CALGARY, Feb. 5, 2013 /CNW/ - Hawk Exploration Ltd. ("Hawk" or the
"Corporation") is pleased to provide an operational update. Hawk's fourth
quarter 2012 production averaged approximately 590 boe/d, a 36% increase from the fourth quarter of 2011 while current production is approximately 600 boe/d weighted 95% to crude oil.
Most of the Corporation's oil production is considered heavy oil and, as such, is subject to the current wide differentials (the price difference between Western Canadian Select ("WCS") and West Texas Intermediate) of over $30 per bbl. Hawk's budget for 2013 was based on a WCS price of $67.50 per bbl while current quoted WCS prices are trading at approximately $65.00 per bbl, but are expected to remain volatile. Hawk plans to monitor the impact of these differentials on the Corporation's cash flow and, if necessary, will adjust capital spending to maintain its strong financial position.
The Corporation is planning an active drilling program in the first quarter of 2013 and expects to drill five (4.0 net) vertical wells targeting heavy oil at Silverdale and Dulwich in western Saskatchewan in the first quarter of 2013. Hawk expects to drill three (2.0 net) vertical wells at Silverdale targeting the Sparky formation delineated from three dimensional seismic data shot in the fourth quarter of 2012. Hawk has also recently completed three separate two dimensional seismic programs in western Saskatchewan and eastern Alberta which are expected to lead to vertical oil drilling in the second and third quarters of 2013. The five (4.0 net) well vertical drilling program is anticipated to start later in February, depending on rig availability.
SOURCE Hawk Exploration Ltd.
To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today