CALGARY, ALBERTA–(Marketwired – April 5, 2016) – Hawk Exploration Ltd. (the “Corporation” or “Hawk”) (TSX VENTURE:HWK.A) announces that its Board of Directors has determined that it is timely, prudent and in the best interests of shareholders to initiate a formal process to seek value maximizing proposals with a view to enhancing shareholder value which may result in a corporate sale or a material asset sale transaction. The Board of Directors will work with management and the Corporation’s financial advisor to solicit, review and consider value maximizing proposals and ultimately determine whether any transaction is in the best interests of the Corporation and its shareholders. Macquarie Capital Markets Canada Ltd. has been engaged as exclusive financial advisor by the Board of Directors and will work with the Board of Directors in connection with this comprehensive review and analysis of value maximizing proposals.
Non-binding proposals will be due in May 2016. Given the nature of the process, the Corporation does not intend to provide updates until such time as the Board of Directors approves a definitive transaction, or otherwise determines that further disclosure is advisable. Hawk cautions that there are no guarantees that the process will result in a transaction, or if a transaction is undertaken, as to the terms or timing. The process to seek value maximizing proposals has not been initiated as a result of receiving any transaction proposal.
Hawk will continue to focus on its near and long term business plan, centered on maintaining capital spending within cash flow, growing production through organic growth, and a commitment to effective cost management. Hawk’s acreage has a low decline rate of approximately 10 percent per year which enables the Corporation to offset declines with modest capital spending, an advantage in the current low commodity price environment.
Hawk is an emerging company engaged in the exploration, development and production of conventional crude oil and natural gas in western Canada and is based in Calgary, Alberta. The Class A Shares of Hawk trade on the TSX Venture Exchange under the trading symbols of HWK.A.