sumisu
15 years ago
West Hawk Announces $2.5 Million Brokered Private Placement; Shares for Debt Settlement With Officers and Employees
Press Release
Source: West Hawk Development Corp.
On Tuesday August 25, 2009, 2:28 pm EDT
http://finance.yahoo.com/news/West-Hawk-Announces-25-ccn-29600465.html?x=0&.v=1
DENVER, COLORADO--(Marketwire - Aug. 25, 2009) - West Hawk Development Corp. (TSX VENTURE:WHD - News; "West Hawk" or the "Company") is pleased to announce that it has entered into an agreement with Union Securities Ltd. (the "Agent") to act as the Company's exclusive agent on a commercially reasonable efforts basis in connection with a private placement (the "Offering") of up to 166,666,667 units (the "Units") for aggregate gross proceeds of up to $2,500,000. The Company is also proposing to settle an aggregate of $332,589.50 in outstanding salaries payable to its officers and employees through the issuance of an aggregate of 6,651,790 shares at a deemed price of $0.05 per share. Both transactions are subject to the approval of the TSX Venture Exchange.
Terms of the Proposed Offering
Each Unit sold in the Offering will be issued at $0.015 per Unit, and consist of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable into one common share (a "Warrant Share") of the Company for 24 months from closing at an exercise price of $0.07 per Warrant Share during the first 12 months and $0.10 per Warrant Share thereafter for the balance of the term.
The Company will grant to the Agent an over-allotment option (the "Over-Allotment Option") to purchase up to an additional 10% of the number of Units issued pursuant to the Offering at a price equal to the issue price per Unit. If exercised, the Over-Allotment Option must be executed within 15 business days of the final closing date and completed within 30 business days of the final closing date of the Offering. Assuming full exercise of the Over-Allotment Option, the Company would issue an aggregate of 183,333,334 Units and raise aggregate gross proceeds of $2,750,000.
The Agent will receive a cash commission equal to 10% of the aggregate gross proceeds of the Offering, including proceeds raised pursuant to the Over-Allotment Option. The Agent will also receive compensation options equal to 10% of the aggregate number of Units sold under the Offering, including pursuant to the Over-Allotment Option. Each compensation option will entitle the holder to acquire, for a period of 24 months, one unit (an "Agent's Unit") at a price of $0.05 per Agent's Unit. Each Agent's Unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant, an "Agent's Warrant"), with each Agent's Warrant exercisable into one common share of the Company for 24 months from closing at a price of $0.10 per share.
The Offering is scheduled to close within approximately 30 days and is subject to the Company receiving all necessary TSX Venture Exchange approvals. Proceeds from the Offering will be used to fund planned exploration and assessment work on the Company's Groundhog Coal Project in northwestern British Columbia and for general working capital purposes. The Company's current focus for its Groundhog property is to test the core samples obtained during the Company's October 2008 drill program and, if warranted based on the results of the core samples, commission a current technical report, build a geological model, determine the right business structure to develop the Groundhog property, and prepare a business plan.
"For the Company this is an important step forward in the development of the Groundhog Coal Project. It is a pleasure to have Union Securities supporting this equity raising," said Gonzalo Torres Macchiavello, West Hawk Development President & CEO.
On behalf of the Board of Directors,
Gonzalo Torres Macchiavello, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement and the Groundhog coal property located in northwest British Columbia.
Cautionary Note: This news release contains forward looking statements, particularly those regarding completion of the proposed offering and future development of the Company's Groundhog coal project in northwest British Columbia. The Company has filed a National Instrument 51-101 Report on its Figure Four property. Resource estimates in this report, unless specially noted, are considered speculative. 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 and in many circumstances are beyond the control of the Company. These risks and uncertainties include, without limitation, receipt of required regulatory approvals for the proposed offering and debt settlement, satisfaction of all other conditions precedent to completion of the offering, including completion of satisfactory due diligence by the Agent, and the ability of the Company to raise sufficient funds pursuant to the offering to complete its proposed program on the Groundhog Project. Actual results may vary depending upon, among other factors, the favorable outcome of the foregoing risks and uncertainties, favorable results from proposed exploration and assessment activities, industry production, commodity demand and pricing, currency exchange rates and general economic factors.
Cautionary note to U.S. 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:
Gonzalo Torres MacchiavelloWest Hawk Development Corp.President and Chief Executive Officer1-800-830-0988
www.westhawkdevelopment.com
sumisu
15 years ago
West Hawk Announces Term Sheet for a US$1.8 MM Loan Facility for Natural Gas Project Reorganization
Press Release
Source: West Hawk Development Corp.
On Monday July 20, 2009, 11:45 am EDT
http://finance.yahoo.com/news/West-Hawk-Announces-Term-ccn-495935093.html?x=0&.v=1
DENVER, COLORADO--(Marketwire - July 20, 2009) - West Hawk Development Corp. (TSX VENTURE:WHD - News; the "Company") is pleased to announce that the Company's subsidiaries, West Hawk Energy (USA) LLC and WHE Holdings (USA) LLC (together, "WHE") have signed an offer letter for debtor-in-possession ("DIP") financing of up to US$1,800,000. The proposed DIP lender, First KT Lending LLC (the "Lender"), is a wholly owned subsidiary of Chiron Equities, LLC ("CE"). Chiron Financial Advisors, LLC ("CFA"), WHE's financial advisor in connection with its Chapter 11 bankruptcy proceedings, is an affiliate of CE.
The DIP loan will be structured as a 12 month term loan draw note, with conditions precedent to funding. Proceeds from the DIP loan will be used in accordance with a two-phase budget. The Lender will initially fund $300,000, in staged advances, to bring the first three wells at the Company's Figure Four natural gas project back into production. On completion of Phase I and assuming conditions to further funding are satisfied, the Lender will fund, in staged advances, the balance of the loan amount for Phase II, which includes bringing a further five wells (already drilled) into commercial production.
Conditions precedent to the initial funding include, but are not limited to, the execution and delivery of a definitive loan agreement and other appropriate legal documentation and Lender satisfaction with all due diligence prior to August 30, 2009. Conditions precedent to the Phase II funding of the balance of the DIP loan include, but are not limited to, WHE having filed a plan of reorganization approved by the Lender, WHE having filed a plan support agreement between the Lender and WHE approved by the US Bankruptcy Court and Lender satisfaction with its due diligence review.
The DIP loan will be due and payable in full on the earlier of (a) 12 months from the closing of the financing, or (b) termination of the loan agreement. The Company anticipates repayment of the loan through revenues generated by well production to the extent possible, and/or entering into a further transaction with the Lender. The Lender has stated its interest in investigating a larger potential transaction with West Hawk, to which the loan is an interim step.
Monthly interest will accrue on the outstanding principal amount of the loan at an annual interest rate equal to the floating 30 day LIBOR as published in the Money Rates section of the Wall Street Journal plus 10.00%. Upon the occurrence of any event of default, principal, interest and fees will be due and payable at 4.0% per annum above the then otherwise applicable rate. A DIP loan facility fee equal to 5.0% of the total committed DIP loan amount shall be deferred and payable upon the sooner of (a) termination, or (b) prepayment. The Borrowers may prepay some or all of the DIP loan at any time, subject to an early termination fee ranging between US$50,000 and US$250,000 depending on the timing of any such prepayment. No early termination fee would be charged if the loan is paid pursuant to a plan of reorganization supported by the Lender.
Events of default include the filing of a plan of reorganization without the Lender's consent; conversion of the Chapter 11 bankruptcy protection to Chapter 7 bankruptcy; termination of any of the leases or contracts for the Figure Four project; denial by the Court of the plan support agreement; a change of control of WHE; and a motion to sell WHE assets without the approval of Lender.
WHE will continue to operate their respective businesses and manage their respective properties and hydrocarbon interests as debtors in possession under sections 1107 and 1108 of the Bankruptcy Code.
"The DIP financing will provide the Company with the resources necessary to bring into commercial production five wells (already drilled) that will be added to the current thee wells that were in commercial production until December 2008 and will be reopened for commercial sales. This financing will provide the Company with the opportunity to have a permanent solution for the gas project and focus in the development of the Company's Groundhog coal project located in northwest British Columbia," said Gonzalo Torres Macchiavello, President and CEO of West Hawk Development Corp.
On behalf of the Board of Directors,
Gonzalo Torres Macchiavello, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement and the Groundhog coal property located in northwest British Columbia.
Cautionary Note: This news release contains forward looking statements, particularly those regarding completion of the proposed debtor-in-possession financing, bringing the wells at the Company's Figure Four natural gas project into commercial production and future development of the Company's Groundhog coal project in northwest British Columbia. The Company has filed a National Instrument 51-101 Report on the Figure Four property. Resource estimates in these reports, unless specially noted, are considered speculative. 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 and in many circumstances are beyond the control of the Company. These risks and uncertainties include, without limitation, negotiation of a definitive loan agreement with the Lender on terms satisfactory to the Company and satisfaction of all other conditions precedent to advancement of the DIP loan, including Court approval of a plan support agreement between the Lender and WHE Actual results may vary depending upon, among other factors, the favorable outcome of the foregoing risks and uncertainties, favorable results from proposed exploration and development activities, industry production, commodity demand and pricing, currency exchange rates and general economic factors.
Cautionary note to U.S. 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:
Gonzalo Torres MacchiavelloWest Hawk Development Corp.President and Chief Executive Officer1-800-830-0988
http://www.westhawkdevelopment.com
nipntuck
15 years ago
West Hawk resumes trading
Jul 10, 2009 19:57 ET
West Hawk Provides Disclosure Update for Application to Reinstate Trading
DENVER, COLORADO--(Marketwire - July 10, 2009) - West Hawk Development Corp. (TSX VENTURE:WHD) (the "Company") is pleased to provide to its shareholders and other stakeholders, this comprehensive update regarding the Company's business and operations made in connection with its reinstatement of the trading of its shares on the TSX Venture Exchange (the "Exchange").
Reinstatement Application
The Company submitted its application for reinstatement of trading to the Exchange on June 30, 2009 following a lengthy and comprehensive compliance review during which the Company's shares have been suspended from trading. Trading is expected to recommence on July 15, 2009.
In the course of its review, the Exchange has identified deficiencies in the Company's disclosure record and other occasions on which the Company was not in compliance with Exchange policies. As a result, the Company has been put on notice by the Exchange to comply with Exchange policies in the future.
Chapter 11 Proceedings
The Company filed for protection under Chapter 11 of the Bankruptcy Code on behalf of West Hawk Energy (USA) LLC ("WHE"), an indirect partially owned subsidiary, on December 18, 2008. The Company holds a 75% interest in WHE through its wholly-owned subsidiary, West Hawk Holdings (USA) LLC ("WHE Holdings"). The remaining 25% of WHE is owned by Shanxi Lu'An Mining Industry (Group) Company of China.
WHE has engaged Chiron Financial Advisors, LLC ("Chiron") as its financial advisors and they have been working together to find the best financing solution for the Company. Over the previous six months they have held several management meetings and discussions, have met with debtor's counsel and have completed several field visits to the Figure Four project. On January 27, 2009 WHE met with creditors representatives and the US Trustee, at which meeting the Trustee gave creditors the opportunity to organize a creditors' committee. However, no creditors elected to participate in a creditors committee and to date, no creditor proposals have been advanced.
WHE had until June 18, 2009 to implement the restructuring of WHE's indebtedness and improve its capital structure, but WHE has applied for and obtained from the United States Bankruptcy Court for the District of Colorado (the "Bankruptcy Court") an extension to the exclusivity period under the Chapter 11 protection for six months to November 18, 2009. The Company continues to work with its legal and financial advisors to develop the most appropriate reorganization plan for WHE, which includes negotiating amendments to WHE's Drilling and Development Agreement with EnCana Oil and Gas (USA) Inc., assessing how much funding WHE will require to implement the plan of reorganization and negotiating debtor-in-possession financing with Chiron. The plan submission deadline is November 15, 2009. The Company will provide further updates on the Chapter 11 proceedings as they occur.
WHE is indebted in the amount of approximately $10.3 million. See "Fuselier Holdings LLC" below.
On April 7, 2009, the Company filed for protection under Chapter 11 of the Bankruptcy Code on behalf of WHE Holdings in respect of approximately $1,000,000 in intercompany debt. That same day, WHE Holdings and WHE filed a joint motion in the Bankruptcy Court to consolidate the companies' bankruptcy estates. If the motion is approved, all assets and liabilities of each company would be consolidated and deemed assets and liabilities of both companies, any claim or obligation against one company would be deemed a claim or obligation against both companies, and any plan of reorganization would be a single plan for both companies as a consolidated entity. The motion is before the Bankruptcy Court, which has not yet scheduled a hearing date. It is not known when the hearing will be held. In the event that the motion to consolidate is denied, WHE and WHE Holdings will each pursue its plan of reorganization independently, in which case WHE Holdings will have until November 15, 2009 to submit its plan of reorganization and is currently working with Chiron to this end.
Fuselier Holdings LLC
The Company announced on January 2, 2009 that Fuselier Holdings LLC ("Fuselier") had terminated the agreement (the "Agreement") pursuant to which WHE had assigned and transferred to Fuselier approximately US$10.6 million in outstanding trade debt (the "Debt"). The termination of the Agreement caused approximately US$9.3 million in Debt remaining unpaid at the time of termination to revert back to WHE.
WHE is currently indebted to its creditors in the amount of approximately US$10.3 million, which includes the US$9.3 million that reverted back to WHE on termination of the Agreement and approximately US$1 million in additional WHE trade debt that was never assigned to Fuselier. At the time of execution of the Agreement, US$10.6 million represented the Company's best estimate of the aggregate WHE creditor claims then outstanding. While negotiating settlements with creditors, Fuselier estimated that the actual amount owed to the creditors was US$1.4 million greater. The Company, however, believes that the additional debt is closer to US$1 million, as noted above. The Agreement contemplated that in such circumstances the parties would amend the Agreement to assign the additional debt, but no such amendment was made prior to the termination.
On termination of the Agreement and reversion of the Debt to WHE, Fuselier has no further liability in respect of the Debt and neither WHE nor the Company has any further rights of indemnification against Fuselier in respect of the Debt.
The Company originally announced the Agreement on April 10, 2008. The transaction allowed the Company to consolidate WHE's debts, free up cash flow and ultimately remove liens that had been filed by the trade creditors against the Company's Figure Four project. The Company unsuccessfully pursued alternate financing on more favorable terms for several months before it signed the Agreement with Fuselier.
In consideration for assuming the US$10.6 million in Debt, the Company agreed to pay Fuselier US$11.9 million through the transfer of 4,000,000 previously issued common shares of the Company (having an aggregate value of US$800,000) and the issue of two promissory notes (the "Notes") totaling US$11.1 million. Of this amount, US$1.3 million represented Fuselier's transaction fees, including the interest costs and penalties that Fuselier assumed on the transferred Debt and management, legal and administrative fees. The Notes and accrued interest were payable by the Company through the issuance of common shares at a minimum price per share of not less than $0.19, which was the then market price of the Company's stock. It was intended that Fuselier would sell the Company's shares into the market in order to raise the funds necessary to pay down the assigned Debt. The transaction was subject to Exchange approval, which the Company received on April 30, 2008.
In early November 2008, Fuselier defaulted in its payments to the creditors. Following this default, the Company advanced a total of US$125,000 to Fuselier throughout November and December 2008 so that Fuselier could meet its payment obligations to WHE's creditors (and thereby avoid a default by WHE under the DDA). The loan was never repaid and the Company therefore applied the US$125,000 loan amount as an additional payment against the outstanding principal balance of the Notes.
On December 18, 2008, Fuselier advised the Company that it was terminating the Agreement because the Company's shares were suspended from trading on the Exchange and because the Company's share price fell below $0.19. Under the terms of the Agreement, Fuselier was permitted to terminate the Agreement only for cause, which included, among other matters, the Company or any material subsidiary of the Company liquidating, seeking bankruptcy protection or ceasing to operate, or any of the Company's representations and warranties under the Agreement being or becoming false. The Agreement provides that if Fuselier terminates the Agreement for cause, the Company is not entitled to any repayment of the shares issued under the Notes. The Company is consulting legal counsel to determine whether Fuselier had sufficient cause under the Agreement to terminate; however, there is no assurance that the Company will have adequate grounds to seek any remedy against Fuselier or whether, if a remedy is sought, the Company would be successful in recovering any of the shares issued to Fuselier or the value of such shares.
At the date of termination of the Agreement, Fuselier had made payments against the Debt to WHE creditors totalling US$1,247,434 and the Company had transferred or issued an aggregate of 21,757,391 common shares to Fuselier (or 14.5% of the Company's current outstanding share capital) over a period of 9 months in satisfaction of US$4,675,070 in outstanding principal and interest under the Notes. A portion of these shares were sold by Fuselier to pay WHE's creditors and reduce the Debt. Fuselier is not a registered shareholder of the Company and accordingly, the exact number of shares currently held by Fuselier is not known to the Company. However, Fuselier was limited under the terms of the Agreement to holding not more than 9.9% of the Company's shares at any time. To the Company's knowledge, Fuselier does not currently hold more than 9.9% of its shares.
The Notes were deemed cancelled on termination of the Agreement and accordingly, WHE and the Company are no longer obligated to pay the balance of the Notes or issue any further shares to Fuselier under the Notes.
In a separate but related transaction, Fuselier has defaulted on its repayment to the Company of the US$1.3 million bridge loan announced May 30, 2008. Fuselier used the funds to settle certain debt obligations WHE owed to Laurus Master Fund, Ltd. The Company had extended the maturity date of the loan on several occasions, most recently to December 31, 2008, but after Fuselier again failed to meet the December 31st repayment deadline, the loan agreement terminated. The related US$1.684 million promissory note issued to Fuselier similarly terminated and neither party has any further liabilities or obligations to the other under the two notes or the related agreements. As at the date of termination, the Company had made no payments to Fuselier under the US$1.684 million note.
Fuselier and Jean R. Fuselier, the Chief Executive Officer and principal shareholder of Fuselier, are no longer involved with the Company in any manner other than as a shareholder.
EnCana Arbitration and Litigation
As disclosed in the Company's press release dated March 23, 2009, WHE has filed a Demand for Arbitration and commenced a lawsuit against EnCana Oil and Gas (USA) Inc. raising claims under the parties' Drilling and Development Agreement dated May 1, 2006. The arbitration is pending and a hearing is scheduled regarding the litigation for December 7, 2009 in the State District Court.
Operations
To continue exploration and assessment work on the Company's Groundhog coal property, located in British Columbia, Canada, the Company anticipates that it will need to raise approximately $1.5 million, which includes payment of approximately $530,000 in outstanding accounts payable and $1 million to complete its analysis of coal samples obtained during the Company's October 2008 drill program and thereafter commission a current technical report. The Company's current focus for its Groundhog property is to test the core samples obtained and, if warranted based on the results of the core samples, commission a current technical report, build a geological model, determine the right business structure to develop the Groundhog property, and prepare a business plan. The Company has made the required property payments and the property remains in good standing.
Drilling and gas production at the Company's Figure Four project has also been suspended. A top priority of the Company's reorganization plan for WHE is to secure production from the eight existing wells in the future. The Company has previously announced its engagement of Chiron Financial Advisors LLC to assist in raising the funds necessary to complete the reorganization and resolve WHE's outstanding Chapter 11 bankruptcy.
Management Team
The Company's board of directors and executive management have undergone changes since the November 5, 2008 suspension. On December 4, 2008, Mr. Roger Baer resigned as Managing Director, Canadian Operations and Mr. Fabio Capponi resigned from the Board of Directors. On January 6, 2009, Mr. Gonzalo Torres Macchiavello replaced Dr. Wm. Mark Hart as President and Chief Executive Officer. Also in January 2009 the Company, as part of its cost reduction plan, laid off Dr. Andrew Schissler, Executive Vice President of Engineering and Ms Kongrui Wang, Controller. On March 1, 2009, Dr. Jinsheng Chen resigned as a director and as President and Chief Executive Officer of Asian Operations. On March 24, 2009, Mr. John Owen was appointed Chief Financial Officer, but resigned shortly thereafter also on March 24, 2009 after Mr. Owen and the Company failed to agree on the terms of Mr. Owen's compensation package. Mr. Lonny Haugen was appointed Chief Financial Officer on April 20, 2009. On July 7, 2009, Dr. Hart resigned from his position as Chairman of the Company but continues to serve on the Board of Directors.
Mr. Haugen continues to serve the Company as Chief Financial Officer and Mr. Macchiavello continues to serve as President and Chief Executive Officer. Mr. Baer continues to act in a consulting capacity in regards to matters related to his past positions in the Company on an as needed basis. The Board of Directors is now comprised of Dr. Hart, Mr. Macchiavello, Mr. Richard Braun, Mr. David Francisco and Mr. Dongfei Wong.
This experienced team of individuals, led by Mr. Macchiavello, is committed to creating a sustainable business model and maximizing value for the Company's shareholders. The team is also committed to maintaining a standard of timely, consistent and accurate communication with its stakeholders, including its shareholders, regulators and the public. The team's immediate priorities are to complete a plan of reorganization of WHE assets and resolve the outstanding Chapter 11 bankruptcy proceedings of WHE and WHE Holdings, find a permanent and sustainable solution for the Company's Figure Four natural gas project, secure financing for its operations, including in particular the continued exploration of its Groundhog coal property, and significantly reduce its debt.
On behalf of the Board of Directors,
Gonzalo Torres Macchiavello
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement and the Groundhog coal property located in northwestern British Columbia.
Cautionary Note: This news release contains forward-looking information, including in particular, statements regarding the anticipated reinstatement of the trading of the Company's shares on the Exchange, anticipated completion of a satisfactory restructuring of assets and debt of WHE and WHE Holdings, anticipated capital raising, capital expenditures and investment plans. By its nature, forward-looking information involves risks and uncertainties because such information relates to events and depends on factors that will or may occur in the future. Actual results may vary depending upon a number of factors, including without limitation, the discretion of the Exchange to reinstate trading of the Company's shares, the ability of the Company to raise sufficient capital and/or find funding partners to complete a restructuring of WHE and WHE Holdings and recommence operations at the Company's properties, results of exploration, industry production, commodity demand and pricing, currency exchange rates and general economic factors.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
sumisu
16 years ago
West Hawk Reports Initial Coal Intercepts at Groundhog
Tuesday September 16, 10:55 am ET
http://biz.yahoo.com/ccn/080916/200809160486093001.html?.v=1
DENVER, COLORADO--(Marketwire - Sept. 16, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; FRANKFURT:H5N - News; "the Company") is pleased to announce the completion of 5 of the 10 permitted exploration drill holes from the current drilling program underway at the 8,897 hectare Groundhog property in northern British Columbia.
Drill-holes 1 through 5 have been drilled to approximate depths ranging from 200 to 300 meters. Drill cores have been measured indicating coal seams ranging from 1 to 8 meters in thickness. The exploration drilling program is concentrated in a 5 km2 quadrant area, where an initial mine plan is focused. Drill cores are being logged and core samples are being managed by the project's geology team.
The Company strongly cautions investors that the results described in this news release are from visual observations with respect to the coal samples. Detailed analytical work is underway, and the results of the program will be announced when completed. Highlights of the program are as follows:
- Multiple coal intercepts were encountered in all 5 core holes that have been drilled as part of the Company's current exploration program for 2008.
- Drill-hole 4 has encountered the largest coal intercept at an approximate 8 meter thickness.
- Representative photo of a portion of one of the coal intercepts are shown below.
- The proximate analyses (ash, fixed carbon, moisture, thermal energy, etc.), rank of the coal, sulphur content and the coal's coking characteristics (if any), will be determined by the analysis of core samples submitted to SGS' lab in British Columbia. The testing results will be released when completed.
The Qualified Person who has reviewed and approved this news release is Tom Tveten, CPG, of Weir International ("Weir"). He is currently on site at the project to provide technical assistance as the program enters the second half of the drilling program. Weir has been commissioned to prepare a resource update of the existing NI 43-101 report for the Groundhog property.
"The drilling program is proceeding quickly. The team that is on-site has been excellent, and we are looking forward to the results," commented Roger Baer, West Hawk's Managing Director, Canadian Operations.
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets under development include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; and the Groundhog coal property located in northwest British Columbia.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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.
To view a representative photo of a portion of one of the coal intercepts, please click on the following link: http://www.westhawkdevelopment.com/doc/groundhog/dh4_core.pdf
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:
Wm. Mark Hart
West Hawk Development Corp.
President and Chief Executive Officer
1-800-830-0988
Website: www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
sumisu
16 years ago
West Hawk Signs Loan and Debt Settlement Agreements With Fuselier
Tuesday September 9, 12:30 am ET
http://biz.yahoo.com/ccn/080909/200809090484640001.html?.v=1
DENVER, COLORADO--(Marketwire - Sept. 9, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; "West Hawk" or the "Company") announces that it has signed definitive loan and debt settlements agreements with Fuselier Holding, LLC ("Fuselier"). The agreements were entered into after further negotiation of the terms of the commitment letter announced by the Company May 30, 2008.
As previously announced on May 30, 2008, West Hawk has issued Fuselier a convertible promissory note in the amount of US$1.685 million (the "Replacement Note") in exchange for Fuselier canceling the approximately US$1.3 million West Hawk secured term note Fuselier acquired from Laurus Master Fund, Ltd. ("Laurus"). The principal amount of the Replacement Note includes a US$385,000 acceleration fee West Hawk had owed to Laurus under the term note at the time Fuselier acquired it. The Replacement Note bears interest at 12% and, under the debt settlement agreement, is repayable in common shares of West Hawk at a price of $0.28 per share. Fuselier has in turn also discharged and released all security interests registered by Laurus against West Hawk's properties, including the Deed of Trust filed against the Company's Figure Four property, security interests filed against its Canadian coal properties, and the pledge of West Hawk's ownership interest in West Hawk Energy (USA), LLC, which holds the Figure Four Project. Further, Fuselier has disclaimed and returned to West Hawk its right, title and interest in and to the 2.5% overriding royalty interest in the Figure Four Property acquired from Laurus.
Under the definitive loan agreement, West Hawk has agreed to extend the maturity date of the $1.3 million bridge loan the Company advanced to Fuselier on May 29, 2008, from June 30, 2008 to September 30, 2008. In the event that the bridge loan is not repaid by September 30, 2008 the Replacement Note will automatically terminate and neither West Hawk nor Fuselier will have any continuing obligations to each other under either the bridge loan or the Replacement Note. Under the original commitment letter, in the event of a default by Fuselier under the bridge loan West Hawk had a right of set-off against the Replacement Note. West Hawk elected not to exercise this right of set-off on June 30, 2008 and instead negotiated an extension of the maturity date to September 30, 2008.
The terms of the debt settlement agreement and the issuance of West Hawk shares on conversion of the Replacement Note are subject to the approval of the TSX Venture Exchange.
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets under development include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; and the Groundhog coal property located in northwest British Columbia.
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:
(303) 524-1424
West Hawk Development Corp. - North America
(303) 524-1285 (FAX)
Email: news@westhawkdevelopment.com
Website: www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
sumisu
16 years ago
West Hawk Development Drilling Update on Groundhog and Figure 4 Projects
Tuesday August 26, 4:57 pm ET
http://biz.yahoo.com/ccn/080826/200808260482130001.html?.v=1
DENVER, COLORADO--(Marketwire - Aug. 26, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; FRANKFURT:H5N - News; the "Company") is pleased to provide updates on the British Columbia, Groundhog coal project, Oklahoma/Arkansas metallurgical coal project, Colorado natural gas project and the West Hawk Petrobras due diligence process.
British Columbia-Groundhog Drilling Update
- Mine office has been established in Hazelton, British Columbia.
- Hole 1 drilling has been completed and core analysis is in progress.
- Hole 2 drilling in progress.
West Hawk would also like to announce that it has completed the 120 day due diligence on the Oklahoma/Arkansas Metallurgical Coal Mine which began in May, 2008.
Colorado Figure 4
- Well 5 drilling is projected to be completed today and the rig will move to well 7. A second rig will start well 6 shortly. The two Niobrara wells will be drilled in the fall.
- Wells 1, 2, 3 and 4 production optimization program is in progress.
- Two rigs will be drilling throughout September.
"Based on the progress that is being made it is evident that New Tech Engineering, West Hawk's independent drilling and completion contractor, continues to add tremendous value to the Figure 4 project," said Gonzalo Torres Macchiavello, President and CEO Americas, West Hawk Development.
Petrobras Figure 4 Update
- Petrobras due diligence process nearing completion.
- 12 continuous weeks of technical and commercial analysis have occurred.
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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:
Wm. Mark Hart
West Hawk Development Corp.
President and Chief Executive Officer
1-800-830-0988
Website: http://www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
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PIRAT
16 years ago
West Hawk Starts Drilling Program at Groundhog Coal Property
7/31/2008 10:59:17 AM - Market Wire
DENVER, COLORADO, Jul 31, 2008 (Marketwire via COMTEX News Network) --
West Hawk Development Corp. (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") is pleased to announce the start of the exploration program at its Groundhog anthracite coal property, a region north of Terrace, British Columbia. The drilling and sampling program will add vital information on coal quantity and quality within each seam and samples of coal will be tested for its PCI/coking characteristics. In accordance with the access agreements signed with local First Nations, West Hawk along with representatives of the First Nations People are conducting a cultural review this week prior to the start of drilling on the property.
Drilling and sampling on the property will be managed by WHD under Roger A. Baer's, Managing Director of Canadian Operations, leadership. The first phase of the program will total 10 drill core holes. Comprehensive laboratory analysis of the drill cores will be undertaken by SGS to determine the full extent of the PCI/coking properties of the coal and categorize the coal into the measured and indicated classification. "We want to expand the 43-101 report prepared by WEIR International. The exploration program will adhere to the highest "Best Practice" engineering standards," said Andrew P. Schissler, Executive Vice President of Engineering, West Hawk.
Over the next several weeks a camp will be mobilized and drilling equipment will be moved into the area. Permit applications were submitted at the beginning of July and it is currently at the referral stage of the process. The Company expects to receive approval shortly and drilling to start in late summer.
West Hawk is committed to being environmentally responsible and has outlined a four-seasons baseline environmental study to be conducted over the next 12 months. The Company has no interest in coal bed methane as part of its exploration and development plans for the Groundhog coal project.
"West Hawk wishes to thank Union Securities and the First Nations people for their help in this important Groundhog, British Columbia endeavor," stated Gonzalo Torres Macchiavelo, President and CEO of the Americas.
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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.
SOURCE: West Hawk Development Corp.
West Hawk Development Corp. Wm. Mark Hart President and Chief Executive Officer 1-800-830-0988 Website: www.westhawkdevelopment.com
Copyright (C) 2008 Marketwire. All rights reserved.
sumisu
16 years ago
West Hawk, Petrobras Update
Tuesday July 29, 3:15 am ET
http://biz.yahoo.com/ccn/080729/200807290476503001.html?.v=1
DENVER, COLORADO--(Marketwire - July 29, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; FRANKFURT:H5N - News; the "Company") would like to provide an update on the status of its technical and commercial meetings with Petrobras - Petroleo Brasileiro S.A ("Petrobras") to jointly develop the Company's Figure Four Natural Gas Project in the Piceance Basin, Colorado. WHD announced that it had signed a Memorandum of Understanding ("MOU" or "Agreement") with Petrobras on June 12, 2008.
During the months of June and July several technical and commercial meetings between West Hawk and Petrobras have taken place, in both Denver and in Brazil. At this time Petrobras is going through their Due Diligence process. The terms and conditions of the possible transaction have already been discussed by Petrobras and West Hawk.
"It has been a pleasure to work through the Due Diligence process with Petrobras. The relationship between the two companies has been extremely positive," said Gonzalo Torres Macchiavello, President and CEO of the Americas, West Hawk Development Corp.
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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:
Wm. Mark Hart
West Hawk Development Corp.
President and Chief Executive Officer
1-800-830-0988
Website: www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
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futrcash
16 years ago
I would really like to see an update on this,...
as its the ONLY announcement I've seen from this company that implies near term revenues!
Figure Four once upon a time implied that,but most here know the history of that attempt.Hopefully Petrobras can pick up that fumble and start running the ball there.
However,this Coal mining pr issued back in the middle of May implies that WestHawk has an unutilized expertise and capacity for underground mining.
I'd sure like to see them prove that.
Source Marketwire
Date 05/13/2008
Time 05:56:46 AM
Company WEST HAWK DEVELOPMENT CORP.
Title West Hawk and FEV Energy to Acquire Coal Mine and Coalbed Methane Operation
CDNX Symbol: WHD
Press Release
NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: West Hawk Development Corp.
TSX VENTURE SYMBOL: WHD
FRANKFURT SYMBOL: H5N
May 13, 2008
West Hawk and FEV Energy to Acquire Coal Mine and Coalbed Methane Operation
DENVER, COLORADO--(Marketwire - May 13, 2008) - West Hawk Development Corp.
("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") is pleased to
announce that it has entered into a letter of intent with FEV, a private
Denver, Colorado based Energy Company to acquire and develop a coal mine and
coalbed methane gas operation in Oklahoma and Arkansas.
Currently both companies, West Hawk and FEV, are in a due diligence process to
evaluate the best mining and business alternatives for the coal property. As
soon as this process is satisfactorily completed, both companies will start to
develop the coal mine and coal bed methane extraction system. The property has
existing infrastructure with access to rail, paved roads, water, and power on
site. Water transportation is nearby and all permits are in place. The product
has a long history of being used in the North American and International market
and can be taken to market by either rail or water.
The coal resource has produced high quality metallurgical and thermal coal on a
continuous basis since the early 1900's. Farrell-Cooper Mining Company
("Farrell"), a private company based in Oklahoma and Arkansas, has mined the
Hartshorne coal seam with surface mining techniques since the 1940's. The low
volatile, low moisture, 6 to 8% ash, and 1% sulfur product with in excess of
13,000 Btu per pound coal was processed through a preparation and processing
plant and supplied to the high demand export and domestic metallurgical coal
market.
Upon completion of a satisfactory due diligence:
- Both parties will incorporate a new limited liability company (LLC) in which
West Hawk will own one third, and FEV will own two thirds
- West Hawk will manage the new company and manage the coal and coal bed
methane extraction operation(s)
- FEV will manage the gas gathering and gas sales operations
- FEV and its associates are committed to provide project financing to the new
LLC
- West Hawk will commission a CNI Report to provide a potential resource
estimate
Farrell Cooper Mining Company specializes in surface mining and is selling the
property since it will require underground mining techniques. Farrell mined
this property to a highwall and West Hawk will now use underground techniques
to mine the remaining coal seam as an underground resource and extract the gas
in an integrated fashion.
"We are extremely pleased to work with FEV Energy, as the vision of both
companies is very similar in terms of bringing clean energy to the world. They
have an outstanding group of people and both teams compliment each other in
terms of operations and financial capabilities. West Hawk also sees this move
as strategic to our British Columbia, Groundhog project, as the two coals can
compliment each other in the PCI, metallurgical, and gasification market," said
Wm. Mark Hart, President and CEO of West Hawk Development Corp.
"We have been evaluating various companies to develop this underground deposit
as we completed the surface mining portion of the property and we look forward
to a long working relationship with West Hawk and FEV as together these
companies have the operating, technical and financial strength to create
substantial value," said William J. Cooper, President of Farrell Cooper Mining
Company.
This coal can be used in the metallurgical market, the steam market and for
gasification to Coal-to-Liquids, Coal-to-Gas, or Coal-to-Power. West Hawk
proposes to extract gas from the coal seam and associated strata and distribute
to nearby pipelines for distribution to the market. Subject to due diligence,
it appears that the resource may be able to support three separate mining
operations, with a 14 mile long outcrop.
"West Hawk Development has been seeking a financial partner to back its
experienced mining operation team. West Hawk's operational capabilities and
FEV's financial strength have helped the team win this opportunity," said
Richard F. Braun, director at West Hawk.
"The companies were up against some very large players in the bidding process,
but we have won the opportunity and we are very pleased," said Roger A. Baer,
CFO of West Hawk.
"With existing permits, installed infrastructure, control over the gas rights,
and an extremely hungry market for this product, we can bring this product to
market much quicker than the typical operation," stated Dr. Jinsheng Chen,
President of Asian operations for West Hawk.
"The Arkoma coal region has provided energy for 100 years building America,
making steel, and providing a superior fuel for heat and electricity. West Hawk
looks forward to working with our partners to build a world-class clean energy
system on this superb property," stated Dr. Andrew P. Schissler, Executive Vice
President of Engineering, West Hawk.
"Dr. Schissler is leading the due diligence and development team through to
production, at which time, the project will be handed over to the operational
team," stated Gonzalo Torres Macchiavello, President of North America
Operations, West Hawk.
On behalf of the board of directors,
Dr. Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing
valuable, high-demand clean energy products from a variety of sources. Assets
include the Figure Four natural gas property located in the Piceance Basin,
Colorado, being developed under a drilling and development agreement; the
Groundhog coal property located in northwest British Columbia; the Tulita coal
property in the Northwest Territories; and the Ellesmere Island, Nunavut
Territory coal property.
Cautionary Note: This report contains forward looking statements, particularly
those regarding cash flow, capital expenditures, coal quality and investment
plans; being historic in nature, cannot be verified by the Company, do not
comply with modern reporting standards (NI 43-101), and therefore should not be
relied upon. Resource estimates, unless specially noted, are considered
speculative. The Company has filed a National Instrument 51-101 Report on the
Figure Four property. The Company has filed National Instrument 43-101 Reports
for each of the Tulita coal property in the Northwest Territories, the Nunavut
Coal property and the Groundhog Coal 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 U.S. 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.
- 30 -
CONTACT INFO:
West Hawk Development Corp.
Dr. Wm. Mark Hart
President and Chief Executive Officer
(303) 524-1424
Fax: (303) 524-1285
Website: www.westhawkdevelopment.com
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.
INDUSTRY: Energy and Utilities - Coal, Energy and Utilities - Oil and Gas ,
Manufacturing and Production - Mining and Metals
SUBJECT: TMN - TAKEOVERS/ LETTER of INTENT
sumisu
16 years ago
West Hawk Plans Coal Exploration in Canada
Tuesday June 24, 10:26 am ET
http://biz.yahoo.com/ccn/080624/200806240470523001.html?.v=1
DENVER, COLORADO--(Marketwire - June 24, 2008) - West Hawk Development Corp. (TSX VENTURE:WHD - News; FRANKFURT:H5N - News; the "Company") is pleased to provide this update on the Company's Canadian Exploration Projects: Groundhog in British Columbia, Tulita in Northwest Territories, and Ellesmere Island, Nunavut. The primary objective of the upcoming work programs will be to define potential coal resources on all three coal prospects in Canada. A qualified person has been hired from WEIR International Inc. ("WEIR") to perform sufficient work to classify the historical estimates as current mineral resources or mineral reserves. Tom A. Tveten, Chief Geologist of WEIR is an Independent Qualified Person (the "Qualified Person") as defined in NI 43-101 Standards of Disclosure for Mineral Projects for all 3 projects and is the author behind all 3 reports.
Work Summary of the past 14 months
- NI 43-101 Technical Reports prepared by WEIR have been filed for each project
- Coal Sampling and testing by Sasol for gasification; results show coal is suitable for gasification
- Talks with potential partners for new opportunities and partnerships
- Traditional Knowledge Study in NWT
- Preliminary Environmental assessment
- Discussions for offtake/future sales agreements
Groundhog (British Columbia)
West Hawk has an option to acquire a 100% interest of the Groundhog Coal Property and holds coal exploration licenses for 8,887 hectares in British Columbia, Canada. The coal quality ranges from low volatile bituminous to anthracite coal. The potential exploration target estimate within West Hawk's coal exploration licenses is 275-300 million in-place tonnes. The Groundhog Coalfields have been explored by Coastal Coal, National Joint Venture, B.C. Hydro, L.G. Scott, Groundhog Coal, Suncor, and Gulf beginning in the early 1960s and continuing until the mid 1980s. National Joint Venture and Imperial drilled a total of 12 holes, totaling approximately 2,051 metres, in the Discovery Creek and Evans Creek areas. In 1970 National Joint Venture drilled six holes, totaling approximately 1,034 metres, and in 1981 Imperial drilled six holes, totaling approximately 1,017 metres.
The NI 43-101 technical report can be seen online at http://www.westhawkdevelopment.com/doc/report/pdf/43101_groundhog.pdf
About Tulita (Northwest Territories)
The Company has 100% interest in exploration licenses covering 229,150 acres. The Tulita Report reveals that the Tulita Prospect contains approximately 1.544 billion in-place tonnes of historical resources with quality ranging from lignite to sub-bituminous coal. The coal samples have been successfully tested by Sasol-Lurgi for gasification. There are three prospect areas within the exploration licenses, referenced as Fort Norman, Seagull Island and Tate Lake. The Tate Lake Prospect Area is divided into three blocks; Northeast, Central and Plateau. The Seagull Island Prospect Area is divided into the North and South Blocks. Majority of the coal samples sent and tested by Sasol-Lurgi were taken from the Tate Lake Prospect area.
A two phase exploration program is proposed. Phase One of the drilling program would be conducted in the Seagull Island Prospect Area North Block, Seagull Island Prospect Area South Block and Tate Lake Prospect Area Northeast Block. Phase Two of the drilling program would be conducted in the Tate Lake Prospect Area Central and Plateau blocks.
The NI 43-101 technical report can be seen online at http://www.westhawkdevelopment.com/doc/report/pdf/43101_tulita.pdf
Ellesmere Island (Nunavut)
The Company acquired 100% of the right, title and interest in coal exploration licenses for areas located southeast of Eureka, Nunavut Territory. The licenses contain a total of 245,915 acres (99,518.26 hectares). Based on the Company's exploration licenses encompassing approximately 55 percent of Gulf's exploration licenses, the Nunavut Report reveals that the Nunavut Prospect contains a potential exploration target of approximately 3.025 to 3.162 billion in-place tonnes, with quality ranking from sub-bituminous B to lignite.
Eureka, the nearest community is located along Slidre Fiord, eight kilometers northwest of the coal prospect. The Nunavut Prospect consists of two properties, the North Fosheim Peninsula Property located on the east side of Eureka Sound on Ellesmere Island and the May Point Property located on the west side of Eureka Sound on Axel Heiberg Island.
The NI 43-101 technical report can be seen online at http://www.westhawkdevelopment.com/doc/report/pdf/43101_nunavut.pdf
Currently, all exploration potential is conceptual in nature including quantity and grade. Insufficient exploration work has been done on the properties and all estimates are historical. It is uncertain if further exploration will result in discovery of a mineral resource.
Financing Update
West Hawk has finalized a fiscal agency agreement ("Agreement") with Union, to help the Company finance its growth plans in Canada and internationally.
Under the terms of the Agreement, Union will help the Company review corporate finance options and provide guidance with respect to proposed public and private debt or equity financings and act as a sponsor, should the Company apply for listing on the Toronto Stock Exchange (TSX). Union has committed to helping the Company maximize assets value through numerous methods. Furthermore, Union will assist the Company using its extensive contacts in the coal sector to bring expertise where required.
Clarification of May 15th, 2008 News Release
"West Hawk also announced today that its May 15, 2008 news release announcing an aggregate 4,250,000 options granted to directors and officers inadvertently stated the expiry date of the options as March 18, 2010. The correct expiry date of the options is March 18, 2013. There are no changes to the number of options granted or the exercise price."
On behalf of the Board of Directors,
Wm. Mark Hart, President and Chief Executive Officer
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Groundhog coal property in British Columbia, the Tulita coal property in the Northwest Territories, and the Nunavut coal 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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:
Wm. Mark Hart
West Hawk Development Corp.
President and Chief Executive Officer
(303) 524-1424
(303) 524-1285 (FAX)
Website: www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
S-BEES-BUMBLEBEE
16 years ago
June 12, 2008 - West Hawk signs Mou with Petrobras to jointly develop the Figure Four natural gas property
June 12, 2008 - Denver, Colorado, USA: West Hawk Development Corp (TSXV: WHD; Frankfurt: H5N) (the “Company”) is pleased to announce that it has signed a Memorandum of Understanding (“MOU” or “Agreement”) with Petrobras – Petroleo Brasileiro S.A (“Petrobras”) for a partnership to jointly develop on a fast track basis the Company’s Figure Four Natural Gas Project in the Piceance Basin, Colorado.
The MOU outlines the timeline, scheduling, and plans for the partnership and complete transfer of site operations to Petrobras, as well as providing a provision for near term expansions in the Piceance Basin, and other parts of the United States of America. During the month of June, Petrobras executives and engineers will visit Colorado and make a site visit to conduct a thorough review and assessment of the Figure Four Natural Gas Project. Petrobras, under a confidentiality clause of the MOU, has accessed key pertinent information related to the Gas Project and are satisfied with the quality of the project and its prospective upside. Petrobras has assigned key professionals and senior staff to its due diligence team. Upon the conclusion of these technical and commercial meetings, Petrobras will prepare an offer. If accepted, West Hawk and Petrobras will work together to reach an agreement and conclude the transaction in August.
“Petrobras is the 3rd largest company in the Americas and is among the 5 largest oil companies in the world. Their recently appointed new International Management Team is committed to develop quality oil and gas projects in stable regions of the world, including the United States, where they intend to invest $ 4.8 billion until year 2012 in upstream and downstream oil and gas projects. Petrobras is considering the Figure Four Project as a logical and strategic step to start operations in the Piceance Basin, the largest gas play in North America” commented Mr. Gonzalo Torres-Macchiavello President & CEO Americas.
This partnership will bring important financial resources, technology, know-how and a bench mark for the international oil and gas industry to the heart of the Piceance Basin” said Dr. Wm. Mark Hart President & CEO West Hawk Development Corporation.
“Petrobras is seriously examining the project as a very strong potential candidate to become our first natural gas project in the United States. We know the qualities of the Piceance Basin and the developments that are taking place there. Certainly, it is a place to be” Commented Mr. Jorge Luiz Zelada Petrobras International Business Director.
On behalf of the Board of Directors,
Wm. Mark Hart,
President and Chief Executive Officer
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.
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property located in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.
About Petrobras – Petroleo Brasileiro S.A: Petrobras is a fully integrated oil and gas company. Petrobras is the world most experienced company in deep off shore oil and gas wells. Also is very experienced in oil refining and gas production in different parts of the world. Currently Petrobras market value is approximately $ 290 billion where 50% of the company is owned by the Brazilian Federal Government and the remaining 50% are private investors. Their stock is traded in the NYSE, BOVESPA and MERVAL.
Contacts
North America
West Hawk Development, 303-524-1424
Email: news@westhawkdevelopment.com
lowpdop
16 years ago
Surprise you guys do not have much DD on the Arkoma project here; which could be generating 150-600 million annually starting in ~12 months if the resource/CAPEX look good. This recent PR with Lu'an is huge IMO, but Arkoma if all is good for a mine should be huge as well.
IMO with all these company developments and some follow through + current coal market/momo: WHD can be a 500 million to 1 billion market cap company in 12-16 months. WHD has 4/5 company making projects currently in the works, most with billion dollar partners.
Arkoma coal project DD:
From WHD PR, deducing from project description, coal quality from the coal beds in that region, and rail line placement--Arkoma project has a high probability of being in LeFlore County Oklahoma and Sebastian county Arkansas.
From USGS:
Potential Bituminous coal resource for entire LeFlore County Oklahoma:
1.93 Billion Bituminous short tonnes of coal using all coal beds
and
482 million Bituminous short tonnes using just the hartshone coal formations.
All Coal-Beds
http://energy.er.usgs.gov/temp/1212528924.htm
Just the Hartshone coal bed which has some of the best CBM rates in the country:
http://energy.er.usgs.gov/temp/1212529345.htm
Coal Presentations, Reports and Maps
Great presentation of the basin--
@http://www.ogs.ou.edu/coalpres.php
Download this PDF for reference:
Oklahoma Coalbed-Methane Activity, 2006 update
WHD's Arkoma coal project should be in LeFlore county Oklahoma and Sebastian county Arkansas, which is the tail of the "commercial coal belt" in eastern Oklahoma.
Lots of current CBM background and coal structural maps across the basin, in particular WHD's area; which IMO appears to be the best in the basin for coal quality. Pages/figures--6,7,8; and in particular 9,10,11 are of particular interest to the coal people--many maps and info for those that like CBM as well as coal with IP rates and placement across the basin.
Coal and Coalbed Methane
Coal is an organic-rich rock derived from plant material deposited in a swamp, marsh, or bog. Coal varies by grade (percentage of mineral impurities), type (organic composition), and rank (level of coalification). Rank describes the transformation from peat(unconsolidated plant remains) through lignite, sub bituminous, bituminous, semi anthracite, and anthracite coal (rock) from increasing burial pressure, temperature, and time.
The coalfield in eastern Oklahoma is divided into the northeast Oklahoma shelf and the Arkoma Basin based on physiographic and structural differences. The commercial coal belt contains coal beds >= 10 in. thick that are mineable by surface methods at depths < 100 ft and coal beds >=14 in. thick that are mineable by underground methods. The noncommercial coal-bearing region has limited information on coal thickness and quality or contains coals that are too thin, of low quality, or too deep for surface mining.
The age of commercial coal-bearing strata in the Oklahoma coalfield is Desmoinesian (Middle Pennsylvanian). Generalized stratigraphic columnsof the northeast Oklahoma shelf and Arkoma Basin show about 40 named and several unnamed coal beds and their range in thickness measured from outcrops, mines, and shallow core samples.
Coal rank,generalized for all coals at or near the surface, ranges from high-volatile bituminous in the northeast Oklahoma shelf and western Arkoma Basin to medium-volatile bituminous and low-volatile bituminous in the eastern Arkoma Basin in Oklahoma. Rank increases from west to east and with depth in the Arkoma Basin, attaining semi anthracite in Arkansas.
Remaining identified bituminous coal resources in beds = 10 in. thick total 8.09 billion short tons (1 short ton equals 2,000 pounds) in 19 counties in eastern Oklahoma, an area of approximately 8,000 square miles. About 1.6 billion short tons of bituminous coal reserves (the economically recoverable part of coal resources) remain in Oklahoma. Oklahoma ranks 19th of 32 coal-bearing states in the U.S. based on coal reserves. From 1873-2001, 281 million short tons of bituminous coal were produced from underground and surface mines in the Indian Territory and Oklahoma. Peak annual coal production was 5.73 million short tons in 1981, with smaller production peaks during and immediately following World War I and World War II.
There are many uses for coal, primarily in combustion (generation of electricity), carbonization (coke used to make steel), conversion(gasification and liquefaction), and industrial (process heat). Coal is used in Oklahoma in electric power plants and lime and cement kilns (OGS Information Series 9).
Coal generates and stores large quantities of natural gas (methane). Coal-bed methane activity in Oklahoma is in the northeast Oklahoma shelf and Arkoma Basin.
Potential coalbed methane resource: 1.58 to 3.55 TCF in place.
Introduction to the Arkoma Coalfield
Identified coal resources are present in an area of
approximately 8,000 square miles in 20 counties in
eastern Oklahoma. This area is within the southern
part of the Western Region of the Interior Coal Province
of the United States. The coal beds are of Middle
and Late Pennsylvanian age, 0.8–10 ft thick, 0.4–6.5%
in sulfur content, coking or non-coking, contain
11,400–15,000 Btu/lb, and are low (2–7%) in inherent
moisture. Oklahoma contains the most significant deposits
of bituminous coal west of the Mississippi
River and east of the Rocky Mountains. Although the
McClellan-Kerr Arkansas River Navigation System is
available for barging coal to international ports, most
of the coal production is shipped by truck or rail.
As of January 1, 1994, 8.1 billion short tons of remaining
coal resources have been identified; 76% are
in the Arkoma basin and 24% are in the northeast
Oklahoma shelf area. About 41% of the State’s coal resources
are low- and medium-volatile bituminous in
rank and are present in the Arkoma basin. About 1.6
million tons of coal was produced in 2003 by four mining
companies at 11 mines in seven counties.
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