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.
Hawk Exploration, Ltd. Announces Financial and Operating Results for the First Quarter Ended March 31, 2014; Provides Production Guidance for Fiscal 2014
May 28 14
Hawk Exploration, Ltd. announced financial and operating results for the first quarter ended March 31, 2014. For the quarter, the company reported petroleum and natural gas sales of $4,661,000 against $2,917,000 for the same period of last year. Cash flow from operations was $1,759,000 or $0.05 per share against $1,204,000 or $0.03 per share for the same period of last year. Comprehensive loss was $651,000 against $159,000 for the same period of last year. Capital expenditures were $2,869,000 against $2,118,000 for the same period of last year.
For the three months ended March 31, 2014, the production of 702 boe/d, a 13% increase over the 624 boe/d average production in the first quarter of 2013. Generated funds flow from operations of $1.8 million in the first quarter of 2014, a 46% increase from the $1.2 million in funds flow in the first quarter of 2013. Drilled four (4.0 net) vertical wells in the first quarter of 2014 resulting in three (3.0 net) oil wells and one (1.0 net) dry and abandoned well. Hawk generated an operating netback of $35.59 per boe for the first quarter of 2014 which is 43% higher than operating netbacks for the first quarter of 2013 of $24.88 per boe due to mainly to increased realized oil pricing in 2014. Production expenses for the first quarter of 2014 increased to $21.41 per boe compared to $17.17 per boe for the comparative period of 2013 due to increased costs for propane associated with the cold winter weather experienced in the quarter and as a result of a one-time gas processing adjustment related to the Dolcy property.
The Corporation has set a $10 million capital budget for 2014 that will focus on drilling opportunities in western Saskatchewan and east central Alberta targeting medium and heavy crude oil. Hawk plans to drill four (3.7 net) vertical wells in the second quarter of 2014. All four (3.6 net) locations are independent drilling prospects situated on lands which allow for further follow-up development drilling, should the wells prove successful. The company plans to drill one (1.0 net) vertical well targeting heavy oil in the Eureka area of western Saskatchewan which is a follow-up to a well drilled by the Corporation in the fourth quarter of 2013. To date, Hawk has acquired approximately 1,900 net acres of prospective land in the Eureka area. The company also plans to drill two (1.9 net) vertical wells targeting heavy oil in the Neilburg and Baldwinton areas of western Saskatchewan where, collectively, Hawk has acquired 1,280 net acres of land. Additionally, the company plans to drill one (0.7 net) well targeting medium oil in the Provost area of east central Alberta where the Corporation has acquired 560 net acres of land.