CALGARY, Dec. 17, 2014 /CNW/ - Hawk Exploration Ltd.
("Hawk" or the "Corporation") is pleased to announce
an operational update and provide guidance on the Corporation's
2015 capital budget.
Operational Update
Hawk drilled three (3.0 net) oil
wells in western Saskatchewan in
the fourth quarter of 2014 all of which are now currently on
production. At Rush Lake, the
Corporation drilled one (1.0 net) slant well in the fourth quarter
of 2014 which encountered oil pay in the Waseca and Sparky/GP formations. This well is
directly offsetting an existing Sparky/GP pool and a proposed SAGD
thermal development in the Sparky/GP formation. Hawk's well has
been on production since the start of December 2014 from the Sparky/GP formation and is
currently averaging approximately 55 barrels of oil per day
("bopd").
At Eureka, the Corporation drilled its first horizontal well
(1.0 net) on its developing Basal Mannville play. This well has
been on production for approximately three weeks and is currently
producing 60 bopd. Hawk is very encouraged by this initial
production rate and is evaluating future drilling plans using
horizontal wells to fully develop the Corporation's land in this
area. The producing horizontal well was drilled on crown acreage
and is eligible for a crown royalty holiday of 2.5 percent on the
first 38,000 barrels of produced oil. Hawk expects to drill an
additional well in the first quarter of 2015 to evaluate the
potential on the northern portion of the play.
Lastly, at Yonker, the Corporation drilled a McLaren discovery
well that encountered three metres of net pay. This well has been
placed on production and is currently producing 65 bopd. Hawk plans
to acquire some additional two dimensional seismic data on this
play in the first quarter of 2015 and expects to drill further
development wells on this play in the second half of 2015.
First Half 2015 Capital Budget
The Corporation has set
a first half 2015 budget that will see Hawk drill two (2.0 net)
vertical wells in western Saskatchewan both of which are expected to be
drilled in the first quarter of 2015. Hawk is planning on drilling
its second earning well at Forest Bank in the first quarter of 2015
whereby Hawk will pay 100% of the capital costs of the earning well
to earn a 65% working interest in one section of land at Forest
Bank. The Corporation's first earning well at Forest Bank is
currently producing 65 (42 net) bopd. The Corporation also plans to
drill one vertical well at Eureka which will earn the Corporation a
100% working interest in 480 acres of land. Hawk has chosen to
decelerate drilling on our current prospects, but is taking
advantage of the current low price environment to drill two wells
that earn significant additional acreage and add to our inventory
of future opportunities. These wells are Hawk's only remaining
commitment locations.
Hawk will determine its second half 2015 capital budget during
the second quarter of 2015 which will be dependent on the oil price
forecast for the second half of 2015. Hawk will remain disciplined
and flexible with its second half 2015 capital budget as it
monitors oil prices and business conditions.
The Corporation has developed an inventory of development
drilling at its four core areas of Forest Bank, Rush Lake, Eureka and Yonker, all in western
Saskatchewan for the second half
of 2015 and into 2016. The Corporation has also identified several
well recompletion candidates at Forest Bank where the Corporation
anticipates it can add production with low capital costs and
anticipates one (0.65 net) recompletion in the first and second
quarter of 2015.
All of the Corporation's planned capital projects for 2015 are
operated and controlled by Hawk. The Corporation will control
the pace of development of its projects and accelerate or delay
capital spending depending on the price of oil and the
Corporation's cash flow.
Updated Corporate Presentation
An updated corporate
presentation is available for viewing on the Corporation's website
at www.hawkexploration.ca under Investor Info –
Presentation.
About Hawk
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 of Hawk
trade on the TSX Venture Exchange under the trading symbols of
HWK.A.
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; business strategies and plans; projections
of market prices and cost; supply and demand for oil and natural
gas; planned development of the Corporation's oil and natural gas
properties; the timing of and nature of capital expenditure program
for the first half of 2015;and the expected sources of funding for
the 2015 capital expenditure 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.