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WHD West Hawk Development Corp.

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Share Name Share Symbol Market Type
West Hawk Development Corp. TSXV:WHD TSX Venture Common Stock
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West Hawk Provides Investor's Update on 2007 Results and 2008 Plans

31/01/2008 6:21pm

Marketwired Canada


West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the
"Company") is pleased to provide a progress report on recent activities and
future plans from Dr. Wm. Mark Hart, President and Chief Executive Officer:


"Before discussing 2007 results and plans for 2008, I'd like to comment on the
Company's vision. West Hawk's management team is focused on building and growing
a clean energy gasification company that utilizes state-of-the-art technology
advancements in gasification, cooling, cleaning, and output product systems, and
incorporates the latest engineering design concepts in emission controls. The
Company believes that clean energy products can be profitably produced from coal
and other feed stocks, and West Hawk is positioning itself to drive and
implement this vision in 2008.


As a dynamic and emerging energy company, we have placed emphasis on assembling
a team of individuals capable of executing our plan to build tangible asset
value through strategic acquisitions, partnerships, and projects. In keeping
with this strategy, we have acquired a number of truly exciting projects. In
Canada, we hold coal licenses to three coal properties. Please refer to the NI
43-101 Reports at www.sedar.com for resource estimates. In the United States, we
have acquired drilling rights in the most prolific natural gas field, the
Piceance Basin, with vast estimated resources in place. In addition, our Company
continues to negotiate potential synergies to utilize our coal assets and our
technical expertise, for projects in the US, Canada, and China. We believe these
prospects will provide the foundation for accelerating coal gasification growth,
advancement of the Company's value, and provide the economies of the world with
clean forms of fossil fuels well into the future.


Each of these projects will mature over the next few years, and they all require
an intense amount of upfront effort to generate growth in cash flow.
Stakeholders in the Company must understand the value building philosophy, as
successful growth requires time and a sustained dedicated effort. Our team is
dedicated to this effort.


2007 Results

During 2007, our primary areas of focus were on the initial drilling of the
Figure Four natural gas property in Colorado, completing and filing the required
NI 43-101 technical reports for our Canadian coal properties, and developing
long term relationships with future West Hawk partners in the gasification
business. This was accomplished by securing two coal gasification contracts with
our major Chinese partner Lu'An, and by identifying the technology partner that
the Company intends to utilize for gasification, the New York Energy Group. As a
result of near-term business opportunities for the technology to be developed in
the United States, we evaluated three USA coal properties, two of which are
still under evaluation for future development.


At the Figure Four Project, West Hawk completed the drilling requirements of the
Drilling and Development Agreement (DDA) by drilling 4 deep wells to depths of
approximately 10,000 to 11,000 feet. Wells 1 and 2 are in production and
generating cash flow from a production zone that the Company was required to
test under the DDA. However, the Company plans to conduct further completion
work in the upper production zones of these wells in order to increase
production. When this work is completed, the Company believes that the wells
will produce at the commercial quantities that were originally expected, and
generate significantly more cash flow. Wells 3 and 4 have been fractured in the
upper production zones, and are in the completion phase. We are performing final
completion work on Well 3 and expect to bring it into commercial production in
the very near term. Completion work on Well 4 will start immediately after Well
3 is in production. Well 4 is not expected to be in commercial production for
several more weeks, and will be dependent upon how quickly the completion fluids
are recovered during the flow back process.


The results in 2007 were significantly impacted by drilling during winter
weather conditions, operational problems caused by an inexperienced contract
drilling crew, weight restrictions that were imposed on the County Road during
the Spring, which delayed the mobilization of completion equipment needed for
wells 1 and 2, and third-party delays in completing the pipeline connections on
the Rockies Express, which resulted in extremely low natural gas prices due to
pipeline overcapacity. Also during 2007, the Company received excellent marks
from an independent 3rd party who conducted a complete environmental report and
safety inspection on the Figure Four property.


Plans for 2008

The Company's plans for 2008 are focused on three primary fronts: the Figure
Four Project, a coal gasification project, and development of the Canadian coal
properties.


Figure Four

Although the Company encountered difficulties on the Figure Four Project in
2007, we continue to persevere, and expect much better results in 2008. The
Rockies Express Pipeline is now in commercial operation through Kansas and
prices for natural gas from the Piceance Basin have doubled. The future price
forecast projects gas prices to be over $6.50 per MCF throughout 2008.


The Company's objective in acquiring the rights to drill the 5,000 acre Figure
Four property in late-2006 was to generate a source of cash flow in order to
drive coal gasification projects forward. The capital investment required to
drill additional wells on the property and generate the cash flow that is
required for gasification projects, has been very difficult to obtain from
financing institutions. Although the property area covered under the DDA is
adjacent to other wells in production, the property is considered by financial
institutions to be in a new production area. The Company will need to have the
existing four wells in production for several months to demonstrate production
quantities and minimize the investment risk, before additional financing is
obtained from lending institutions. Although additional capital investment in
the project is expected to decline as cash flow from future well production is
reinvested, in the near term, the Company must continue to raise capital in the
equity market or attract additional investors in the project, in order to meet
existing obligations, and fund future drilling requirements.


Coal Gasification

West Hawk has partnered with the New York Energy Group (NYEG) because we believe
that both companies share a common vision as a clean energy company. West Hawk
has evaluated coal/biomass/waste gasification technologies and decided to
develop gasification projects with a technology partner that is ready to build a
plant that incorporates advancements in traditional coal gasification, and to
demonstrate that coal can be converted into clean energy products on a
commercial scale. West Hawk's Management believes that the NYEG technology is
more efficient and cleaner than other competing technologies. As a result, West
Hawk has signed a Letter of Intent with NYEG to acquire a partial interest in
NYEG's first gasification plant site. West Hawk will announce details regarding
this project in the near future. The synergistic relationship between West Hawk
and NYEG will open many doors and opportunities for both companies to
demonstrate the economic viability of this technology. Coal and biomass
gasification represents the future of the Company, and in Management's view, can
help meet the world's future demand for clean energy products for the next
several decades. Management's view is based on the abundance of the world's coal
resources, which are generally believed to be 26 times more than oil and gas
resources, the strategic location of coal resources around the world on all
continents, and the belief that coal is the lowest cost feed stock for
gasification. New gasification technology allows coal the ability to meet all
KYOTO Protocol current and future clean air emission requirements. Coal,
biomass, and waste feedstock can also be blended together in the gasification
process to produce clean energy commercial products to help the world solve
environmental issues including global warming, and enhance the standard of
living for all people.


Canadian Coal Properties

Among the coal properties that have been secured by West Hawk, a priority has
been placed on the development of the Groundhog property, located in British
Columbia. The Groundhog property is believed to be one of the last undeveloped
world-class coal deposits of anthracite/metallurgical coal, the highest quality
coal available. The Company is currently working on an updated property
development plan that it intends to implement in 2008. Details on progress,
including a financing plan, will be announced in the near future.


The development of West Hawk's coal assets in the Northwest Territories of
Canada, near Tulita, remains an important objective, and has received
international attention. The property is located adjacent to the proposed
multi-billion dollar Mackenzie Valley Pipeline, which is being spearheaded by
Imperial Oil. West Hawk's objective for the property is to develop a mine for
the coal feed stock and construct one of the world's largest coal-to-gas
processing facilities. The coal was tested by SASOL / LURGI of South Africa, and
is suitable for gasification.


Please refer to the NI 43-101 reports at www.sedar.com for more information on
the Company's Canadian coal properties.


I thank you for your patience as the Company continues to grow, and look forward
to serving your interests in the future. Before closing, I would like to briefly
summarize the background and experience of our management team and supporting
staff that are driving the Company's clean energy vision going forward."


Roger A. Baer, Chief Financial Officer

Mr. Baer has over 25 years of financial experience in the minerals and natural
resource industries. He is a Certified Management Accountant and has held senior
positions with Newmont Mining, Cyprus Amax Minerals, Kennecott Energy and Amoco
Pipeline Co. Mr. Baer's education includes an accounting degree from Illinois
State University and an MBA from the University of Phoenix.


Dr. Jinsheng Chen, President and CEO of Asian Operations

Dr. Chen was born and raised in China. After completing his engineering degree,
he moved to the United States where he completed an MS and PhD in Mining
Engineering. He has over 25 years of experience in coal mining and the energy
business. Dr. Chen has held senior positions with Foundation Coal Company, RAG
American Coal, Cyprus Amax Minerals, and Asian American Coal Company. Dr. Chen's
education includes mining engineering degrees from the Jiaozuo Mining Institute
in China and West Virginia University, and a Ph.D. in mineral engineering from
West Virginia University.


Gonzalo Torres Macchiavello, President and CEO of North American Operations

Mr. Torres Macchiavello has over 20 years of experience in the energy and
construction business. He has held senior positions with NRG Energy, AES
Corporation, Pennsylvania Power & Light, Vattenfall Sweden, SARCOAL Energy, and
EMSA Construction Company in Brazil. He also has served as a board member of
different energy companies. Mr. Torres Macchiavello's education includes degrees
in business administration and public administration from the University of
Brasilia (UnB) in Brazil, and an MBA from the Getulio Vargas University in Sao
Paulo, Brazil.


Gary Wilson, General Manager of Canadian Operations

Mr. Wilson has over 35 years of experience in the energy industry. Mr. Wilson
has held senior positions in operations and executive management roles within
B.C. Hydro, Canada. Mr. Wilson's education includes a degree in accounting and
finance.


Andrew Lee, Manager, Corporate Communications

Mr. Lee has over 15 years of experience in the communication field in various
segments of the world from North America throughout Asia. Andrew is a main point
of contact for West Hawk shareholders throughout the world. He completed his
undergraduate degree from the University of British Columbia.


Chuck Rogers, Field Manager, Colorado Gas Project

Mr. Rogers has over 10 years of experience in natural gas drilling and
completion activities. Mr. Rogers has worked for Schlumberger and several other
oil field service companies. He served in the United States Military, and has a
degree from Central Texas College.


Aaron J. Goss, Assistant to North American President

Mr. Goss has over 7 years of experience. Aaron has worked at the Figure Four
site, and has provided support on the Company's coal gasification projects. He
is currently completing his education.


Dr. Wm. Mark Hart, President and CEO, West Hawk Development

Dr. Hart has over 34 years of experience in the mining and energy business. He
has held senior positions with Newmont Mining, NRG Energy, Cyprus Amax Minerals,
AEP - American Electric Power, and CONSOL Energy. He also worked as an
electrician and repairman for 7 years. Dr. Hart's education includes a PhD in
mining engineering from the Colorado School of Mines, MS in Engineering in Mines
from West Virginia University and an MBA. He has undergraduate degrees in
Mechanical Engineering Technology and Mining Engineering Technology, and an AS
in Electrical Engineering Technology from Fairmont State University.


Richard F. Braun, Director

Mr. Braun is an independent director, and has over 40 years of experience in the
oil and gas, and chemical process industries. He has held mid-level and
executive positions with FMC Corporation, International Energy Funds GmbH, and
Fuel Resources Development Corporation. Mr. Braun's education includes graduate
work on an MBA at the University of Oregon and a degree in mechanical
engineering from Stanford University.


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 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.


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