CALGARY,
Feb. 5, 2013 /CNW/ - Hawk Exploration
Ltd. ("Hawk" or the "Corporation") is pleased to provide an
operational update. Hawk's fourth quarter 2012 production averaged
approximately 590 boe/d, a 36% increase from the fourth quarter of
2011 while current production is approximately 600 boe/d weighted
95% to crude oil.
Most of the Corporation's oil production is
considered heavy oil and, as such, is subject to the current wide
differentials (the price difference between Western Canadian Select
("WCS") and West Texas
Intermediate) of over $30 per bbl.
Hawk's budget for 2013 was based on a WCS price of $67.50 per bbl while current quoted WCS prices
are trading at approximately $65.00
per bbl, but are expected to remain volatile. Hawk plans to monitor
the impact of these differentials on the Corporation's cash flow
and, if necessary, will adjust capital spending to maintain its
strong financial position.
The Corporation is planning an active drilling
program in the first quarter of 2013 and expects to drill five (4.0
net) vertical wells targeting heavy oil at Silverdale and Dulwich in western Saskatchewan in the first quarter of 2013.
Hawk expects to drill three (2.0 net) vertical wells at
Silverdale targeting the Sparky
formation delineated from three dimensional seismic data shot in
the fourth quarter of 2012. Hawk has also recently completed three
separate two dimensional seismic programs in western Saskatchewan and eastern Alberta which are expected to lead to vertical
oil drilling in the second and third quarters of 2013. The five
(4.0 net) well vertical drilling program is anticipated to start
later in February, depending on rig availability.
Corporate Presentation
An updated corporate presentation is available
for viewing on the Corporation's website 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: projections of market prices including
heavy oil differentials and cost; planned development of the
Corporation's oil and natural gas properties; and the expected
timing and nature of the planned drilling activities and 2013
capital program.
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.