HAWK ANNOUNCES STRATEGIC FARM-IN AGREEMENT AT SEAGRAM LAKE
May 05 2011 - 4:40PM
PR Newswire (Canada)
CALGARY, May 5 /CNW/ -- 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). Steve
Fitzmaurice, President, CEO and Chairman, Tel: (403) 264-0191 Ext
225, Email: steve@hawkexploration.ca; Dennis Jamieson, Chief
Financial Officer, Tel: (403) 264-0191 Ext 234, Email:
dennis@hawkexploration.ca
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