West Hawk Drills First Well in Colorado Gas Project to Total Depth, Closes $3.4 Million Financing
Wednesday February 14, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Feb 14, 2007 -- West Hawk Development Corp. (the "Company") (CDNX:WHD.V - News)(Frankfurt:H5N.F - News) is pleased to announce that it has drilled its first well to total depth, 11,090 feet at its Figure Four oil and gas project in Colorado. The well was drilled through the Mancos B zone. During the drilling operations, significant gas shows were periodically encountered from the Wasatch formation, located at 2,100 foot depth, throughout the Willliams Fork, Iles, Sego, Castlegate, and Mancos A-B formations. Not only did the Mancos B zone indicate gas, but also the presence of heavier hydrocarbon distillates. It appears that gas is present in all the formations anticipated as potential production targets. After the well is logged and cased, requiring approximately one week, the drill rig will be moved to the second well pad site, which is completed, and drilling will commence. A work-over rig will then complete the perforation and stimulation operations on the first well. Initial production is expected to commence in late February or early March.
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Dr. John Reeves, Jr., CEO of West Hawk Energy (USA), stated, "We are happy that after a difficult winter month of record low temperatures and snow, we have completed the first well and the signatures indicate that we will meet or exceed company expectations."
WEST HAWK CLOSES FINANCING - In other news, the Company is pleased to announce the closing of a non-brokered private placement totaling $3,400,000. Terms of the financing were announced in News Releases dated January 16, 2007, with amendments announced January 19, 2007 and February 8, 2007, and comprise the issuance of 6,800,000 units at a price of $0.50 per unit for gross proceeds of $3,400,000. Each unit consists of one common share of the Company, and one non-transferable share purchase warrant. Each non-transferable share purchase warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.75 for a period of two years from the closing of the financing.
Gross proceeds to the Company from the sale of all 6,800,000 units is $3,400,000 which will be used towards completion of wells 1 and 2 at the Company\'s Figure Four natural gas property (approximately $2,400,000), and for general working capital purposes (approximately $1,000,000). All securities issued pursuant to the financing are subject to a hold period expiring June 15, 2007. Finders fees payable on a portion of the units sold as part of this financing include a total of $151,493 in cash and 20,000 shares. The financing is subject to approval of the TSX Venture Exchange.
On behalf of the Board of Directors,
Dr. Wm. Mark Hart, Co-Chairman, President, CEO
Chris Verrico, Co-Chairman
About the Company: West Hawk Development Corp. is focused on exploring for and developing valuable, high-demand energy products from a variety of sources. Assets include the 500 billion cubic feet (estimated prospective resources as per NI51-101 report) Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the Fort Norman coal deposit in the Northwest Territories; the Groundhog coal deposit located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. A National Instrument 43-101 report has been filed on the Groundhog property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.
Contact:
Contacts:
West Hawk Development Corp.
Dr. Wm. Mark Hart
President and CEO
(604) 669-9330
(604) 669-9335 (FAX)
Email: info@westhawkdevelopment.com
Website: http://www.westhawkdevelopment.com
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