Hawk Exploration, Ltd. Announces Unaudited Consolidated Earning and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Operating Guidance for the Year 2014
Aug 22 14
Hawk Exploration, Ltd. announced unaudited consolidated earning and production results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported Petroleum and natural gas sales were $4,979,000 against $3,893,000 for the same period of last year. Generated cash flow from operations of $1.9 million in the second quarter, a 28% increase from the $1.6 million in cash flow in the second quarter of 2013. Earned comprehensive income of $0.3 million in the second quarter of 2014, a 1% increase over the second quarter of 2013. Cash flow from operations per share was $0.06 compared to $0.05 for the same period last year. Comprehensive loss per share was $0.01 compared to $0.01 for the same period last year. Capital expenditures was $1,849,000 compared to $419,000 for the same period last year.
For the six months, the company reported Petroleum and natural gas sales were $9,639,000 against $6,810,000 for the same period of last year. Cash flow from operations were $3,708,000 compared to $2,817,000 for the same period last year. Cash flow from operations per share was $0.11 compared to $0.08 for the same period last year. Comprehensive loss was $317,000 compared to comprehensive income of $173,000 for the same period last year. Comprehensive loss per share was $0.01 compared to comprehensive income per share of $0.01 for the same period last year. Capital expenditures was $4,717,000 compared to $2,537,000 for the same period last year.
For the quarter, the company reported total production was 659 boe/d compared to 628 boe/d for the same period last year.
For the six months, the company reported total production was 680 boe/d compared to 626 boe/d for the same period last year.
The company expects its 2014 production to average between 700 boe/d to 725 boe/d, down from its previous average 2014 production guidance of 800 boe/d.
Hawk Exploration, Ltd. Enters into New Bank Loan Facility
Aug 1 14
Hawk Exploration Ltd. announced that it has entered into a loan agreement with respect to a $13.5 million operating demand loan facility with a Canadian chartered bank for the purposes of financing working capital and the repayment and cancellation of certain existing bank credit facilities of the corporation. The new facility bears interest at the at the bank's prime rate plus 0.5% to 1.0%, or at banker's acceptance rates plus a stamping fee of 1.75% to 2.25%. A standby fee of 0.20% to 0.30% is charged on the undrawn portion of the new facility. The new facility is secured by a general security agreement with a floating charge over the assets of the corporation. The new facility will replace the corporation's existing $12.0 million facility with another Canadian chartered bank.
Hawk Exploration Ltd. Enters into Purchase and Sale Agreement with TriHawk Energy Ltd
Aug 1 14
Hawk Exploration, Ltd. announced that it has entered into a purchase and sale agreement with TriHawk Energy Ltd. and certain other parties pursuant to which the Corporation has agreed to acquire certain petroleum and natural gas assets in the plains region of Alberta and Saskatchewan in consideration of a grant to TriHawk of a gross over-riding royalty over the acquired assets. Hawk and TriHawk have determined the value of the Assets to be $1.2 million. The Assets include interests in 3,260 (2,285 net) acres of land mainly within Hawk's core area in western Saskatchewan (2,110 (1,870 net) acres of which are undeveloped), six (1.8 net) producing wells (four (0.4 net) of which are operated by Hawk) that produced an average of 24 boe/d (68% heavy oil) in the first quarter of 2014 and total proved plus probable reserves of 75 Mboe.1 The GORR provides for royalty rates ranging from 3 to 20% on the Assets. The Acquisition is expected to close on or about August 29, 2014.