Hawk announces completion of stategic acquisition and issuance of Class A
shares on deemed exercise of subscription receipts
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
With the completion of the Acquisition, 12,380,953 subscription receipts issued pursuant to a previously completed private placement were deemed to be exercised for an aggregate of 12,380,953 Class A shares of Hawk for no additional consideration or action on the part of the holder.
The Class A Shares will be subject to a four month hold period under applicable Canadian securities laws.
In connection with the Acquisition, the Corporation had GLJ Petroleum Consultants Ltd. ("GLJ") prepare an independent engineering report in accordance with National Instrument 51-101 with an effective date of
The net present value of future net revenue attributable to reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures and well abandonment costs for only those wells assigned reserves by GLJ. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to reserves estimated by GLJ represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of oil, NGL and natural gas reserves provided herein are estimates only. Actual reserves may be greater than or less than the estimates provided herein.
The GLJ Report is based on certain factual data supplied by Hawk and Hawk's opinion of reasonable practice in the industry. The extent and character of ownership and all factual data pertaining to petroleum properties and contracts (except for certain information residing in the public domain) were supplied by Hawk to GLJ. GLJ accepted this data as presented and neither title searches nor field inspections were conducted.
Summary of Oil and Gas Reserves as of August 1, 2009 Reserves Summary ------------------------------------------------------------------------- Natural Gas Heavy Oil Natural Gas Liquids ----------------- ----------------- ----------------- Reserves Gross Net Gross Net Gross Net Category (Mbbl) (Mbbl) (MMcf) (MMcf) (Mbbl) (Mbbl) ------------------------------------------------------------------------- Proved Developed Producing 373 311 251 208 8 6 Undeveloped 94 75 70 56 2 2 ------------------------------------------------------------------------- Total Proved 467 386 321 265 10 8 Probable 237 193 170 138 5 4 ------------------------------------------------------------------------- Total Proved plus Probable 704 579 491 403 15 12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- --------------------------------- Total Oil Equivalent ----------------- Reserves Gross Net Category (Mbbl) (Mbbl) --------------------------------- Proved Developed Producing 423 352 Undeveloped 108 86 --------------------------------- Total Proved 530 438 Probable 271 220 --------------------------------- Total Proved plus Probable 801 658 --------------------------------- --------------------------------- Net Present Value Summary as of August 1, 2009 Net Present Value of Future Net Revenue Before Income Taxes Discounted At (%/year) ------------------------------------------------ Reserves 0% 5% 10% 15% 20% Category M$ M$ M$ M$ M$ ------------------------------------------------------------------------- Proved Developed Producing 14,462 12,713 11,353 10,271 9,393 Undeveloped 3,684 3,032 2,547 2,177 1,888 ------------------------------------------------------------------------- Total Proved 18,146 15,745 13,900 12,448 11,281 Probable 9,841 7,398 5,763 4,624 3,801 ------------------------------------------------------------------------- Total Proved plus Probable 27,987 23,143 19,663 17,072 15,082 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Unit Value Before Income Tax Discounted at 10%/year ------------------ Reserves Category $/boe $/Mcfe ------------------------------------------- Proved Developed Producing 32.26 5.38 Undeveloped 29.56 4.93 ------------------------------------------- Total Proved 31.73 5.29 Probable 26.23 4.37 ------------------------------------------- Total Proved plus Probable 29.89 4.98 ------------------------------------------- ------------------------------------------- Total Future Net Revenue (Undiscounted) as of August 1, 2009 Future Net Capital Revenue Operat- Develop- Abandon- Before ing ment ment Income Reserves Revenue Royalties Cost Costs Costs Tax Category M$ M$ M$ M$ M$ M$ ------------------------------------------------------------------------- Total Proved 36,233 6,914 10,440 408 325 18,146 Total Proved plus Probable 56,508 11,098 16,221 816 387 27,987 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Summary of Forecast Pricing and Inflation Assumptions The GLJ Report used the following prices, exchange rates, and inflation rate assumptions as of July 1, 2009: WTI Edmonton 40 Lloyd AECO - Infla- Cushing degree API Blend at NIT tion Exchange Oklahoma Crude Oil Hardisty Spot Rate Rate Year ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/mmbtu) % ($US/$Cdn) ------------------------------------------------------------------------- Balance 2009 70.00 79.43 67.91 4.54 1.5 0.87 2010 72.00 81.72 68.65 6.32 2.0 0.87 2011 75.00 84.20 69.47 7.16 2.0 0.88 2012 80.00 87.89 70.75 7.56 2.0 0.90 2013 85.00 91.41 71.76 7.93 2.0 0.92 2014 93.85 97.84 76.81 8.47 2.0 0.95 2015 95.73 99.82 78.36 8.75 2.0 0.95 2016 97.64 101.83 79.94 8.94 2.0 0.95 2017 99.59 103.89 81.55 9.13 2.0 0.95 2018 101.59 105.99 83.20 9.33 2.0 0.95 Escalated at 2.0 % per year thereafter.
Hawk is a newly formed company engaged in the exploration, development and production of conventional crude oil and natural gas in western
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 Company 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 Company'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 Company 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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Subscription Receipts offered and the underlying Class A Shares have not and will not be registered under the
For further information: Steve Fitzmaurice, President, CEO and Chairman, Tel: (403) 264-0191 Ext 225, Email: [email protected]; Dennis Jamieson, Chief Financial Officer, Tel: (403) 264-0191 Ext 234, Email: [email protected]
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