286,211
Total assets, end of period $25,751,301 $25,751,301
Common Shares outstanding,
end of period:
Class A Shares 21,980,953 21,980,953
Class B Shares 1,080,000 1,080,000
Options to acquire Class A Shares 1,010,000 1,010,000
Weighted average shares outstanding on
combined basis, basic and diluted(1) 15,906,004 9,472,130
(1) Class B Shares were converted to Class A Shares based on the
September 30, 2009 closing price for the Class A Shares of $1.75 per
Highlights for the quarter ended September 30, 2009 were as follows:
- Completed an acquisition on September 30, 2009 of approximately
350 boe/d of medium crude oil and solution gas in the Provost area of
Alberta for cash consideration of $12.5 million.
- Closed a bought deal private placement of 12,380,953 Class A Shares
at $1.05 per Share for gross proceeds of $13 million.
- Drilled three (2.7 net) wells resulting in three (2.7) crude oil
wells placed on production in September 2009.
- Added significantly to the Corporation land base by acquiring
approximately 7,200 net acres of land at Alberta crown land sales,
mainly in Hawk's core area at Provost.
- Shot and acquired 78 kilometers ("kms") of two dimensional seismic
data and 50 square kms of three dimensional seismic data to evaluate
Hawk's land and drive the upcoming drilling program.
- Subsequent to September 30, 2009, established a $6 million line of
credit with a Canadian bank, adding to the Corporation's financial
Strategy and Update
Hawk's corporate strategy is to grow its production base, cash flow and cash flow per share in a profitable manner and intends to accomplish this by targeting high netback oil production in low-cost areas. These areas are characterized by year round access, available infrastructure, moderate drilling depths, lower land costs, and significant in-house technical expertise.
Based on the current commodity price environment and ongoing depressed natural gas prices, Hawk intends to continue to focus its capital spending on oil prospects. The Corporation has assembled a number of oil prospects through crown land sales, lands available under the Trihawk farm-in agreement and through lands obtained in the Provost acquisition. Current production is approximately 375 Boe/d comprised of 310 bbl/d of crude oil and 400 Mcf/d of solution gas.
The Corporation maintains a strong financial position with a working capital surplus of $9.3 million at September 30, 2009 and added to its financial flexibility subsequent to the third quarter with a $6 million line of credit, which remains undrawn. Hawk is currently in the process of surveying and licensing seven (6.6 net) wells which are expected to be drilled in December 2009 and January 2010. The Corporation is planning an active capital program for 2010. Hawk's board of directors has approved a capital budget of $15 million for 2010 which will facilitate the drilling of up to 25 net wells.
The unaudited financial statements and management's discussion and analysis for the interim period ended September 30, 2009 have been filed on SEDAR and are available for viewing at www.sedar.com or on the Corporation's website at www.hawkexploration.ca.
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 Corporation 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 Corporation'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 Corporation 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.
SOURCE Hawk Exploration Ltd.
For further information: For further information: Steve Fitzmaurice, President, CEO and Chairman, Tel: (403) 264-0191 Ext 225, Email: firstname.lastname@example.org; Dennis Jamieson, Chief Financial Officer, Tel: (403) 264-0191 Ext 234, Email: email@example.com