News Release
West Hawk Development Corporation Update
July 18, 2007 - Vancouver, B.C.: West Hawk Development Corp. (the "Company") (TSX.v - WHD, Frankfurt - H5N) is pleased to announce that the Company has drilled the first four earning wells, required under the Figure Four Ranch Drilling and Development Agreement, for the 2007 year.
The Company, before drilling is resumed, will now focus on maximizing the production from these wells. Schlumberger will re-stimulate wells one and two. The slick water stimulation will include additional gas bearing strata and will be substantially larger than the previous stimulations. Schlumberger is also designing the hydraulic stimulation program for the fourth well.
The third well, previously stimulated by Schlumberger, is being cleaned up and brought on line. The large scale stimulation for the third well, employing more than 17,000 bbl of fluid and 1,000,000 pounds of sand, achieved the desired results. Petro-physics analysis indicates that the first four wells have estimated ultimate recoveries (EUR) exceeding the original NI 51-101 report projections.
Prior to the resumption of drilling, the company will make several changes to the drilling program as follows:
"Unfortunately, the startup process has been time consuming and costly, but the experience has given us the necessary knowledge to economically drill and produce the property" said John Reeves, Jr. CEO of West Hawk Energy, USA.
On behalf of the Board of Directors,
"Dr. Wm. Mark Hart"
Dr. Wm. Mark Hart, President and CEO
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 Tulita coal property in the Northwest Territories; the Groundhog coal property 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. The company has filed a National Instrument 43-101 Report on the Tulita coal property in the Northwest Territories. The company has also filed a National Instrument 43-101 Report on 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 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 Company, before drilling is resumed, will now focus on maximizing the production from these wells. Schlumberger will re-stimulate wells one and two. The slick water stimulation will include additional gas bearing strata and will be substantially larger than the previous stimulations. Schlumberger is also designing the hydraulic stimulation program for the fourth well.
The third well, previously stimulated by Schlumberger, is being cleaned up and brought on line. The large scale stimulation for the third well, employing more than 17,000 bbl of fluid and 1,000,000 pounds of sand, achieved the desired results. Petro-physics analysis indicates that the first four wells have estimated ultimate recoveries (EUR) exceeding the original NI 51-101 report projections.
Prior to the resumption of drilling, the company will make several changes to the drilling program as follows:
- The company will employ a smaller shallow-well rig to drill, case, and cement the first 2,500 to 3,000 feet of the well prior to moving the larger deep-well rig onsite to drill to total depth. A significant reduction in drilling cost and time utilizing the smaller rig is expected.
- The company will negotiate a long-term two year 24-well drilling contract for the deep-well rig, which is expected to reduce contract drilling cost via economies of scale. A drilling contractor and rig will be selected based on prior crew experience, safety record, and mistake free performance. Drilling delays were encountered on the previous wells due to severe weather, a broken bit, a twisted off bit assembly, a dropped bottom-hole assembly, drill string and casing problems. Experienced drilling crews and a long term committed drilling contractor are an integral part of eliminating drilling errors.
"Unfortunately, the startup process has been time consuming and costly, but the experience has given us the necessary knowledge to economically drill and produce the property" said John Reeves, Jr. CEO of West Hawk Energy, USA.
On behalf of the Board of Directors,
"Dr. Wm. Mark Hart"
Dr. Wm. Mark Hart, President and CEO
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 Tulita coal property in the Northwest Territories; the Groundhog coal property 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. The company has filed a National Instrument 43-101 Report on the Tulita coal property in the Northwest Territories. The company has also filed a National Instrument 43-101 Report on 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 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.
Contacts
North America
West Hawk Development, 303-524-1424
Email: news@westhawkdevelopment.com

