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Press release from CNW Group

Hawk Provides Operational Update And Corporate Presentation

Thursday, October 20, 2011

Hawk Provides Operational Update And Corporate Presentation18:08 EDT Thursday, October 20, 2011CALGARY, Oct. 20, 2011 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the "Corporation") announces an update on recent operations.Operational UpdateHawk drilled two (2.0 net) wells in the third quarter of 2011 in its Lloydminster and Chauvin core areas. At Edam, Hawk drilled the 5-34-48-28W3 well which encountered 3.5 metres of oil pay in the Waseca formation. This well has been completed and equipped and is currently on production at 30 barrels of oil per day ("bbl/d").  At Chauvin, the Corporation drilled the 13-22-42-1W4 well which encountered 2.5 metres of oil pay in the McLaren formation. This well has also been completed and equipped and is currently on production at 40 bbl/d.At Seagram Lake, Hawk continues to produce three (1.5 net) recently drilled Leduc horizontal wells. These three wells are currently producing 80 (40 net) bbl/d with an average water cut of 73%. The Corporation's remaining two (1.0 net) horizontal wells are currently suspended after testing large amounts of water (99% water cuts).  Hawk currently has a service rig working on one of the suspended horizontal well and in an attempt to locate the source of water in this well. Various downhole logging and imaging tools have been employed to determine the source of the water and the Corporation is now using packers in an attempt to shut of water off. Should the operation prove successful, Hawk will employ the same techniques on the remaining wells to reduce the watercut and potentially increase oil production. Hawk plans to drill one (0.5 net) single leg horizontal well in Seagram Lake in the first quarter of 2012 and plans to modify its completion technique on this well to limit water encroachment.Hawk's production for the third quarter of 2011 averaged approximately 455 barrels of oil equivalent per day ("boe/d"). Current production is approximately 500  boe/d and is comprised of 90% crude oil. In the fourth quarter of 2011, the Corporation will continue to monitor production from its Seagram Lake wells. In addition, Hawk plans to drill two vertical wells targeting heavy oil in western Saskatchewan.Corporate PresentationAn updated corporate presentation is now available for viewing on the Corporation's website at www.hawkexploration.ca  under Investor Information - Presentation.Third Quarter ResultsHawk intends to report its third quarter 2011 financial and operating results after markets close on Thursday, November 24, 2011.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 releaseIn 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; capital expenditure programs for the remainder of 2011;the expected timing of the release of its third quarter 2011 financial results; and the expected sources of funding for the 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.For further information: 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