CALGARY, Oct. 10, 2012 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") is pleased to provide an operational update on its recent drilling activity.
Hawk recently completed and equipped its horizontal well at 09-10-46-23W3 at Carruthers in Western Saskatchewan. The well was placed on production in the middle of September and has produced heavy oil at an average rate of 60 bbl/d with a 20 percent water cut. The Corporation has recently submitted applications to drill an additional two horizontal wells in the north half of Section 10 at Carruthers which are expected to be drilled in either late 2012 or early in 2013. Hawk has a 100% working interest in the north half of Section 10 at Carruthers.
At Dankin, in Western Saskatchewan, Hawk recently drilled a vertical well testing the Basal Mannville Formation. The well did not encounter enough pay thickness to warrant the drilling of a horizontal well in its current location. Hawk is reassessing its three dimensional ("3D") seismic data to determine a better horizontal well path and expects to drill a horizontal well at Dankin in late 2012 or early in 2013. Hawk has a 100% working interest at Dankin.
At Seagram Lake in Western Saskatchewan, Hawk has recently commenced drilling a 50% working interest horizontal well targeting the Leduc (Duperow) Formation. In an effort to minimize water encroachment in this horizontal well, the Corporation expects to initially complete the well without acid stimulation.
Hawk's production for the third quarter of 2012, based on field estimates, was approximately 520 boe/d, weighted 95 percent to heavy oil. At the end of September 2012, Hawk had drawn $100,000 on it $12 million revolving line of credit. Total debt and working capital deficit at September 30, 2012 is estimated to be approximately $3.3 million.
For the fourth quarter of 2012, the Corporation plans to conduct two separate two dimensional seismic programs in Western Saskatchewan and one 3D seismic program at Silverdale, also in Western Saskatchewan, to delineate future vertical oil drilling opportunities. Hawk expects to drill one (1.0 net) vertical well targeting oil in the Sparky Formation in Western Saskatchewan in the fourth quarter. The Corporation also expects to drill one (1.0 net) horizontal well late in the fourth quarter of 2012 at either Carruthers or Dankin.
An updated corporate presentation will be available for viewing on the Corporation's website on October 11 at www.hawkexploration.ca under Investor Information - Presentation.
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; and the expected timing and nature of the planned drilling and completion activities and related expected production.
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:
President, CEO and Chairman
Tel: (403) 264-0191 Ext 225
Chief Financial Officer
Tel: (403) 264-0191 Ext 234