Iteration Energy Ltd (fka ITXFF)

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Amaunet

05/15/06 3:14 PM

Post #206

Iteration Energy announces March 31, 2006 quarter end results
11:11 EDT Monday, May 15, 2006

(All amounts are in Canadian dollars, unless stated otherwise)

CALGARY, May 15 /CNW/ - Iteration Energy Ltd. (TSX-ITX) ("Iteration" or the "Company") announced today its financial and operating results for the quarter ended March 31, 2006.

The quarter ended March 31, 2006 was a period of continued growth for the Company. Production at March 31, 2006 increased 7% from production levels at the end of December 2005. The Company successfully completed two acquisitions which not only significantly increased our land base, but added 180 boed of production. The 3D seismic program at Boundary Lake was completed in March 2006 and has identified a number of high quality drilling locations which will be drilled after breakup. Management is continuing its focus on controlling operating costs and general and administrative expenses, which has resulted in significant decreases in operating and general and administrative costs per boed, as compared to the quarter ended March 31, 2005.

HIGHLIGHTS FOR THE QUARTER

The major highlights of the three months ended March 31, 2006 were as follows:

- Drilled 11.5 net wells of which 8.9 were cased for gas, 1 for oil and
1.6 were dry holes.

- Capital program of $30 million including the land and property
acquisitions described below.

- Average production for the quarter was 3,750 boed.

- March 31, 2006 production of 4,050 boed with an additional 600 boed
tested behind pipe which will be brought on production after break
up.

- Completed a 3D seismic program at Boundary Lake.

- Expanded the Company's land base to 155,000 net acres with another
52,000 net acres being earned this summer.

- An acquisition at Bernadet in Northeast British Columbia added
approximately 30 boed of production and 8,500 net acres of land for a
net consideration of approximately $3.6 million.

- An acquisition at Rigel, to the west of Boundary Lake, was completed
in March 2006. This resulted in approximately 150 boed of production
and an additional 6,500 net acres of land for a net consideration of
approximately $5 million.

SUMMARY OF RESULTS

Year over year comparative results (excluding the Lavoy area, which was sold during the first quarter of 2005) are as follows:

<<
-------------------------------------------------------------------------
Three Months ended
March 31,
-------------------------------------------------------------------------
2006 2005
-------------------------------------------------------------------------
Production (boed) 3,750 3,146
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Realized commodity price ($/boe) 51.61 41.15
-------------------------------------------------------------------------
Operating netbacks ($/boe) 30.93 22.06
-------------------------------------------------------------------------
Production expense ($/boe) 6.85 9.09
-------------------------------------------------------------------------
General and admin expense ($/boe) 2.31 3.41
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Production revenue before royalties ($M) 17,417 11,937
-------------------------------------------------------------------------
Funds from operations ($M)(1) 10,107 3,869
-------------------------------------------------------------------------
Funds from operations per basic share ($)(2) 0.21 0.09
-------------------------------------------------------------------------
Funds from operations per fully diluted
share ($)(2) 0.19 -
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net earnings (loss) ($M) 2,649 (3,222)
-------------------------------------------------------------------------
Earnings (loss) per basic share ($)(2) 0.05 (0.07)
-------------------------------------------------------------------------
Earnings (loss) per fully diluted share ($)(2) 0.05 -
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net undeveloped land (M acres) 92 70
-------------------------------------------------------------------------
(1) Management uses funds from operations and funds from operations per
share (before changes in non-cash working capital and asset
retirement expenditures) to analyze operating performance and
leverage. Funds and funds per share as presented do not have any
standardized meaning prescribed by Canadian GAAP and therefore they
may not be comparable with the calculation of similar measures for
other entities. Funds as presented is not intended to represent
operating cash flow or operating profits for the period nor should it
be viewed as an alternative to cash flow from operating activities,
net earnings or other measures of financial performance calculated in
accordance with Canadian GAAP. All references to funds and funds per
share throughout this report are based on cash flow from operating
activities before changes in non-cash working capital and asset
retirement expenditures.
(2) For periods with positive net earnings, per share amounts are based
on weighted average basic and diluted common shares outstanding for
the period. For periods with a net loss, per share amounts are based
on basic common shares outstanding for the period.

Outlook for 2006

The foundation work to return the Company to active operations and profitability was completed in 2005. The major focus is now on adding new drilling locations and prospective lands in order to grow production through an ongoing exploitation and exploration program. The Company is aggressively pursuing acquisition, landsale and farm-in opportunities in its core areas. The total land base has been increased to 167,000 net acres as of May 5, 2006 with a further 52,000 net acres currently being earned. The planned 2006 capital program of $64 million is expected to result in a year over year production growth, net of the Lavoy disposition, of approximately 35% to 40% with average production expected to be in the range of 4,000 to 4,200 boed. Production as of May 1, 2006 was approximately 4,100 boed with an additional 450 boed tested behind pipe waiting to be brought on production.

The 3D seismic program at Boundary Lake which was expected to be completed in December 2005 but delayed due to weather conditions, was completed during March 2006. This has allowed us to identify several high quality locations which will be drilled after break-up. The Company has also assembled a number of other opportunities and prospective lands in Northeast British Columbia, Western Alberta and East Central Alberta. This will give us the opportunity to increase production in several areas and to mitigate the risks associated with being too heavily dependent on one main area.

2005 Annual General Meeting

Iteration will hold its AGM at 3:00 pm on June 7, 2006 at the Metropolitan Centre, 333 4th Ave SW Calgary, Alberta.

Advisory - Forward-Looking Information

This discussion and analysis was prepared on May 5, 2006 and is management's assessment of Iteration's historical financial and operating results. The reader should be aware that historical results are not necessarily indicative of future performance. This discussion and analysis contains forward-looking statements relating to future events or future performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should"," expects", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Iteration. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed below, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Company undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.

In particular, this discussion contains forward-looking statements and information pertaining to the following:

- The quantity and recoverability of our reserves;
- The timing and amount of future production;
- Prices for natural gas produced;
- Operating and other costs;
- Business strategies and plans of Management;
- Supply and demand of natural gas;
- Expectations regarding our ability to raise capital and to add to our
reserves through acquisitions as well as exploration and development;
- The focus of capital expenditures on development activity rather than
exploration;
- The sale, farming in, farming out or development of certain
exploration properties using third party resources;
- The use of development activity and acquisitions to replace and add
to reserves;
- The impact of changes in natural gas prices on cash flow after
hedging;
- Drilling plans;
- The existence, operations and strategy of the commodity price risk
management program;
- The approximate and maximum amount of forward sales and hedging to be
employed;
- The Company's acquisition strategy, and the criteria to be considered
and the benefits to be derived;
- The impact of Canadian federal and provincial governmental regulation
on the Company relative to other issuers of similar size;
- Our treatment under governmental regulatory regimes;
- The goal to sustain or grow production and reserves through prudent
management and acquisition;
- The emergence of accretive growth opportunities; and
- The Company's ability to benefit from the combination of growth
opportunities and the means to grow through the capital markets.

Our actual results could differ materially from those anticipated in our forward-looking statements as a result of the risk factors set forth below and elsewhere in this MD&A which include but are not limited to:

- Volatility in market prices for natural gas;
- Risks inherent in our operations;
- Uncertainties associated with estimating reserves;
- Competition for, among other things: capital, acquisitions of
reserves, undeveloped lands and skilled personnel;
- Incorrect assessments of the value of acquisitions;
- Geological, technical, drilling and process problems;
- General economic conditions including fluctuations in the price of
natural gas;
- Royalties payable in respect of Iteration's production;
- Governmental regulation of the oil and gas industry, including
environmental regulation;
- Fluctuation in foreign exchange or interest rates;
- Unanticipated operational events that can reduce production or cause
production to be shut-in or delayed;
- Stock market volatility and market valuations; and
- The need to obtain required approvals from regulatory authorities.

Many of these risk factors and uncertainties are discussed in further detail in the Management's Discussion and Analysis and the Annual Information Form for the year ended December 31, 2005, which is available through the internet on the Company's SEDAR profile at www. sedar.com. The above list of risk factors should not be construed as exhaustive.

The TSX has not reviewed this press release and does not accept
responsibility for the accuracy of any of the data presented here-in.

Iteration Energy Ltd

Iteration (www.iterationenergy.com) is an Alberta based corporation engaged in the business of exploring for and developing oil and natural gas reserves in Western Canada and acquiring natural resource properties. Iteration's common shares are listed on the Toronto Stock Exchange under the symbol "ITX".

>>

%SEDAR: 00002576E

For further information: Mr. Brian Illing, President and CEO, or Mr. Sean Johnson, CFO at (403) 261-6883

Amaunet

03/29/06 1:04 PM

Post #205

Iteration Energy Ltd. posts $3.1M profit in 2005, reversing $4.2M loss

Wednesday, March 29, 2006 07:55 ET

CALGARY, Mar 29, 2006 (The Canadian Press via COMTEX) -- Iteration Energy Ltd. (TSX:ITX) reported a profit of $3.1 million for 2005 on Tuesday, reversing a year-earlier loss of $4.2 million.
The Calgary-based firm, which changed its name from Hawker Resources Inc. last July, said net earnings amounted to six cents per basic share, compared with a loss of 10 cents per basic share in 2004.
Revenue for the year rose to $57.5 million from $46.2 million a year earlier.
The financial results excluded properties in the Lavoy area, which was sold in March 2005 for $85 million.
Including the Lavoy properties, net earnings amounted to $3.8 million, reversing a loss of $1.5 million in 2004.
Production for the year fell to 2,970 barrels of oil equivalent per day from 3,227 barrels in 2004. Proved plus probably reserves rose to 6.1 million barrels of oil equivalent from 5.7 million barrels in 2004.
"The company's planned capital program for 2006 is $64 million, which will be almost entirely financed by cash on hand and cash flow from operations," Iteration Energy said in a release.
"The balance of the program will be financed by a revolving credit facility. The company is currently in discussions with three Canadian chartered banks with
the intention of establishing the new credit facility."
Prior to the earnings release, the company's shares lost six cents to close at $4.44 on the Toronto Stock Exchange.
The online source for news sports entertainment finance and business news in Canada
Copyright (C) 2006 The Canadian Press (CP), All rights reserved

http://www.knobias.com/individual/public/news.htm?eid=3.1.bbb1d9a838d66a6a9430b03e8e76fb3a83d372bf42...

Amaunet

03/29/06 1:00 PM

Post #204

Iteration Energy Ltd. announces 2005 year end results and filings under National Instrument 51-101 - standards of discloser for oil and gas activities

http://www.knobias.com/individual/public/news.htm?eid=3.1.0d65b293dc0102f59d7c530f3ee6d1a0520f41019d...

Golden Cross

03/08/06 10:23 AM

Post #203

Re: #202: @Amaunet - I did talk to him that one time

with that cash and the costs on at least the otcbb? I don't think it is that big a deal if you look at the requirements needed...thnx and GLTY

Amaunet

03/08/06 10:19 AM

Post #202

Re: #201: @Golden Cross - $11 mil working cap...they should be drilling...I just

I did talk to him that one time when he took control. He didn’t realize how bad the pinks are but wanted to get out of the cost of filing down here. I think back to the NYSE one day.

-Am

Mr. Brian Illing, the new President and CEO of Hawker, has 28 years of experience as a geologist, manager and executive in the oil industry. He was Executive Vice President at Canadian Natural Resources Ltd. ("CNRL"), and led its exploration department from 1993 to late 2003. He was the hands-on technical leader during this time and significantly contributed to the growth of CNRL from approximately 35,000 BOE/d to over 450,000 BOE/d. Mr. Illing was CNRL's prime technical reviewer and decision-maker for growth projects, and oversaw the drilling of more than 6,000 wells throughout the WCSB, with a success rate greater than 90%. Mr. Illing completed his B.Sc. (Geology) and M.Sc. (Geophysics) degrees in England at Durham University and Birmingham University, respectively.

Golden Cross

03/08/06 9:59 AM

Post #201

Re: #200: @Amaunet - Illing was unhappy with the first quarter, probably

$11 mil working cap...they should be drilling...I just noticed this co yesterday and couldn't find out that much but am going to DD it and go over all I can find and may just give him a call... Sounds good... Only thing against it for me right off is being a Pink but I do own some that have potential...

have you ever talked to him...GLTY

You might want to look at the Oil and Gas Pipeline board I started yesterday.. we are going to be following Iteration and many others

Amaunet

03/08/06 9:25 AM

Post #200

Re: #199: @Golden Cross - You still following this one?

Illing was unhappy with the first quarter, probably a contributing factor to the downward price.

I think the analysts are looking at his reputation and the obstacles that he has surmounted to even get to the first quarter.

Plus the land base and prospect inventory have been significantly expanded and expected 2006 average production is approximately 35% greater than 2005.

Zero debt working capital of $11 million.

I talked to Illing by phone when he first took over and he told me when he grows the company he would get us off the pinks but every cent at the moment was going into drilling and turning the company around.

You might want to call him.

I will stay long and see if he can reach anywhere near the price share of Canadian Natural.

-Am

10:13 AM ET
Business Morning with Jim O'Connell
Natural Gas Outlook
Kim Page, energy analyst, Wellington West Capital Markets

You can view the archived bit on the ROBtv site. ITX is Kim Page's top pick in the sector.

http://www.robtv.com/shows/past_archive.tv?day=thur

Others are more bullish, such as analyst Kim Page of Wellington West Capital Markets Inc. who rates Iteration "strong buy." In an interview, he said the company remains relatively unknown, calling it "the cheapest stock on the board."

March 2006 Presentation

http://www.iterationenergy.com/ir/financial_reports_pres.html

Golden Cross

03/07/06 11:36 PM

Post #199

Re: #198: @Amaunet - Iteration Energy announces second quarter 2005 results

You still following this one?

Amaunet

08/12/05 1:08 PM

Post #198

Iteration Energy announces second quarter 2005 results
Friday August 12, 2:44 am ET

(All amounts are in Canadian dollars, unless stated otherwise)
CALGARY, Aug. 12 /CNW/ - Iteration Energy Ltd. (TSX-ITX) (formerly Hawker Resources Inc.) ("Iteration" or "the Company") announced today its financial and operating results for the three and six months ended June 30, 2005.
During the quarter, management completed its technical review of the properties, implemented initiatives to reduce operating costs, and streamlined general and administrative processes. As a result, the Company is well poised for its projected exploration and development program to be undertaken in the second half of the year. At the end of the quarter, the Company had in excess of $29.0 million cash which, together with cash flow, will be more than sufficient to fund the currently defined exploration and development program for the balance of the year.

HIGHLIGHTS AND OUTLOOK FOR 2005

- Completed technical review of existing properties
- Drilling program starting on existing properties
- Budgeted third and fourth quarter CAPEX program of $36 million will be
covered from existing cash and cash flow from operations
- Zero debt
- Increased operating netbacks resulting from an increase in commodity
prices, reduced operating costs and reduced general and administration
expense
- Production expected to increase to an average of 4,030 BOE/d in the
fourth quarter

With the elimination of the debt and the acquisition of Iteration Energy Inc., the Company is poised for growth in the second half of 2005. A detailed technical review has shown numerous opportunities for reserve and volume additions on the Company's existing properties. The resulting drilling and recompletion program has been started and will continue into 2006. The Company is also pursuing new opportunities through landsales, farm-ins and strategic acquisitions.
Operating costs have been reduced during the quarter, partly as a result of the reversal of prior period operating cost accruals. However, as a result of the cost saving initiatives implemented by management, operating costs are expected to average approximately $6.00 per BOE for the second half of the year. Staff realignment has now been completed and general and administrative costs per BOE are expected to average approximately $3.00 per BOE for the second half of the year.

SUMMARY OF RESULTS

Year over year comparative results (excluding the Lavoy area, which was sold during the first quarter) are as follows:

-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
-------------------------------------------------------------------------
2005 2004 2005 2004
-------------------------------------------------------------------------
Production (BOE/d) 2,539 3,561 2,897 3,305
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Realized commodity price per BOE $ 47.84 $ 40.25 $ 43.90 $ 40.82
-------------------------------------------------------------------------
Operating netbacks per BOE $ 34.65 $ 23.44 $ 27.31 $ 24.24
-------------------------------------------------------------------------
Production expense per BOE $ 2.88 $ 6.29 $ 5.99 $ 5.84
-------------------------------------------------------------------------
General and admin expense per BOE $ 4.35 $ 4.77 $ 5.17 $ 4.75
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Production revenue before
royalties ('000's) $ 11,052 $ 13,043 $ 23,017 $ 24,422
-------------------------------------------------------------------------
Funds from operations ('000's)(1) $ 6,917 $ 9,471 $ 16,284 $ 18,600
-------------------------------------------------------------------------
Funds from operations per basic
share $ 0.12 $ 0.23 $ 0.31 $ 0.46
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net earnings (loss) $ 473 ($ 382) ($ 2,493) ($ 1,079)
-------------------------------------------------------------------------
Earnings (loss) per basic share $ 0.01 ($ 0.01) ($ 0.05) ($ 0.03)
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Debt ('000's) 0 66,668
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Net undeveloped land ('000's acres) 68 87
-------------------------------------------------------------------------

(1) Management uses funds flow from operations and funds flow from
operations per share (before changes in non-cash working capital and
asset retirement expenditures) to analyze operating performance and
leverage. Funds flow and funds flow per share as presented do not
have any standardized meaning prescribed by Canadian GAAP and
therefore they may not be comparable with the calculation of similar
measures for other entities. Funds flow as presented is not intended
to represent operating cash flow or operating profits for the period
nor should it be viewed as an alternative to cash flow from operating
activities, net earnings or other measures of financial performance
calculated in accordance with Canadian GAAP. All references to funds
flow and funds flow per share throughout this report are based on
cash flow from operating activities before changes in non-cash
working capital and asset retirement expenditures.

Forward Looking Statements

Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers and ability to access sufficient capital from
internal and external sources; as a consequence, actual results may differ
materially from those anticipated. The Company assumes no obligation to update
the forward-looking statements or to update the reasons why actual results
could differ from those contemplated by the forward-looking statements.

The TSX has not reviewed this press release and does not accept
responsibility for the accuracy of any of the data presented herein.

Iteration Energy Ltd

Iteration (www.hawkerinc.com) is an Alberta based corporation engaged in
the business of exploring for and developing oil and natural gas reserves in
Western Canada and acquiring natural resource properties. Iteration's common
shares are listed on the Toronto Stock Exchange under the symbol "ITX".

MANAGEMENT'S DISCUSSION AND ANALYSIS
August 10, 2005

The following is Management's Discussion and Analysis (MD&A) of Iteration
Energy Ltd. (formerly Hawker Resources Inc.) ("the Company or Iteration")
operating and financial results for the quarter ended June 30, 2005 as well as
information and estimates concerning the Company's future outlook based on
currently available information. This discussion should be read in conjunction
with Iteration's unaudited consolidated financial statements for the three and
six months ended June 30, 2005 and the audited consolidated financial
statements for the year ended December 31, 2004, together with accompanying
notes. Readers should also refer to Iteration's 2004 Annual Information Form
and Management's Discussion and Analysis dated March 23, 2005 for the year
ended December 31, 2004. All financial information is reported in Canadian
dollars and in accordance with Canadian generally accepted accounting
principles (GAAP) unless noted otherwise.
Certain amounts in prior periods have been reclassified to enable
comparison with the current period's presentation.
Natural gas converts to crude oil equivalent at a ratio of six thousand
cubic feet to one barrel.
Additional information about Iteration Energy Ltd. (formerly Hawker
Resources Inc.) filed with Canadian securities commissions, including periodic
quarterly and annual reports and the Annual Information Form (AIF), is
available on-line at www.sedar.com.

Financial and Operating Highlights

The Lavoy property was disposed of on March 24, 2005, so the production
from the Lavoy area has been excluded from prior periods for comparison
purposes. The Lavoy financial results, which have been excluded, by period,
were as follows:

-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
-------------------------------------------------------------------------
($ Cdn thousands, except
as noted) 2005 2004 2005(1) 2004
-------------------------------------------------------------------------
Operating
Gas Production
Total natural gas (bcf) - 1.2 1.3 2.5
Daily average natural gas (mcf/d) - 13,527 7,041 13,905
Average price ($/mcf) - $6.16 $6.54 $6.25

Oil and Liquids Production
Total oil and liquids (Mbbls) - 2 .8 5
Daily average oil and liquids
(bbls/d) - 24 4 29
Average price oil and liquids
($/bbl) - $33.07 $23.25 $28.62
-------------------------------------------------------------------------

Daily Average Production (BOE/d) - 2,278 1,178 2,346

Revenue
Gas revenue - 7,584 8,335 15,726
Oil and liquids revenue - 71 18 150
-------------------------------------------------------------------------
Total Revenue 7,655 8,353 15,876
-------------------------------------------------------------------------

Expenses
Royalties - 1,783 1,600 4,088
Operating costs - 588 757 1,311
--------------------------------------
- 2,371 2,357 5,399
--------------------------------------
Net Production income - 5,284 5,996 10,477
--------------------------------------

--------------------------------------
Net back per BOE $25.49 $28.13 $24.67

-------------------------------------------------------------------------

(1) Production from the Lavoy property has only been included in the
financial statements for the period from January 1, 2005 to March 24,
2005. The daily average natural gas and oil/liquids production
reflected above represents production for the period the property was
owned, averaged over the six-month reporting period. Lavoy average
daily production in 2005 for the period from January 1, 2005 to
March 24, 2005 was as follows:

Natural gas (mcf/d) 15,355
Oil and liquids (bbl's/d) 9
Daily average production (BOE/d) 2,568

Financial Highlights (excluding Lavoy area, as noted above,
except as noted otherwise)

-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
-------------------------------------------------------------------------
($ Cdn thousands, except
as noted) 2005 2004 2005 2004
-------------------------------------------------------------------------
Financial
Production revenue before royalties 11,052 13,043 23,017 24,422
Per Share(1) 0.22 0.32 0.41 0.60

Funds from operations(3) 6,917 9,471 16,284 18,600
Per Share ($)(1) 0.14 0.23 0.35 0.46

Net earnings (loss) 473 (382) (2,493) (1,079)
Per Share ($)(2) 0.01 (0.01) (0.05) (0.03)

The following amounts include
Lavoy transactions:
Total assets 148,612 195,616
Debt outstanding, net of working
capital - 66,668
Capital expenditures
Exploration, development and other 3,283 3,394 8,489 26,379
Acquisitions - 164 20,667 12,709
-------------------------------------------------------------------------
Shares Outstanding (thousands)
Common shares June 30 48,822 41,002
Common shares August 3, 2005 48,822 -
Weighted average - basic 48,822 41,022 46,312 40,543
Weighted average - fully
diluted(4) 50,628 - - -
-------------------------------------------------------------------------
Warrants June 30 5,000 -
-------------------------------------------------------------------------
Stock options June 30 4,858 843
-------------------------------------------------------------------------
Stock options August 3, 2005 4,852
-------------------------------------------------------------------------

(1) Based on weighted average basic and fully diluted common (in periods
of net earnings), Class A common shares and warrants outstanding for
the period.

(2) For periods with positive net earnings, per share amount based on
weighted average basis and fully diluted common, Class A common
shares and warrants outstanding for the period. For periods with a
net loss, per share amount based on basic common and Class A common
shares outstanding for the period.

(3) Management uses funds flow from operations and funds flow from
operations per share (before changes in non-cash working capital and
asset retirement expenditures) to analyze operating performance and
leverage. Funds flow and funds flow per share as presented do not
have any standardized meaning prescribed by Canadian GAAP and
therefore they may not be comparable with the calculation of similar
measures for other entities. Funds flow as presented is not intended
to represent operating cash flow or operating profits for the period
nor should it be viewed as an alternative to cash flow from operating
activities, net earnings or other measures of financial performance
calculated in accordance with Canadian GAAP. All references to funds
flow and funds flow per share throughout this report are based on
cash flow from operating activities before changes in non-cash
working capital and asset retirement expenditures.

(4) Weighted average - fully diluted common shares are not reported for
the three months ended June 30, 2004, or the six months ended
June 30, 2004 and 2005, as the Company reported a net loss for those
periods.

Operating Highlights (excluding Lavoy area, as noted above,
except as noted otherwise)

-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
-------------------------------------------------------------------------
($ Cdn thousands, except
as noted) 2005 2004 2005 2004
-------------------------------------------------------------------------
Operating
Gas Production
Total natural gas (bcf) 1.3 1.6 2.9 3.1
Daily average natural gas
(mcf/d) 13,967 17,950 15,791 17,252
Average price ($/mcf) 7.90 6.80 7.20 6.87

Oil and Liquids Production
Total oil and liquids (Mbbls) 19.2 51.3 48.0 77.9
Daily average oil and liquids
(bbls/d) 211 569 265 430
Average price oil and liquids
($/bbl) 52.78 37.39 50.73 38.21
-------------------------------------------------------------------------

Daily Average Production (BOE/d) 2,539 3,561 2,897 3,305

Land
Undeveloped land holdings,
(thousands of net acres) 68 87

-------------------------------------------------------------------------
Drilling (including Lavoy)
Wells drilled (net)
Gas .2 9 2.5 27
Oil - 2 - 3
Service - - - -
Dry - 1 .5 2
Total .2 12 3.0 32
Success rate (%) 100 92 83 94
-------------------------------------------------------------------------

Iteration Overview

Iteration is a Canadian oil and gas company with core assets at Boundary
Lake in Northeast British Columbia and Wild River, Cold Lake, Chigwell and
Granlea in Alberta.
The Company strives to operate its properties whenever possible and to
maintain high working interests. Iteration believes this high level of
operatorship can translate to controlling costs, timing of capital outlays and
projects as well as providing competitive advantages for future opportunities.
On July 7, 2005, with the approval of the Board of Directors, Hawker
Resources Inc. changed its name to Iteration Energy Ltd. The trading symbol
for Iteration also changed to ITX.
On March 22, 2005, Iteration announced that it had concluded its
strategic review process and that it had entered into two transactions that
provide the Company with a strong foundation for future growth. The two
transactions were Iteration's acquisition of Iteration Energy Inc., a
privately held oil and natural gas company, which provided Iteration with a
new, highly experienced senior management team; and Iteration's divestiture of
its non-operated Lavoy area assets for net cash consideration of $84.5 million
to two unrelated third parties.

Acquisition of Iteration Energy Inc.

Pursuant to a share purchase agreement dated March 20, 2005, the Company
purchased on March 21, 2005 all of the issued and outstanding shares of
Iteration Energy Inc. in exchange for the issuance of 5,750,000 common shares
of Iteration and 5,000,000 performance warrants. The 5,750,000 shares of
Iteration are subject to an escrow agreement and will be released as to a
third of the issued shares on each of March 20, 2006, 2007 and 2008,
respectively. The performance warrants have a term of 42 months, an exercise
price of $2.90 per share, and are exercisable only if Iteration's share price
trades above $4.50 per share on a weighted average basis for a period of more
than 45 consecutive calendar days within the next three and one half years.
The warrants vested May 7, 2005. In conjunction with this acquisition, the
Company granted 4,610,000 stock options with an exercise price of $2.90 to
employees of Iteration Energy Inc. that joined Iteration. The stock options
vest over a three-year period and expire after five years.
At the time of the acquisition of Iteration Energy Inc., the assets of
Iteration Energy Inc. included approximately $2.2 million in cash. It was also
a condition of the transaction that certain individuals of Iteration Energy
Inc. sign employment contracts with the Company. The management team acquired
brings extensive technical and operational expertise in the Western Canadian
Sedimentary Basin.

Divestiture of Lavoy Area Assets

Pursuant to two asset sale agreements dated March 21, 2005, Hawker sold
its Lavoy area assets to two unrelated third parties for cash consideration
totalling $85.0 million, with an effective date of January 1, 2005. The net
proceeds received from the asset sale was $84.5 million after adjustments for
operating results and capital expenditures between the effective date and the
closing date of March 24, 2005.

Quarterly Financial Data (excluding Lavoy (except for 2003),
as noted above)

($ thousands except per share data)
-------------------------------------------------------------------------
2005 2004
----------------- -----------------------------------
Quarter ended June 30 Mar 31 Dec 31 Sept 30 June 30 Mar 31
-------------------------------------------------------------------------
Revenues before
royalties 11,052 11,965 12,248 10,769 13,043 11,379
Net earnings (loss) 473 (2,966) (2,472) (1,981) (382) (697)
Net earnings (loss)
per common share
- basic (if net
loss) fully diluted
(if net earnings)
during period 0.01 (0.07) (0.06) (0.05) (0.01) (0.02)
-------------------------------------------------------------------------

-------------------------------------
2003
-----------------
Quarter ended Dec 31 Sept 30
-------------------------------------
Revenues before
royalties 9,148 8,978
Net earnings (loss) 3,609 (477)
Net earnings (loss)
per common share
- basic (if net
loss) fully diluted
(if net earnings)
during period 0.13 (0.02)
-------------------------------------

Operating Results

Net Earnings (Loss) (excluding Lavoy area, as noted above)

Iteration net earnings in the second quarter of 2005 were $0.5 million as
compared to a net loss (after adjusting for Lavoy) of $0.4 million in the
second quarter of 2004. The second quarter 2005 financial results were
impacted by decreased production, which was partially offset by higher
benchmark crude oil and natural gas prices. In addition, decreased production
expenses and general and administrative expenses (after adjusting for stock
based compensation charges) helped to offset the impact of lower actual
production during the quarter.

Operating Netback (excluding Lavoy area, as noted above)

The second quarter 2005 operating netback of $34.65/BOE increased from
$23.45/BOE in Q2, 2004 on the strength of higher realized commodity prices and
lower operating costs per BOE.

Operating Netback Three months ended June 30 Six months ended June 30
-----------------------------------------------------
% %
($/BOE) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Production revenue 47.84 40.25 19 43.90 40.82 8
Royalties (9.86) (9.39) 5 (9.86) (9.08) 9
Operating costs (2.88) (6.29) (54) (5.99) (5.84) 3
Transportation costs (0.45) (1.12) (60) (0.76) (1.66) (54)
-------------------------------------------------------------------------
Operating netback 34.65 23.45 48 27.29 24.24 13
-------------------------------------------------------------------------

Production (excluding Lavoy area, as noted above)

Average daily production for the three months ended June 30, 2005
decreased by 1,022 BOE/d as compared to the three months ended June 30, 2004.
Production decreases at Boundary Lake due to normal decline were exaggerated
by the extended turn around at the Duke McMahon gas plant. However, new
production at Wild River and increased production at Cold Lake from new
drilling partially offset this decline.
Natural gas production from the Wild River area commenced in late
September 2004 and added 350 BOE/d to second quarter 2005 production
(332 BOE/d for the first six months of 2005) while the well was on production.
Average production from this property for the quarter was less as the property
was shut in for 23 days for work over requirements.
Production at Cold Lake increased by 76 BOE/d over the second quarter of
2004 due to new wells.
Third quarter production will continue to be impacted by the plant
turnaround at Boundary Lake. The McMahon plant shutdown shut in approximately
1,950 BOE/d at Boundary Lake for the period from June 22 to July 7. Production
is expected to increase to approximately 4,030 BOE/d for the fourth quarter of
2005.

Daily Production Three months ended June 30 Six months ended June 30
-----------------------------------------------------
% %
2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Natural gas (Mcf/d) 13,967 17,950 (22) 15,791 17,252 (8)
Crude oil and natural
gas liquids (Bbls/d) 211 569 (63) 265 430 (38)
Total (BOE/d) 2,539 3,561 (29) 2,897 3,305 (12)
-------------------------------------------------------------------------

Commodity Prices (excluding Lavoy area, as noted above)

Industry Benchmarks Three months ended June 30 Six months ended June 30
----------------------------------------------------
(Average for the % %
period) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Natural gas US$/Mcf
at Henry Hub 6.94 6.10 14 6.69 5.86 14
Natural gas (Alberta
Spot) Cdn$/Mcf at AECO 7.36 7.01 5 7.14 6.71 6
WTI crude oil US$/
Barrel at Cushing 53.09 38.32 38 51.44 36.77 40
Canadian 0.3% par
crude Cdn$/barrel
at Edmonton 65.72 50.44 30 63.71 48.05 32
-------------------------------------------------------------------------

Realized Three months ended June 30 Six months ended June 30
Commodity Prices -----------------------------------------------------
(Includes hedging % %
receipts & payments) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Natural gas ($/Mcf) 7.90 6.80 16 7.20 6.87 5
Oil and natural gas
liquids ($/Bbl) 52.78 37.39 41 50.73 38.21 33
Total ($/BOE) 47.84 40.25 19 43.90 40.82 8
-------------------------------------------------------------------------

Realized commodity prices for natural gas exceed the percentage change in
Alberta Spot prices due to the hedging loss realized by the Company in the
2004 reporting periods.

Revenue (excluding Lavoy area, as noted above)

Production revenue was $11.1 million in the second quarter of 2005,
compared with $13.0 million in the second quarter of 2004. The production
revenue decline was due to lower average daily production, (the result of
normal declines, work over work at Wild River, and the plant turn around at
Boundary Lake). However the impact of the production decline was partially
offset by netbacks for natural gas and crude oil.

Production Revenue Three months ended June 30 Six months ended June 30
before royalties -----------------------------------------------------
% %
($ thousands) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Production revenue,
before hedging 11,052 14,039 (21) 23,017 25,268 (9)
Hedging loss - (996) (100) - (846) (100)
-------------------------------------------------------------------------
Production revenue 11,052 13,043 (15) 23,017 24,422 (6)
-------------------------------------------------------------------------

Hedging and Risk Management

In certain circumstances, fixed price commodity contracts or commodity
derivative contracts are used to reduce the Company's exposure to adverse
fluctuations in commodity prices to protect future cash flow used to finance
the Company's capital expenditure program. The Company uses hedge accounting
for gains and losses relating to commodity derivative contracts that settle
via net cash payment and that meet hedge criteria. These gains and losses are
recognized as part of natural gas sales concurrently with the hedged
transaction and, accordingly, no recognition of mark-to-market gains or losses
are included in income. The Company does not enter into financial instruments
for trading or speculative purposes.
At June 30, 2005 the Company did not have any commodity derivative
contracts outstanding. The following plantgate sales contract, however, was
outstanding:

-------------------------------------------------------------------------
Volume Contract Price
Transaction Type (GJ/d) (GJ/d) Expiry
-------------------------------------------------------------------------
Cogeneration Fuel Supply 33 $1.959 - $2.217 October 31, 2009

Royalties (excluding Lavoy area, as noted above)

Royalty expense was $2.3 million in the second quarter of 2005, compared
with $3.0 million in the second quarter of 2004. Rates per BOE were relatively
consistent between periods.

Royalties Three months ended June 30 Six months ended June 30
-----------------------------------------------------
($ thousands % %
except where noted) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Royalties 2,277 3,043 (25) 5,155 5,433 (5)
Per BOE ($/BOE) 9.86 9.39 5 9.83 9.08 8
Percentage of
revenue (%) 21 23 (9) 22 22 (0)
-------------------------------------------------------------------------

Production Expenses (excluding Lavoy area, as noted above)

Production expenses were $0.7 million for the second quarter of 2005,
compared with $2.0 million for the second quarter of 2004. A portion of the
decrease is due to the reversal of prior period operating cost accruals during
the quarter. Other contributing factors for the decrease during the quarter
are property shut ins (Boundary Lake, Wild River) as well as the results of
Management's cost cutting initiatives. It is Management's expectation that
operating costs for the properties will average approximately $6.00 per BOE
for the second half of the year.

Production Three months ended June 30 Six months ended June 30
Expenses -----------------------------------------------------
% %
($ thousands) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Field operating costs 571 1,865 (69) 2,926 3,199 (9)
Allocated general and
administrative expenses 95 174 (45) 215 296 (27)
-------------------------------------------------------------------------
Total production
expenses 666 2,039 (67) 3,141 3,495 (10)
-------------------------------------------------------------------------

Production Three months ended June 30 Six months ended June 30
Expenses per BOE -----------------------------------------------------
% %
($ per BOE) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Field operating costs 2.46 5.76 (57) 5.58 5.34 4
Allocated general and
administrative
expenses 0.42 0.53 (21) 0.41 0.50 (18)
-------------------------------------------------------------------------
Total production
expenses 2.88 6.29 (55) 5.99 5.84 3
-------------------------------------------------------------------------

General and Administrative Expenses

General and administrative expenses, net of overhead recoveries on
operated properties, stock based compensation and bonus accruals, was
$1.0 million in the second quarter of 2005, compared with $1.5 million in the
second quarter of 2004. The reduction is a reflection the impact of staff
reductions during the quarter (and the resulting end of corresponding staff
retention premiums (which were in excess of $0.3 million during the first
quarter of 2005) and the cost cutting efforts undertaken by management to
streamline general and administrative functions within the organization. With
the anticipated additional activity contemplated by the Company during the
third and fourth quarter, staffing levels will increase, which will result in
increased staffing and administrative costs for those periods. The Company
does not expect to realize the results of those efforts, in the form of
additional production, until the fourth quarter of 2005 and the first quarter
of 2006. General and administrative costs are expected to average
approximately $3.00 per BOE for the second half of the year.

General and
Administrative Three months ended June 30 Six months ended June 30
Expenses -----------------------------------------------------
($ thousands except % %
where noted) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Gross general &
administrative
expenses 1,549 2,432 (36) 3,830 4,567 (16)
Overhead recoveries (85) (234) (64) (200) (575) (65)
Allocation to
production expense (95) (174) (45) (215) (296) (27)
Capitalized overhead (363) (476) (24) (703) (853) (18)
-------------------------------------------------------------------------
Net general &
administrative
expenses 1,006 1,548 (35) 2,712 2,843 (5)
Per BOE ($/BOE) 4.35 4.77 (9) 5.17 4.75 9
-------------------------------------------------------------------------

Stock Based Compensation Expense

As approved by Hawker's shareholders, the Company's stock option plan was
amended effective April 1, 2004 to provide stock option holders the choice,
upon exercise, to receive a cash payment in exchange for surrendering the
option. The cash payment is equal to the appreciated value of the stock
option, as determined by the difference between the option's exercise price
and the Company's closing share price the day prior to electing to exercise
the option. For the six months ended June 30, 2005, stock based compensation
expense of $1.1 million was accrued based on the appreciated value of the
outstanding stock options as determined using the June 30, 2005 closing share
price. Future fluctuations in the stock based compensation expense or
recoveries are dependent on the movement of the Company's share price and the
number of options outstanding. Based on the June 30, 2005 share price of
$4.90, had all 4,857,697 stock options outstanding been vested, stock based
compensation expense and a corresponding liability of $9.4 million (including
the $1.1 million recognized at June 30, 2005) would have been recognized.

Interest Expense

Interest expense on current and long-term debt was nominal for the three
months ended June 30, 2005 as all bank debt of the Company was repaid at the
end of the March 2005.

Interest Expense Three months ended June 30 Six months ended June 30
-----------------------------------------------------
($ thousands except % %
where noted) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Interest expense 35 581 (94) 588 1,227 (52)
Per BOE ($/BOE) 0.15 1.09 (86) 0.80 1.20 (33)
-------------------------------------------------------------------------

Depletion and Depreciation (excluding Lavoy area, as noted above)

Depletion and depreciation expense was $5.0 million for the three months
ended June 30, 2005 compared to $6.6 million for the comparable period in
2004. This decrease was due to lower production during the quarter as compared
to 2004. The depletion and depreciation rate per BOE increase was primarily
due to impact of the acquisition of Zorin, coupled with the high finding and
development costs/BOE incurred in 2004.

Depletion and
Depreciation Three months ended June 30 Six months ended June 30
Expense -----------------------------------------------------
($ thousands except % %
where noted) 2005 2004 Change 2005 2004 Change
-------------------------------------------------------------------------
Depletion and
depreciation expense 5,043 6,613 (24) 12,383 12,038 3
Per BOE ($/BOE) 21.83 20.41 7 23.62 20.12 17
-------------------------------------------------------------------------

Taxes

Current tax expense for the six months ended June 30, 2005 was comprised
of:

($ thousands)
-------------------------------------------------------------------------
Capital tax 80
Part XII.6 tax 184
Capital tax differential of prior years 46
Part I tax reassessed on predecessor companies 195
-------------------------------------------------------------------------
Current tax expense 505
-------------------------------------------------------------------------

Capital Expenditures

The Company spent $3.3 million on exploration and development activities
during the three months ended June 30, 2005. This low level of spending
resulted from the new management conducting a thorough technical review of all
the properties in preparation for increased activity in the second half of the
year, after breakup.

-------------------------------------------------------------------------
Capital Expenditures Three months ended Six months ended
(including Lavoy) June 30, June 30,
($ thousands) 2005 2004 2005 2004
-------------------------------------------------------------------------
Exploration & development
expenditures 3,278 3,235 8,484 26,078
Acquisitions, net of cash acquired - 164 20,677 12,709
Other 5 159 5 301
-------------------------------------------------------------------------
Total 3,283 3,558 29,166 39,088
-------------------------------------------------------------------------

Management expects to spend approximately $36 million in capital
expenditures during the second half of 2005.
On March 24, 2005, Iteration closed the sale of its Lavoy area assets to
two unrelated third parties for a net cash consideration totaling
$84.5 million.

Liquidity and Capital Resources

On March 24, 2005, the Company received net proceeds from the divestiture
of the Lavoy area assets in the amount of $82.6 million. The Company
subsequently billed an additional $1.9 million for final closing adjustments.
The proceeds were used to retire bank debt, at which time the Company's credit
facility was cancelled. Remaining proceeds are reflected as cash.
The Company will be entering into preliminary discussions with Canadian
Chartered banks with the intention to establish a new credit facility in the
third quarter. However, the Company projects that cash flow plus existing cash
on hand will be sufficient to fund the anticipated capital program for the
balance of the fiscal year. Therefore, the Company does not anticipate the
need for the utilization of a credit facility this year.

Related Party Transactions

From time to time, the Company entered into contracts with service
companies that directors of Iteration (up until July 5, 2005) are also
directors of. The services and supplies, which were primarily for legal and
well monitoring services, (and totalled $878,000 for the six months ended
June 30, 2005) were invoiced to Iteration at standard industry rates.

Outlook for 2005

With the elimination of the debt and the acquisition of Iteration Energy
Inc., the Company is poised for growth in the second half of 2005. Management
has completed a detailed review of the core properties, which has shown
numerous opportunities for reserve and volume additions. These opportunities
will be exploited later in the year. The Company has plans for additional
exploration wells and continues its focus on adding new lands for future
exploration and development. The Company will continue its program of lower
operating costs on the existing properties and streamlining general and
administrative functions. The Company plans capital expenditures of
$36 Million during the second half of the year and production is expected to
increase to an average of 4,030 BOE/d for the fourth quarter.

Directors, Officers and Auditors

Current Directors and Officers of the Company are as follows:

Directors
---------
Pat Breen P. Eng. President, Foremost Income Trust Fund
Dallas Droppo Q.C. Partner, Blake, Cassels and Graydon, LLP
Jim Grenon President, Tom Capital Associates
Michael Hibberd Independent Businessman
Brian Illing P. Geol President and CEO, Iteration Energy Ltd.
Robert Waters CA Senior VP and CFO, Enerplus Resource Fund

Corporate Secretary
-------------------
Tony Grenon Managing Director, Tom Capital Associates

Officers
--------
Brian Illing President and CEO
Mark Ariss VP Exploration East
Sean Johnson CFO
Jane Mactaggart VP Exploitation
Carmen McKay-Illing VP Corporate Affairs
Kevin Stromquist VP Exploration West

Auditors
--------
Ernst & Young, LLP

Advisory - Forward-Looking Information

This MD&A contains forward-looking information with respect to Iteration
Energy Ltd. (formerly Hawker Resources Inc.)
The use of any of the words "anticipate," "continue," "estimate,"
"expect," "may," "will," "project," "should," "believe," "outlook," and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from
those anticipated in our forward-looking statements. We believe the
expectations reflected in these forward-looking statements are reasonable.
However, we cannot assure the reader that these expectations will prove to be
correct. The reader should not unduly rely on forward-looking statements
included in this report. These statements speak only as of the date of the
MD&A, being August 3, 2005.
In particular, this MD&A contains forward-looking statements pertaining
to the following:

- The quantity and recoverability of our reserves;
- The timing and amount of future production;
- Prices for natural gas produced;
- Operating and other costs;
- Business strategies and plans of Management;
- Supply and demand of natural gas;
- Expectations regarding our ability to raise capital and to add to our
reserves through acquisitions as well as exploration and development;
- The focus of capital expenditures on development activity rather than
exploration;
- The sale, farming in, farming out or development of certain
exploration properties using third party resources;
- The use of development activity and acquisitions to replace and add to
reserves;
- The impact of changes in natural gas prices on cash flow after
hedging;
- Drilling plans;
- The existence, operations and strategy of the commodity price risk
management program;
- The approximate and maximum amount of forward sales and hedging to be
employed;
- The Company's acquisition strategy, and the criteria to be considered
and the benefits to be derived;
- The impact of Canadian federal and provincial governmental regulation
on the Company relative to other issuers of similar size;
- Our treatment under governmental regulatory regimes;
- The goal to sustain or grow production and reserves through prudent
management and acquisition;
- The emergence of accretive growth opportunities; and
- The Company's ability to benefit from the combination of growth
opportunities and the means to grow through the capital markets.

Our actual results could differ materially from those anticipated in our
forward-looking statements as a result of the risk factors set forth below and
elsewhere in this MD&A which include but are not limited to:

- Volatility in market prices for natural gas;
- Risks inherent in our operations;
- Uncertainties associated with estimating reserves;
- Competition for, among other things: capital, acquisitions of
reserves, undeveloped lands and skilled personnel;
- Incorrect assessments of the value of acquisitions;
- Geological, technical, drilling and process problems;
- General economic conditions including fluctuations in the price of
natural gas;
- Royalties payable in respect of Hawker's production;
- Governmental regulation of the oil and gas industry, including
environmental regulation;
- Fluctuation in foreign exchange or interest rates;
- Unanticipated operational events that can reduce production or cause
production to be shut-in or delayed;
- Stock market volatility and market valuations; and
- The need to obtain required approvals from regulatory authorities.

The above list of risk factors should not be construed as exhaustive.

Consolidated Financial Statements of

Iteration Energy Ltd. (formerly Hawker Resources Inc.)

June 30, 2005 and 2004

Iteration Energy Ltd. (formerly Hawker Resources Inc.)

Consolidated Balance Sheets (Unaudited)
-------------------------------------------------------------------------
June 30, December 31,
(in thousands of dollars) 2005 2004
-------------------------------------------------------------------------

ASSETS

Current
Cash $ 29,237 $ -
Accounts receivable 10,372 10,691
Assets held for sale - 2,119
Prepaids and other current assets 1,018 2,265
-------------------------------------------------------------------------
40,627 15,075

Property, plant and equipment
(Notes 2, 3, and 5) 87,308 185,112

Goodwill (Note 2(b)) 20,677 -

Future income taxes - 2,080

-------------------------------------------------------------------------
$ 148,612 $ 202,267
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current
Accounts payable and accrued liabilities $ 8,476 $ 22,103
Equipment finance obligations - 111
Capital lease obligations (Note 5) 452 436
Bank loan (Note 4) - 1,243
-------------------------------------------------------------------------
8,928 23,893

Bank loan (Note 4) - 50,275

Equipment finance obligations - 214

Capital lease obligations (Note 5) 499 729

Future income taxes 1,083 -

Leasehold inducements 580 661

Asset retirement obligations (Note 6) 4,492 8,234
-------------------------------------------------------------------------
15,582 84,006
-------------------------------------------------------------------------
Shareholders' Equity (Note 7)
Share capital 139,201 126,618
Warrants outstanding 4,166 -
Contributed surplus - 10
Deficit (10,337) (8,367)
-------------------------------------------------------------------------
133,030 118,261
-------------------------------------------------------------------------
$ 148,612 $ 202,267
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Iteration Energy Ltd. (formerly Hawker Resources Inc.)
Consolidated Statements of Earnings (Loss) and Deficit (Unaudited)
-------------------------------------------------------------------------
Three Months Ended Six Months Ended
(in thousands of dollars, June 30, June 30,
except per share amount) 2005 2004 2005 2004
-------------------------------------------------------------------------
(Note 2(c)) (Note 2(c))
Revenue
Production revenue $ 11,052 $ 20,698 $ 31,369 $ 40,302
Royalties, net of
Alberta Royalty
Tax Credit (2,277) (4,826) (6,756) (9,521)
-------------------------------------------------------------------------
8,775 15,872 24,613 30,781
Interest income 120 3 137 20
Gain on sale of
investments - 1,133 - 1,133
-------------------------------------------------------------------------
8,895 17,008 24,750 31,934
-------------------------------------------------------------------------
Expenses
Production 666 2,627 3,896 4,806
Transportation 105 363 402 999
General and administrative 1,006 1,548 2,712 2,843
Stock based compensation
(Note 7 (c)) 793 - 1,071 -
Interest on current debt - - 6 -
Interest 35 581 583 1,227
Depletion and depreciation 5,043 10,921 17,857 20,582
-------------------------------------------------------------------------
7,648 16,040 26,527 30,457
-------------------------------------------------------------------------
Earnings (loss) before the
following 1,247 968 (1,777) 1,477
-------------------------------------------------------------------------

Recovery of investment
tax credits 1,409 - 1,409 -

Loss on disposal of
investment in subsidiary - - (59) -

Operating costs and
write-downs associated
with assets held for sale - (33) (4) (69)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) before taxes 2,656 935 (431) 1,408

Taxes
Future income tax (1,997) - (1,035) -
Current (186) (340) (504) (555)
-------------------------------------------------------------------------
(2,183) (340) (1,539) (555)
-------------------------------------------------------------------------

Net earnings (loss) 473 595 (1,970) 853

Deficit, beginning of
period (10,810) (6,621) (8,367) (6,879)
-------------------------------------------------------------------------

Deficit, end of period $ (10,337) $ (6,026) $ (10,337) $ (6,026)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Basic and diluted net
earnings (loss) per
common share (Note 7(e)) $ 0.01 $ 0.01 $ (0.04) $ 0.02
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Iteration Energy Ltd. (formerly Hawker Resources Inc.)
Consolidated Statements of Cash Flows (Unaudited)
-------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
(in thousands of dollars) 2005 2004 2005 2004
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net earnings (loss) $ 473 $ 595 $ (1,970) $ 853
Add (deduct) non-cash items:
Depletion, depreciation
and asset write-downs 5,043 10,921 17,857 20,582
Accretion expense 56 65 262 155
Loss on disposal of
investment in subsidiary - - 42 -
Recovery of investment
tax credits (1,409) - (1,409) -
Future income tax 1,997 - 1,035 -
Amortization of leasehold
inducements (36) - (81) -
Gain on sale of investments - (1,133) - (1,133)
Stock-based compensation
(Note 7 (c)) 793 - 1,071 75
-------------------------------------------------------------------------
6,917 10,448 16,807 20,532
Asset retirement expenditures (155) - (262) -
Net change in non-cash
working capital (Note 10) (7,645) 1,481 (14,037) 824
-------------------------------------------------------------------------
(883) 11,929 2,508 21,356
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Proceeds from sale of
property, plant and
equipment (Note 2 (c)) 1,926 5,321 84,535 6,039
Proceeds on disposal of
assets held for sale - - 2,119 -
Cash consideration on
acquisition of subsidiary,
net of cash acquired - - (353) -
Cash consideration on
acquisition of oil and gas
properties (Note 2) - (139) - (2,021)
Additions to oil and gas
properties (3,278) (3,235) (8,484) (26,078)
Additions to other capital
assets (5) (159) (5) (301)
Proceeds on sale of
investment - 3,633 - 3,633
Leasehold inducements
received - 68 - 137
Net change in non-cash
working capital (Note 10) (1,175) (13,079) 829 (312)
-------------------------------------------------------------------------
(2,532) (7,590) 78,641 (18,903)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Net change in bank loan - (3,847) (51,518) (1,635)
Principal payment -
equipment finance obligation (305) - (325) -
Principal payment - capital
lease obligation (109) - (214) -
Share issue costs - (3) (38) (27)
Net change in non-cash
working capital (Note 10) 183 (489) 183 (791)
-------------------------------------------------------------------------
(231) (4,339) (51,912) (2,453)
-------------------------------------------------------------------------

Increase (decrease) in cash (3,646) - 29,237 -

Cash, beginning of period 32,883 - - -
-------------------------------------------------------------------------

Cash, end of period $ 29,237 $ - $ 29,237 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplemental disclosure of cash flow information (Note 10)

See accompanying notes to the consolidated financial statements

For further information, please contact Mr. Brian Illing, President and
CEO, or Mr. Sean Johnson, CFO at 403-261-6883.

Iteration Energy Ltd. (formerly Hawker Resources Inc.)

Notes to the Consolidated Financial Statements
Three and Six Months ended June 30, 2005 and 2004
(Unaudited) (Tabular amounts in thousands of dollars,
unless otherwise noted)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements of Iteration Energy Ltd.
(formerly Hawker Resources Inc.), (the "Company" or "Iteration") have
been prepared in accordance with Canadian generally accepted accounting
principles and are consistent with the accounting policies and methods of
computation used in the preparation of the audited consolidated financial
statements as at December 31, 2004. The interim consolidated financial
statements contain disclosures which are supplemental to the Company's
annual financial statements. Certain disclosures, which are normally
required to be included in the notes to the annual financial statements,
have been condensed or omitted. The interim consolidated financial
statements should be read in conjunction with the Company's audited
consolidated financial statements and notes thereto for the year ended
December 31, 2004.

Basis of Consolidation

These consolidated financial statements include the accounts of
Iteration, its wholly owned subsidiary and its partnership.

2. ACQUISITIONS AND DISPOSITIONS

(a) Mar Oil Company

During January 2005, the Company disposed of its wholly owned subsidiary,
Mar Oil Company. Iteration received as consideration an unsecured
promissory note with a maximum $1,000,000 conditional principal amount,
based on the value of the proven reserves as of July 1, 2006, discounted
at 15%, on the lands held by Mar Oil Company plus net working interest
revenue received on these lands to July 1, 2006. The promissory note is
payable in annual installments, calculated based on cash flow from the
lands, commencing on August 31, 2007.

The promissory note may be prepaid in full by the purchaser by the
payment of (i) $250,000 by June 30, 2005; (ii) $350,000 after
July 1, 2005 and on or before December 31, 2005; or (iii) $500,000 after
January 1, 2006 and on or before June 30, 2006.

The Company did not assign value to the promissory note on the disposal
of Mar due to the unsecured nature of the promissory note and
uncertainties with regard to its ultimate repayment. A loss on the
disposition of Mar in the amount of $58,000 was recognized.

(b) Iteration Energy Inc.

On March 21, 2005 the Company acquired all of the shares of Iteration
Energy Inc. The acquisition was accounted for by the purchase method and
the purchase price was allocated as follows:

Allocation of purchase price:
Cash $ 2,175
Goodwill 20,677
-------------------------------------------------------------------------
Total purchase price $ 22,852
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consideration was comprised of :
Issue of 5,750,000 common shares using an ascribed value of
$2.81 per share $ 16,158
Issue of 5,000,000 warrants using an ascribed value of
$0.8332 per warrant 4,166
Cash 2,528
-------------------------------------------------------------------------
Total consideration $ 22,852
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The value of the common shares issued for the acquisition of Iteration
Energy Inc. was based on the average closing price of the Company's
shares on the five trading days preceding the closing of the transaction.
The results of operations for Iteration Energy Inc. have been included in
the consolidated financial statements since March 21, 2005.

The fair value of the warrants granted was estimated to be $4,166,000 as
at the date of grant using the Black-Scholes option pricing model and the
following weighted average assumptions:

-------------------------------------------------------------------------
Risk-free interest rate (%) 3.75
Expected life (years) 3.50
Expected volatility (%) 35.72
Expected dividend yield (%) -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(c) Sale of Lavoy Area Properties

On March 24, 2005, with an effective date of January 1, 2005, the Company
sold its Lavoy area properties to two unrelated third parties for gross
proceeds totaling $85,000,000. After adjustments for operating results
and capital expenditures for the period between the effective date and
the closing date, the Company received net proceeds of $84,535,000. The
proceeds were applied to eliminate bank debt, with the remaining proceeds
applied to working capital.

Operating results from the Lavoy area are included in the consolidated
financial statements from January 1, 2005 to March 24, 2005, the closing
date of the sale. No gain or loss on the disposition was recognized as
crediting the net proceeds to capital costs did not result in a change of
20 percent or more in the depletion and depreciation rate.

3. PROPERTY, PLANT AND EQUIPMENT

-------------------------------------------------------------------------
June 30, December 31,
2005 2004
-------------------------------------------------------------------------
Oil and gas properties $ 157,056 $ 237,009
Other 594 589
-------------------------------------------------------------------------
157,650 237,598
Less accumulated depletion and depreciation 70,342 52,486
-------------------------------------------------------------------------
$ 87,308 $ 185,112
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At June 30, 2005, unproved properties and seismic amounting to
$12,846,000 (December 31, 2004: $21,416,000) have been excluded from the
depletion and depreciation calculation. Future development costs on
proven undeveloped reserves of $ nil (December 31, 2004: $1,633,000) are
included in the depletion and depreciation calculation.

For the three month period ended June 30, 2005, the Company capitalized
$363,000 (three months ended June 30, 2004: $476,000) of overhead
directly related to exploration and development activities. For the six
month period ended June 30, 2005, the Company capitalized $703,000 (six
months ended June 30, 2004: $853,000) of overhead directly related to
exploration and development activities.

Property, plant and equipment include assets under capital lease having a
carrying value of $1,137,000 as at June 30, 2005.

4. BANK LOAN

The Company applied proceeds received from the sale of its Lavoy area
property disposition (see note 2(c)) to repay all amounts outstanding
under its extendible revolving term credit facility, at which time the
facility was cancelled.

5. CAPITAL LEASE OBLIGATIONS

During 2004, the Company entered into an agreement to lease a new
compressor for a two-year term. It is anticipated that the Company will
purchase the compressor at the end of the two-year term and has accounted
for this lease as a capital lease. Assets under capital lease amounting
to $1,277,000 are included in property, plant and equipment and
depreciated with other equipment costs on the unit of production method.
The interest rate implicit in the lease is 7.35%. Future minimum lease
payments under the capital lease are as follows:

-------------------------------------------------------------------------
Current $ 452
Thereafter 499
-------------------------------------------------------------------------
$ 951
-------------------------------------------------------------------------
-------------------------------------------------------------------------

6. ASSET RETIREMENT OBLIGATIONS

The total future asset retirement obligations were estimated by
management based on the Company's net working interest in all wells and
facilities, estimated costs to reclaim and abandon wells and facilities
and the estimated timing of the costs to be incurred in future periods.
The Company estimates the undiscounted cash flows related to asset
retirement obligations, adjusted for inflation, to be incurred over the
estimated reserve life of the underlying assets will total approximately
$9,062,000. The fair value at June 30, 2005 is $4,492,000 using a
discount rate of six percent and an inflation rate of two percent. As at
June 30, 2005, no funds have been set aside to settle this obligation.

Six Months Ended Year ended
June 30, December 31,
2005 2004
-------------------------------------------------------------------------
Balance, beginning of period $ 8,234 $ 3,499
Increase in liabilities 131 4,440
Settlement of liabilities (262) -
Decrease in liabilities due to property
dispositions (3,873) -
Accretion expense 262 295
-------------------------------------------------------------------------
Balance, end of period $ 4,492 $ 8,234
-------------------------------------------------------------------------
-------------------------------------------------------------------------

7. SHARE CAPITAL

(a) Common Shares Issued

-------------------------------------------------------------------------
Number of
Shares Amount
-------------------------------------------------------------------------
Balance, January 1, 2005 43,071,681 $ 126,618
Issued on acquisition of Iteration (Note 2(b)) 5,750,000 16,158
Share issue costs, net of tax effect - (25)
Tax benefits renounced - (3,550)
-------------------------------------------------------------------------
Balance, June 30, 2005 48,821,681 $ 139,201
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(b) Flow-Through Shares

During 2004, the Company issued common shares on a flow-through basis for
gross proceeds of $10,558,000 to finance certain oil and gas expenditures
to be incurred in 2005. The renouncement of these expenditures was made
to the purchasers of these shares in 2005 and accordingly, share capital
has been reduced by the amount of the tax benefits associated with these
expenditures. The corresponding future tax liability was also recognized
in 2005.

(c) Stock Options

The Company has a stock option plan that provides for the issuance of
options to its directors, officers, employees and non-employees to
acquire up to 10% of the issued and outstanding common shares. The dates
on which options vest are set by the Board of Directors at the time of
grant. The exercise price of an option granted is the closing price of
the Company's stock on the last trading date prior to the grant date. The
dates on which options expire are also set by the Board of Directors at
the time of grant and cannot exceed ten years.

Outstanding stock options to acquire common shares through the stock
option plan are as follows:

-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
Weighted Weighted
average average
Number of exercise price Number of exercise price
Options $ Options $
-------------------------------------------------------------------------
Outstanding at
January 1 747,200 4.93 444,001 4.74
Granted 4,810,0000 2.93 433,700 5.10
Surrendered for
cancellation (126,665) 3.57 - -
Forfeited (572,838) 4.40 (34,500) 4.48
-------------------------------------------------------------------------
Outstanding at
June 30 4,857,697 3.05 843,201 4.94
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Options
exercisable at
June 30 111,010 7.16 99,334 8.35
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The following table summarizes information about the stock options
outstanding at June 30, 2005:

-------------------------------------------------------------------------
Weighted
Number average Weighted Number Weighted
outstanding remaining average exercisable average
Range of June 30, contractual exercise June 30, exercise
exercise prices 2005 life (years) price $ 2005 price $
-------------------------------------------------------------------------
$2.90 to $4.00 4,694,665 4.68 2.91 76,665 3.45
$4.01 to $5.00 121,666 4.37 4.76 13,889 4.68
$5.01 to $9.00 31,990 3.82 5.36 11,080 5.48
$9.01 to $30.00 1,563 3.92 17.20 1,563 17.20
$30.01 to $90.00 7,813 3.46 48.33 7,813 48.33
-------------------------------------------------------------------------
4,857,697 4.67 3.05 111,010 7.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Subsequent to June 30, 2005, an additional 27,000 options were granted at
a weighted average grant price of $5.17. These options vest over a period
of 5 years. In addition, subsequent to month end 28,333 options with a
weighted average grant price of $4.92 were exercised.

As approved by Iterations's shareholders, the Company's stock option plan
was amended effective April 1, 2004 to provide stock option holders the
choice, upon exercise, to receive a cash payment in exchange for
surrendering the option. The cash payment is equal to the appreciated
value of the stock option as determined based on the difference between
the option's exercise price and the Company's share price at the time of
exercise. For the period ended June 30, 2005, stock based compensation
expense of $1,071,000 (period ended June 30, 2004: $75,000), relating to
stock options was recognized based on the appreciated value of the
outstanding stock options, as determined using the June 30, 2005 closing
share price. Additional stock based compensation expense or recoveries in
future periods are dependent on the movement of the Company's share price
and the number of options outstanding. Based on the June 30, 2005 share
price of $4.90, had all of the 4,857,697 stock options outstanding been
vested, stock based compensation expense and a corresponding liability of
$9,361,500 would have been recognized.

(d) Warrants

Warrants to purchase 5,000,000 common shares at $2.90 were issued to
Iteration Energy Inc. shareholders. The warrants vest the first day after
the common shares of the Company have traded at a weighted average price
of not less than $4.50 per common share for any 45 consecutive calendar
days within a 42-month period. The warrants expire on September 21, 2008.
On May 7, 2005, all of the warrants vested.

(e) Per Share Amounts

Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
-------------------------------------------------------------------------
Weighted average common
shares outstanding 48,821,681 41,021,681 46,312,012 40,543,443
Effect of dilutive
warrants 1,806,167 - - -
-------------------------------------------------------------------------
Weighted average diluted
common shares
outstanding 50,627,848 41,021,681 46,312,012 40,543,443
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Stock options have not been included in the determination of weighted
average diluted common shares outstanding as the options have a cash
settlement feature. In addition, the dilution effect of warrants was not
included for the six months ended June 30, 2005, as a net loss is
reported for that period.

8. RELATED PARTY TRANSACTIONS

From time to time, the Company entered into contracts with service
companies that directors of Iteration (up until July 5, 2005) are also
directors of. The services and supplies were invoiced to Iteration at
standard company prices.

All transactions were recorded at their exchange amounts.

9. FINANCIAL INSTRUMENTS

The following plant gate sales contracts were outstanding as at
June 30, 2005:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) Contract Price(GJ/d) Expiry
-------------------------------------------------------------------------
Cogeneration Fuel Supply 33 $1.959 - $2.217 October 31,
2009

Based on independent price forecasts, had this contract been closed on
June 30, 2005, a loss of $232,000 would have been realized.

10. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Changes in non-cash working capital were comprised of the following:

Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
-------------------------------------------------------------------------
Accounts receivable $ 156 $ 1,373 $ 318 $ 203
Prepaids and other current
assets 706 (352) 1,247 (377)
Accounts payable and accrued
liabilities (9,499) (13,082) (14,590) 5,172
Less working capital
deficiency acquired - (26) - (1,000)
-------------------------------------------------------------------------
Net change $ (8,637) $ (12,087) $ (13,025) $ (279)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Net change by activity:
Operating $ (7,645) $ 1,481 $ (14,037) $ 824
Investing (1,175) (13,079) 829 (312)
Financing 183 (489) 183 (791)
-------------------------------------------------------------------------
Net change $ (8,637) $ (12,087) $ (13,025) $ (279)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Additional information:
-------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
-------------------------------------------------------------------------
Cash interest paid $ 35 $ 575 $ 583 $ 1,386
Cash taxes paid 306 653 547 653

11. COMPARATIVE AMOUNTS

Certain comparative amounts have been reclassified to conform to the
presentation adopted for the current period.

12. SUBSEQUENT EVENTS

On July 7, 2005, Hawker Resources Inc. changed its name to Iteration
Energy Ltd.

For further information

please contact Mr. Brian Illing, President and CEO, or Mr. Sean Johnson, CFO at (403) 261-6883

--------------------------------------------------------------------------------
Source: Iteration Energy Ltd.

http://biz.yahoo.com/cnw/050812/iteration_energy_q2.html?.v=1

Amaunet

07/08/05 12:27 PM

Post #197

Hawker Resources Inc. Changes Name to Iteration Energy Ltd.
Thursday July 7, 6:03 pm ET

CALGARY, July 7 /CNW/ - Hawker Resources Inc. (the "Corporation") is pleased to announce that, effective July 7, 2005 the Corporation has changed its name to Iteration Energy Ltd. The name change, which was approved by shareholders of the Corporation at the annual and special meeting of shareholders held on July 5, 2005, is made in connection with the Corporation's acquisition of Iteration Energy Inc. on March 21, 2005.

The common shares of the Corporation will continue to trade on the Toronto Stock Exchange under the symbol "HKR" until July 12, 2005, at which time the common shares will commence trading under the new name Iteration Energy Ltd. under the symbol "ITX", subject to satisfaction of regulatory requirements.

The Corporation (www.iterationenergy.com) is an Alberta-based corporation engaged in the business of exploring for and developing oil and natural gas reserves in western Canada and acquiring natural resource properties. The common shares are currently listed on the Toronto Stock Exchange under the symbol "HKR" and, commencing on Monday, July 11, 2005, will commence trading under the new name Iteration Energy Ltd. under the symbol "ITX".

For further information

Iteration Energy Ltd., Mr. Brian Illing, President & CEO, Tel: (403) 290-4867, Fax: (403) 266-1814

http://biz.yahoo.com/cnw/050707/hawker_changes_name.html?.v=1

Amaunet

06/24/05 11:36 AM

Post #196

Re: #195: @Amaunet - Hawker Resources changing name to Iteration Energy, drilling

Hawker Resources Inc. announces Capital and Production Forecast for 2005.
Tuesday June 21, 12:01 am ET

CALGARY, June 21 /CNW/ - Hawker Resources Inc. ("Hawker" or the "Company") announced today that it has completed a budget and production forecast for the final 3 quarters of the year. Operations had been put on hold from November 2004 to March 2005 while the Company conducted a strategic review. Activity has been restarted now that the new management team is in place. The Company has a strong balance sheet and significant cash flow to fund future operations. Volumes will be adversely affected by the McMahon plant turnaround in June and July, but the Company forecasts significant production growth by year end as outlined below.

- Capital Program April - December 2005 $39 million
- Debt Zero
- 2005 Cash Flow $26 Million(x)
- Production
- Q2 Forecast 2,590 boed
- Q3 Forecast 2,870 boed
- Q4 Forecast 4,030 boed
- 2005 3,190 boed(x)

(x)Net of Lavoy Disposition

The Company plans to drill approximately 30 net wells over the remainder of the year and sees significant production growth from the existing properties continuing into 2006. Further details of the operational program can be seen on the website at www.hawkerinc.com.
Hawker plans to change its name to Iteration Energy Ltd. at the Annual General Meeting to be held at 3:00 p.m. on Tuesday July 5th, 2005 at the Metropolitan Conference Centre (330 - 4th Ave SW. Calgary, Alberta.).

Forward Looking Statements

Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

Hawker Resources Inc.

Hawker (www.hawkerinc.com) is an Alberta-based corporation engaged in the
business of exploring for and developing oil and natural gas reserves in
Western Canada and acquiring natural resource properties. Hawker's common
shares are listed on the Toronto Stock Exchange under the symbol "HKR".

For further information

Hawker Resources Inc., Mr. Brian Illing, President & CEO, Tel: (403) 290-4867, Fax: (403) 266-1814

http://biz.yahoo.com/cnw/050621/hawker_resrc_forecast.html?.v=1

Amaunet

06/24/05 11:28 AM

Post #195

Hawker Resources changing name to Iteration Energy, drilling 30 more wells Tue Jun 21, 9:07 AM ET

CALGARY (CP) - Hawker Resources Inc. plans to change its name to Iteration Energy Ltd. next month and has restarted activities under new management after last year's restructuring.

The Calgary-based junior oil and gas company aslo said Tuesday it has completed a budget and production forecast for the last three quarters of the year.

The company plans to drill about 30 net wells over the rest of the year and sees "significant production growth from the existing properties continuing into 2006," Hawker (TSX:HKR - news) stated in a release.

Operations were put on hold from November 2004 until March 2005 while Hawker restructured. The company is recasting production of 2,590 barrels of oil equivalent per day in the second quarter, ramping up to 4,030 barrels a day in the fourth quarter.

The name change is planned for the annual meeting in Calgary on July 5.

http://news.yahoo.com/news?tmpl=story&u=/cpress/20050621/ca_pr_on_bu/hawker_resources_1

Amaunet

06/03/05 12:45 PM

Post #194

Investing after the oil rush

By ROB CARRICK

00:00 EDT Saturday, May 28, 2005 Page B11

DEAN PRODAN

'These stocks are priced a little higher because more people have been following them. It's not the same as before in that there's more risk now.'

PROFILE
President of UTA Asset Management in Calgary, which acts as a sub-adviser on oil and gas stocks to financier Ned Goodman's group of companies. He's a specialist in small-capitalization oil and gas stocks who for years managed Dominion Equity Resource, a top-performing oil and gas mutual fund.

WHAT HE'S DOING NOWLooking for stocks with a catalyst for growth like new management or a new angle on exploiting oil deposits thought to be played out.

THE RATIONALEHawker Resources is living proof that high oil stocks don't guarantee success for energy stocks. While the S&P/TSX capped energy index jumped 38 per cent in the past year, Hawker fell 15 per cent. So what's Mr. Prodan, a veteran of more than 15 years in the oil patch, up to in taking a position in Hawker?

"A new management team has come into Hawker, which is an old name that kind of stumbled," Mr. Prodan said. "These people were senior members of the team at Canadian Natural Resources." Talk about instant credibility. With new people parachuted in from an oil patch giant, Hawker's share price has surged about 60 per cent over the past two months.

Making money in oil and gas stocks used to be a lot easier for Mr. Prodan, who focuses on small growth-oriented companies with market capitalizations of less than $500-million (by comparison, Imperial Oil has a market cap of $30-billion). "These stocks are priced a little higher because more people have been following them," he said. "It's not the same as before in that there's more risk now."

Beaten-down Hawker Resources is one example of the kind of stock Mr. Prodan is looking at these days, while others are Highpine Oil & Gas and West Energy, both of which are active in the Pembina Nisku area of Alberta. This oil and gas deposit was discovered more than 30 years ago, but it was only in the past few years that it could be economically extracted thanks to new seismic technology.

http://www.globeinvestor.com/servlet/ArticleNews/story/GAM/20050528/STMAIN28

Amaunet

05/12/05 1:41 PM

Post #193

Hawker Resources announces first quarter 2005 results
Thursday May 12, 9:32 am ET

(All amounts are in Canadian dollars, unless stated otherwise)
CALGARY, May 12 /CNW/ - Hawker Resources Inc. ("Hawker" or "the Company") announced today its financial and operating results for the three months ended March 31, 2005. Included in this quarter was the sale of the Company's Lavoy assets on March 24, 2005 for a net purchase price of $82.6 million, together with the acquisition of Iteration Energy Inc. for shares in the company. The net effect of these two transactions was to eliminate the Company's bank debt of $51 million and put approximately $25 million in the bank, while bringing in a new management team to run the future operations of the Company.
Hawker had initiated a strategic review of its assets in November 2004, and restricted operational spending to existing production for the period leading up to the Lavoy sale. The Board of Directors chose not to accept any of the offers on the remainder of the Company's assets and instead brought in a new management team through the acquisition of Iteration. Hawker issued 5.75 million shares together with additional warrants for all the shares and assets of Iteration, including a group of senior petroleum professionals who had previously worked together at a major Canadian oil and gas company.

Year over year comparative results are not really meaningful given the restructuring of the Company. From January 1, 2005 to March 31, 2005, the Company achieved the following results:

- Production for the quarter averaged 5,545 BOE/d, with a March average
of 3,041 BOE/d from the non Lavoy assets.
- Net undeveloped land decreased from 191 thousand acres to 70 thousand
acres as a result of the Lavoy sale. However, non-Lavoy undeveloped
land increased by 7% during the quarter.
- Funds flow totaled $9.6 million or $ 0.22 per basic share.
- Operating plus transportation costs averaged $ 7.07 per BOE.
- Operating netbacks averaged $24.42 per BOE.

The Company issued 5,750,000 common shares and 5,000,000 warrants in conjunction with the Iteration acquisition. The Company also issued 4.7 million options associated with the same acquisition, 2.6 million of which are subject to shareholder ratification.
OUTLOOK FOR 2005

With the elimination of the debt and the acquisition of Iteration, the Company is poised for growth in the second half of 2005. The production base has declined through break-up and will be adversely affected by the McMahon gas plant turnaround in June which will shut in the Boundary Lake production for nineteen days, but a detailed review of the existing properties has shown numerous opportunities for reserve and volume additions later in the year. The Company will also focus on adding new lands for future exploration and on lowering operating costs on the existing properties. The details of the planned capital program for the rest of the year are currently being finalized and will be press released before the AGM.

MANAGEMENT'S DISCUSSION AND ANALYSIS
May 11, 2005

The following is Management's Discussion and Analysis (MD&A) of Hawker Resources Inc. operating and financial results for the quarter ended March 31, 2005 as well as information and estimates concerning the Company's future outlook based on currently available information. This discussion should be read in conjunction with Hawker's unaudited consolidated financial statements for the three months ended March 31, 2005 and the audited consolidated financial statements for the year ended December 31, 2004, together with accompanying notes. Readers should also refer to Hawker's 2004 Annual Information Form and Management's Discussion and Analysis dated March 23, 2005 for the year ended December 31, 2004. All financial information is reported in Canadian dollars and in accordance with Canadian generally accepted accounting principles (GAAP) unless noted otherwise.
Certain amounts in prior periods have been reclassified to enable comparison with the current period's presentation.

Natural gas converts to crude oil equivalent at a ratio of six thousand cubic feet to one barrel.

Additional information about Hawker Resources Inc. filed with Canadian securities commissions, including periodic quarterly and annual reports and the Annual Information Form (AIF), is available on-line at www.sedar.com.

Financial and Operating Highlights

Financial Highlights

Three Months Ended March 31,
($ Cdn thousands, except as noted) 2005 2004
-------------------------------------------------------------------------
Production revenue before royalties 20,317 19,271
Funds flow(2) 9,612 10,153
Basic ($/share)(1) 0.22 0.25
Net earnings (loss) (2,443) 258
Basic and diluted ($/share)(1) (0.06) 0.01
Total assets 156,867 202,267
Bank debt outstanding - 51,518
Capital expenditures
Exploration, development and other 5,363 22,985
Acquisitions 20,677 12,545
-------------------------------------------------------------------------
(1) Based on weighted average basic and diluted common and Class A
common shares outstanding for the period.

(2) Management uses funds flow and funds flow per share (before changes
in non-cash working capital and asset retirement expenditures) to
analyze operating performance and leverage. Funds flow and funds flow
per share as presented do not have any standardized meaning
prescribed by Canadian GAAP and therefore they may not be comparable
with the calculation of similar measures for other entities. Funds
flow as presented is not intended to represent operating cash flow or
operating profits for the period nor should it be viewed as an
alternative to cash flow from operating activities, net earnings or
other measures of financial performance.

Share Data

(000s) 2005 2004
-------------------------------------------------------------------------
Common shares, March 31 48,822 41,022
Weighted average common shares
- basic and diluted 43,774 40,105
Common shares as at May 11, 2005 48,822
Warrants, March 31 5,000
Stock options, March 31 5,372 554
Stock options as at May 11, 2005 5,057
-------------------------------------------------------------------------

Operating Highlights
2005 2004
-------------------------------------------------------------------------
Gas Production
Total natural gas (Bcf) 2.8 2.8
Daily average natural gas (Mcf/d) 31,154 30,838
Average price ($/Mcf) 6.73 6.36
Oil And Liquids Production
Total oil and liquids (Mbbls) 32 29
Daily average oil and liquids (Bbls/d) 352 325
Average price ($/Bbl) 45.36 37.78
Daily Average Production (BOE/d) 5,545 5,464
-------------------------------------------------------------------------
Land
Undeveloped land holdings (thousands of net acres) 70 206
-------------------------------------------------------------------------
Drilling
Wells drilled (net)
Gas 2.3 13.4
Oil - 0.5
Dry 0.5 1.0
Total 2.8 14.9
Success rate (%) 82 93
-------------------------------------------------------------------------

Hawker Overview

Hawker is a natural gas focused Canadian company with its core assets
presently in an area reaching from Northeast British Columbia to Southeast
Alberta.
The Company strives to control its operations whenever possible and to
maintain high working interests. Hawker believes this high level of
operatorship can translate to controlling costs, timing of capital outlays and
projects as well as providing competitive advantages for future opportunities.
On March 22, 2005, Hawker announced that it had concluded its strategic
review process and that it had entered into two transactions which will
provide the Company with a strong foundation for future growth. The two
transactions were Hawker's acquisition of Iteration Energy Inc. ("Iteration"),
a privately held oil and natural gas company, which provides Hawker with a
new, highly experienced senior management team; and Hawker's divestiture of
its non-operated Lavoy area assets for net cash consideration of $82.6 million
to two unrelated third parties.

Acquisition of Iteration Energy Inc.

Pursuant to a share purchase agreement dated March 20, 2005, the Company
purchased on March 21, 2005 all of the issued and outstanding shares of
Iteration in exchange for the issuance of 5,750,000 common shares of Hawker
and 5.0 million performance warrants. The 5,750,000 shares of Hawker are
subject to an escrow agreement and will be released as to a third of the
issued shares on each of March 20, 2006, 2007 and 2008, respectively. The
performance warrants have a term of 42 months, an exercise price of $2.90 per
share, and are exercisable only if Hawker's share price trades above $4.50 per
share on a weighted average basis for a period of more than 45 consecutive
calendar days within the next three and one half years. The warrants vested
May 6, 2005. In conjunction with this acquisition, the Company granted
4,730,000 stock options with an exercise price of $2.90 to employees of
Iteration that joined Hawker. Of these stock options, 2,572,354 were granted
subject to shareholder approval. The stock options vest over a three year
period and expire after five years.
At the time of the acquisition of Iteration, the assets of Iteration
included approximately $2.2 million in cash. It was a condition of the
transaction that certain individuals of Iteration sign employment contracts
with Hawker. The management team acquired brings extensive technical and
operational expertise in the Western Canadian Sedimentary Basin.
Subject to shareholder approval, the name of Hawker will be changed to
Iteration Energy Inc. at the next annual general meeting of the Company.

Divestiture of Lavoy Area Assets

Pursuant to two asset sale agreements dated March 21, 2005, Hawker sold
its Lavoy area assets to two unrelated third parties for cash consideration
totalling $85.0 million, with an effective date of January 1, 2005. The net
proceeds received from the asset sales of $82.6 million reflect adjustments
for operating results and capital expenditures between the effective dates and
the closing dates of March 24, 2005.

Quarterly Financial Data

($ thousands except per share data)
-------------------------------------------------------------------------
2005 2004 2003
------ ------------------------------ -------------------
Quarter ended Mar Dec Sept June Mar Dec Sept June
31 31 30 30 31 31 30 30
-------------------------------------------------------------------------
Revenues before
royalties 20,334 20,332 18,819 21,768 19,288 9,148 8,978 33
Net earnings
(loss) (2,443) (2,955) 614 595 258 3,609 (477) (707)
Net earnings
(loss) per
common share
- basic and
diluted (0.06) (0.07) 0.01 0.01 0.01 0.13 (0.02)(0.07)
-------------------------------------------------------------------------

Operating Results

Net Earnings (Loss)

Hawker incurred a net loss in the first quarter of 2005 of $2.4 million
as compared to net earnings of $0.3 million in the first quarter of 2004. The
first quarter 2005 financial results were favourably impacted by increased
production and higher benchmark crude oil and natural gas prices. These
impacts were more than offset by increased production expenses, general and
administrative expenses, depletion and depreciation charges and stock based
compensation charges.

Operating Netback

The Q1 2005 operating netback of $24.42/BOE increased from $24.33/BOE in
Q1 2004 on the strength of higher realized commodity prices. The impact of the
high commodity prices was partially offset by higher operating costs per
barrel of oil equivalent.

Operating Netback Three months ended March 31,
--------------------------------------
($/BOE) 2005 2004 % Change
-------------------------------------------------------------------------
Production revenue 40.71 38.76 5
Royalties (9.22) (9.44) (2)
Operating costs (6.48) (4.38) 48
Transportation costs (0.59) (0.61) 3
-------------------------------------------------------------------------
Operating netback 24.42 24.33 -
-------------------------------------------------------------------------

Production

Average daily production for the three months ended March 31, 2005
increased by 81 BOE/d as compared to the three months ended March 31, 2004.
Production decreases from the first quarter of 2004 at Lavoy and Boundary Lake
were offset by production from Wild River and increased production at Cold
Lake/Bonnyville during the first quarter of 2005.
Natural gas production from the Wild River area commenced in late
September 2004 and added 397 BOE/d to first quarter 2005 production.
Production increased by 214 BOE/d at Cold Lake/Bonnyville over the first
quarter of 2004 due to production from new wells. These production increases
were partially offset by production decreases of 308 BOE/d at Boundary Lake
due to natural reservoir decline and 190 BOE/d at Lavoy due to the sale of
Lavoy on March 24, 2005.
The sale of the Lavoy area will result in a decrease in Hawker's average
daily production of approximately 2,400 BOE/d. Second and third quarter 2005
production will also be impacted by plant turnarounds. The McMahon plant
shutdown will shut in approximately 2,000 BOE/d at Boundary Lake for 19 days
from June 21 to July 9, with the potential for production restrictions both
before and after these dates. Turnaround activities at Cold Lake/Bonnyville
will reduce production by approximately 400 BOE/d for an estimated three to
four days during the second quarter.

Daily Production Three months ended March 31,
--------------------------------------
2005 2004 % Change
-------------------------------------------------------------------------
Natural gas (Mcf/d) 31,154 30,838 1
Crude oil and natural gas liquids
(Bbls/d) 352 325 8
Total (BOE/d) 5,545 5,464 1
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Commodity Prices

Industry Benchmarks Three months ended March 31,
(Average for the period) 2005 2004
-------------------------------------------------------------------------
Natural gas US$/Mcf at Henry Hub 6.20 6.00
Natural gas (Alberta Spot) Cdn$/Mcf at AECO 6.88 6.61
WTI crude oil US$/Barrel at Cushing 49.70 35.00
Canadian 0.3% par crude Cdn$/barrel at Edmonton 62.02 46.00
-------------------------------------------------------------------------

Realized Commodity Prices Three months ended March 31,
--------------------------------------
(Includes hedging receipts & payments) 2005 2004 % Change
-------------------------------------------------------------------------
Natural gas ($/Mcf) 6.73 6.47 4
Crude oil and natural gas liquids
($/Bbl) 45.36 37.78 20
Total ($/BOE) 40.71 38.76 5
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Revenue

Production revenue was $20.3 million in the first quarter of 2005,
compared with $19.3 million in the first quarter of 2004. The production
revenue growth was mainly due to higher benchmark pricing for natural gas and
crude oil.

Production Revenue Three months ended March 31,
--------------------------------------
($ thousands) 2005 2004 % Change
-------------------------------------------------------------------------
Production revenue, before hedging 20,317 19,121 6
Hedging receipts - 150
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production revenue 20,317 19,271 5
-------------------------------------------------------------------------

Hedging and Risk Management

In certain circumstances, fixed price commodity contracts or commodity
derivative contracts are used to reduce the Company's exposure to adverse
fluctuations in commodity prices to protect future cash flow used to finance
the Company's capital expenditure program. The Company uses hedge accounting
for gains and losses relating to commodity derivative contracts which settle
via net cash payment and that meet hedge criteria. These gains and losses are
recognized as part of natural gas sales concurrently with the hedged
transaction and, accordingly, no recognition of mark-to-market gains or losses
are included in income. The Company does not enter into financial instruments
for trading or speculative purposes.
At December 31, 2004, the Company did not have any commodity derivative
contracts outstanding. The following aggregator plantgate sales contracts were
outstanding at March 31, 2005:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) Contract Price Expiry
(GJ/d)
-------------------------------------------------------------------------
Cogeneration Fuel Supply 33 $1.959 - $2.217 October 31, 2008
Daily Declining Profile 90(1) Netback(2) October 31, 2011
-------------------------------------------------------------------------

Notes:
(1) The Company's obligations under this contract will, on November 1 of
each succeeding year, decline to the following:

-------------------------------------------------------------------------
Date Obligation (GJ/d)
-------------------------------------------------------------------------
November 1, 2005 77
November 1, 2006 and thereafter 70
-------------------------------------------------------------------------

(2) TransCanada Pipelines Limited netback pricing.

Royalties

Royalty expense was $4.5 million in the first quarter of 2005, compared
with $4.7 million in the first quarter of 2004. Royalty expense for the first
quarter of 2005 was favourably impacted by the reversal of a $0.2 million
overaccrual of freehold mineral tax relating to 2004.

Royalties Three months ended March 31,
--------------------------------------
($ thousands except where noted) 2005 2004 % Change
-------------------------------------------------------------------------
Royalties 4,479 4,695 (5)
Per BOE ($/BOE) 9.22 9.44 (2)
Percentage of revenue (%) 22 24
-------------------------------------------------------------------------

Production Expenses

Production expenses were $3.2 million in the first quarter of 2005,
compared with $2.2 million in the first quarter of 2004. The increase was
primarily due to the first quarter of 2004 not including late billings of
operating expenses of $0.5 million on non-operated properties. The increase
was also due to production from higher operating cost areas in 2005: Wild
River which was not on production in Q1 2004 and Manitou Lake where there was
only 17 days of production in Q1 2004.

Production Expenses Three months ended March 31,
--------------------------------------
($ thousands) 2005 2004 % Change
-------------------------------------------------------------------------
Field operating costs 3,107 2,057 51
Allocated general and administrative
expenses 124 122 2
-------------------------------------------------------------------------
Total production expenses 3,231 2,179 48
-------------------------------------------------------------------------

Production Expenses per BOE Three months ended March 31,
--------------------------------------
($ per BOE) 2005 2004 % Change
-------------------------------------------------------------------------
Field operating costs 6.23 4.13 51
Allocated general and administrative
expenses 0.25 0.25 -
-------------------------------------------------------------------------
Total production expenses 6.48 4.38 48
-------------------------------------------------------------------------

General and Administrative Expenses

General and administrative expenses, net of overhead recoveries on
operated properties, were $1.7 million in the first quarter of 2005, compared
with $1.2 million in the first quarter of 2004. General and administrative
expenses for the first quarter of 2005 included $0.3 million relating to
employee retention arrangements relating to the corporate strategic review.

General and Administrative Expenses Three months ended March 31,
-------------------------------------
($ thousands except where noted) 2005 2004 % Change
-------------------------------------------------------------------------
Gross general & administrative
expenses 2,281 2,060 11
Overhead recoveries (115) (341) (66)
Allocation to production expense (120) (122) (2)
Capitalized overhead (340) (377) (10)
-------------------------------------------------------------------------
Net general & administrative expenses 1,706 1,220 40
Per BOE ($/BOE) 3.42 2.45 40
-------------------------------------------------------------------------

Stock Based Compensation Expense

As approved by Hawker's shareholders, the Company's stock option plan was
amended effective April 1, 2004 to provide stock option holders the choice
upon exercise to receive a cash payment in exchange for surrendering the
option. The cash payment is equal to the appreciated value of the stock option
as determined based on the difference between the option's exercise price and
the Company's share price at the time of exercise. For the period ended
March 31, 2005, stock based compensation expense of $0.3 million relating to
stock options was recognized based on the appreciated value of the outstanding
stock options as determined using the March 31, 2005 closing share price.
Additional stock based compensation expense or recoveries in future periods is
dependent on the movement of the Company's share price and the number of
options outstanding. Based on the March 31, 2005 share price of $4.75, had all
of the 5,372,201 stock options outstanding been vested, stock based
compensation expense and a corresponding liability of $9,083,000 would have
been recognized.

Interest Expense

Interest expense on current and long-term debt for was $0.55 million for
the first three months of 2005 as compared with $0.65 million of the first
three months of 2004. The decrease was a result of lower average debt levels
during Q1 2005 due to the reduced level of capital expenditures incurred by
the Company.

Interest Expense Three months ended March 31,
--------------------------------------
($ thousands except where noted) 2005 2004 % Change
-------------------------------------------------------------------------
Interest expense 554 646 (14)
Per BOE ($/BOE) 1.11 1.30 (15)
-------------------------------------------------------------------------

Depletion and Depreciation

Depletion and depreciation expense was $12.8 million for the first
quarter of 2005 compared to $9.7 million for the first quarter of 2004. This
increase was due to a higher depletion and depreciation rate. The depletion
and depreciation rate increase was primarily due to the acquisition of Zorin,
coupled with high finding and development costs in 2004.

Depletion and Depreciation Expense Three months ended March 31,
--------------------------------------
($ thousands except where noted) 2005 2004 % Change
-------------------------------------------------------------------------
Depletion and depreciation expense 12,814 9,661 33
Per BOE ($/BOE) 25.68 19.43 31
-------------------------------------------------------------------------

Taxes

Current tax expense for the first quarter of 2005 was comprised of:

($ thousands)
-------------------------------------------------------------------------
Capital tax 42
Part XII.6 tax 107
Part I tax reassessed on predecessor companies 169
-------------------------------------------------------------------------
Current tax expense 318
-------------------------------------------------------------------------

Capital Expenditures

Exclusive of the Iteration transaction, the Company spent $5.4 million on
exploration and development activities during the first three months of 2005.
In addition, Iteration was acquired in March for $20.7 million, net of cash
acquired. The reduced level of capital spending in the first quarter of 2005
was reflective of the focus on the corporate strategic review process.

-------------------------------------------------------------------------
Capital Expenditures Three months ended March 31,
($ thousands) 2005 2004
-------------------------------------------------------------------------
Exploration & development expenditures 5,363 22,843
Acquisitions, net of cash acquired 20,677 12,545
Other - 142
-------------------------------------------------------------------------
Total 26,040 35,530
-------------------------------------------------------------------------

On March 24, 2005, Hawker closed the sale of its Lavoy area assets to two
unrelated third parties for net cash consideration of $82.6 million.

Liquidity and Capital Resources

On March 24, 2005, the Company received net proceeds from the divestiture
of the Lavoy area assets in the amount of $82.6 million. The proceeds were
used to retire bank debt, at which time the Company's credit facility was
cancelled. Remaining proceeds were applied to working capital.
In January 2005, the pharmaceutical manufacturing facility and remaining
equipment were sold for net proceeds of $2.1 million. Proceeds of $1.2 million
were applied to the repayment of the current bank loan with the remaining
$0.9 million of proceeds used for working capital purposes.
The Company has entered into preliminary discussions with a Canadian
Chartered bank with regards to a new credit facility. The Company anticipates
that the amount of the new credit facility combined with cash flow from
operations and existing cash on hand will be sufficient to fund the
anticipated capital expenditure program.

Related Party Transactions

From time to time, the Company entered into contracts with service
companies that directors of Hawker are also directors of. The services and
supplies were invoiced to Hawker at standard company prices.

Outlook for 2005

With the elimination of the debt and the acquisition of Iteration, the
Company is poised for growth in the second half of 2005. The production base
has declined through break-up and will be adversely affected by the McMahon
gas plant turnaround in June that will shut in the Boundary Lake production
for nineteen days. A detailed review of the existing properties has shown
numerous opportunities for reserve and volume additions later in the year. The
Company will also focus on adding new lands for future exploration and on
lowering operating costs on the existing properties.

Advisory - Forward-Looking Information

This MD&A contains forward-looking information with respect to Hawker
Resources Inc.
The use of any of the words "anticipate," "continue," "estimate,"
"expect," "may," "will," "project," "should," "believe," "outlook," and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from
those anticipated in our forward-looking statements. We believe the
expectations reflected in these forward-looking statements are reasonable.
However, we cannot assure the reader that these expectations will prove to be
correct. The reader should not unduly rely on forward-looking statements
included in this report. These statements speak only as of the date of the
MD&A, being May 11, 2005.
In particular, this MD&A contains forward-looking statements pertaining
to the following:

- The quantity and recoverability of our reserves;
- The timing and amount of future production;
- Prices for natural gas produced;
- Operating and other costs;
- Business strategies and plans of Management;
- Supply and demand of natural gas;
- Expectations regarding our ability to raise capital and to add to our
reserves through acquisitions as well as exploration and development;
- The focus of capital expenditures on development activity rather than
exploration;
- The sale, farming in, farming out or development of certain
exploration properties using third party resources;
- The use of development activity and acquisitions to replace and add to
reserves;
- The impact of changes in natural gas prices on cash flow after
hedging;
- Drilling plans;
- The existence, operations and strategy of the commodity price risk
management program;
- The approximate and maximum amount of forward sales and hedging to be
employed;
- The Company's acquisition strategy, and the criteria to be considered
and the benefits to be derived;
- The impact of Canadian federal and provincial governmental regulation
on the Company relative to other issuers of similar size;
- Our treatment under governmental regulatory regimes;
- The goal to sustain or grow production and reserves through prudent
management and acquisition;
- The emergence of accretive growth opportunities; and
- The Company's ability to benefit from the combination of growth
opportunities and the means to grow through the capital markets.

Our actual results could differ materially from those anticipated in our
forward-looking statements as a result of the risk factors set forth below and
elsewhere in this MD&A which include but are not limited to:

- Volatility in market prices for natural gas;
- Risks inherent in our operations;
- Uncertainties associated with estimating reserves;
- Competition for, among other things: capital, acquisitions of
reserves, undeveloped lands and skilled personnel;
- Incorrect assessments of the value of acquisitions;
- Geological, technical, drilling and process problems;
- General economic conditions including fluctuations in the price of
natural gas;
- Royalties payable in respect of Hawker's production;
- Governmental regulation of the oil and gas industry, including
environmental regulation;
- Fluctuation in foreign exchange or interest rates;
- Unanticipated operational events that can reduce production or cause
production to be shut-in or delayed;
- Stock market volatility and market valuations; and
- The need to obtain required approvals from regulatory authorities.

The above list of risk factors should not be construed as exhaustive.

Hawker Resources Inc.
Consolidated Balance Sheets
As at
-------------------------------------------------------------------------
(Unaudited) March 31 December 31
(in thousands of dollars) 2005 2004
-------------------------------------------------------------------------

ASSETS

Current
Cash $ 27,275 $ -
Restricted cash (Note 3) 306 -
Funds held in escrow (Note 3) 5,302 -
Accounts receivable 10,528 10,691
Assets held for sale - 2,119
Prepaids and other current assets 1,725 2,265
-------------------------------------------------------------------------
-------------------------------------------------------------------------
45,136 15,075

Future income taxes - 2,080

Property, plant and equipment
(Notes 2(c), 4, 6 and 7) 91,054 185,112

Goodwill (Note 2(b)) 20,677 -
-------------------------------------------------------------------------
$ 156,867 $ 202,267
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current
Accounts payable and accrued liabilities $ 17,349 $ 22,103
Current portion of equipment finance
obligations (Note 6) 123 111
Current portion of capital lease
obligations (Note 7) 444 436
Bank loan - 1,243
-------------------------------------------------------------------------
17,916 23,893

Bank loan (Note 5) - 50,275

Equipment finance obligations (Note 6) 182 214

Capital lease obligations (Note 7) 616 729

Future income taxes 495 -

Leasehold inducements 616 661

Asset retirement obligations (Note 8) 4,485 8,234
-------------------------------------------------------------------------
24,310 84,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Shareholders' Equity (Note 9)
Share capital 139,201 126,618
Warrants outstanding 4,166 -
Contributed surplus - 10
Deficit (10,810) (8,367)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
132,557 118,261
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 156,867 $ 202,267
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.

Consolidated Statements of Earnings (Loss) and Deficit
For the Three Months Ended March 31
-------------------------------------------------------------------------
(Unaudited)
(in thousands of dollars, except per share amounts) 2005 2004
-------------------------------------------------------------------------
(Note 2(c))
Revenue
Production revenue $ 20,317 $ 19,271
Royalties, net of Alberta Royalty Tax Credit (4,479) (4,695)
-------------------------------------------------------------------------
15,838 14,576
Interest income 17 17
-------------------------------------------------------------------------
-------------------------------------------------------------------------
15,855 14,593
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Expenses (Note 11)
Production 3,231 2,179
Transportation 297 303
General and administrative 1,706 1,220
Stock based compensation (Note 10) 278 75
Interest on current debt 6 148
Interest on long-term debt 548 498
Depletion and depreciation 12,814 9,661
-------------------------------------------------------------------------
18,880 14,084
-------------------------------------------------------------------------
Earnings (loss) before the following (3,025) 509

Loss on disposal of investment in subsidiary (58) -

Operating costs associated with assets held for sale (4) (36)
-------------------------------------------------------------------------
Earnings (loss) before taxes (3,087) 473
-------------------------------------------------------------------------

Taxes
Future income tax recovery 962 -
Current taxes (318) (215)
-------------------------------------------------------------------------
644 (215)
-------------------------------------------------------------------------

Net earnings (loss) (2,443) 258

Deficit, beginning of period (8,367) (6,879)
-------------------------------------------------------------------------

Deficit, end of period $ (10,810) $ (6,621)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Basic and diluted net earnings (loss)
per common share (Note 9) $ (0.06) $ 0.01
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.

Consolidated Statements of Cash Flows
Three Months Ended March 31
-------------------------------------------------------------------------
(Unaudited)
(in thousands of dollars) 2005 2004
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net earnings (loss) $ (2,443) $ 258
Add (deduct) non-cash items:
Depletion and depreciation 12,814 9,661
Accretion expense 206 90
Loss on disposal of investment in subsidiary 42 -
Future income tax recovery (962) -
Amortization of leasehold inducements (45) 69
Stock-based compensation (Note 10) - 75
-------------------------------------------------------------------------
9,612 10,153
Asset retirement expenditures (107) -
Net change in non-cash working capital (Note 13) (8,984) (657)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
522 9,496
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment (Note 2(c)) 82,608 718
Cash consideration on acquisition of subsidiary,
net of cash acquired (Note 2(b)) (353) -
Cash consideration on acquisition of oil and
gas properties - (1,882)
Additions to oil and gas properties (5,363) (22,843)
Additions to other capital assets - (142)
Proceeds on disposal of assets held for sale 2,119 -
Net change in non-cash working capital (Note 13) 4,914 12,767
-------------------------------------------------------------------------
83,925 (11,382)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Net change in bank loan (51,518) 2,212
Share issue costs (38) (24)
Net change in non-cash working capital (Note 13) (7) (302)
-------------------------------------------------------------------------
(51,563) 1,886
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Increase in cash and cash equivalents 32,883 -

Cash and cash equivalents, beginning of period - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Cash and cash equivalents,
end of period (Note 3) $ 32,883 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplemental disclosure of cash flow information (Note 13)

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.

Notes to the Consolidated Financial Statements
Three Months ended March 31, 2005 and 2004
(Unaudited)
(Tabular amounts in thousands of dollars, unless otherwise noted)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements of Hawker Resources Inc.
(the "Company" or "Hawker") have been prepared in accordance with
Canadian generally accepted accounting principles and are consistent with
the accounting policies and methods of computation used in the
preparation of the audited consolidated financial statements as at
December 31, 2004. The interim consolidated financial statements contain
disclosures which are supplemental to the Company's annual financial
statements. Certain disclosures, which are normally required to be
included in the notes to the annual financial statements, have been
condensed or omitted. The interim consolidated financial statements
should be read in conjunction with the Company's audited consolidated
financial statements and notes thereto for the year ended December 31,
2004.

Basis of Consolidation

These consolidated financial statements include the accounts of Hawker,
its wholly owned subsidiary and its partnership.

2. ACQUISITIONS AND DISPOSITIONS

(a) Mar Oil Company

During January 2005, the Company disposed of its wholly owned subsidiary,
Mar Oil Company. Hawker received as consideration an unsecured promissory
note with a maximum $1,000,000 conditional principal amount, based on the
value of the proven reserves as of July 1, 2006, discounted at 15%, on
the lands held by Mar Oil Company plus net working interest revenue
received on these lands to July 1, 2006. The promissory note is payable
in annual instalments, calculated based on cash flow from the lands,
commencing on August 31, 2007.

The promissory note may be prepaid in full by the purchaser by the
payment of (i) $250,000 by June 30, 2005; (ii) $350,000 after July 1,
2005 and on or before December 31, 2005; or (iii) $500,000 after
January 1, 2006 and on or before June 30, 2006.

The Company did not assign value to the promissory note on the disposal
of Mar due to the unsecured nature of the promissory note and
uncertainties with regard to its ultimate repayment. A loss on the
disposition of Mar in the amount of $58,000 was recognized.

(b) Iteration Energy Inc.

On March 21, 2005 the Company acquired all of the shares of Iteration
Energy Inc. The acquisition was accounted for by the purchase method and
the purchase price was allocated as follows:

Allocation of purchase price:

Cash $ 2,175
Goodwill 20,677
-------------------------------------------------------------------------
Total purchase price $ 22,852
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consideration was comprised of:
Issue of 5,750,000 common shares using an
ascribed value of $2.81 per share $ 16,158
Issue of 5,000,000 warrants using an ascribed value
of $0.8332 per warrant 4,166
Cash 2,528
-------------------------------------------------------------------------
Total consideration $ 22,852
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The value of the common shares issued for the acquisition of Iteration
was based on the average closing price of the Company's shares on the
five trading days preceding the closing of the transaction. The results
of operations for Iteration have been included in the consolidated
financial statements since March 21, 2005.

The fair value of the warrants granted was estimated to be $4,166,000 as
at the date of grant using the Black-Scholes option pricing model and the
following weighted average assumptions:

Three Months Ended March 31, 2005
-------------------------------------------------------------------------
Risk-free interest rate (%) 3.75
Expected life (years) 3.50
Expected volatility (%) 35.72
Expected dividend yield (%) 0
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(c) Sale of Lavoy Area Properties

On March 24, 2005, the Company sold its Lavoy area properties to two
unrelated third parties for gross proceeds totaling $85,000,000. After
adjustments for operating results and capital expenditures for the period
between the effective date and the closing date, the Company received net
proceeds of $82,608,000. The proceeds were applied to eliminate bank
debt, with the remaining proceeds applied to working capital.

Operating results from the Lavoy area are included in the consolidated
financial statements from January 1, 2005 to March 24, 2005, the closing
date of the sale. No gain or loss on the disposition was recognized as
crediting the net proceeds to capital costs did not result in a change of
20 percent or more in the depletion and depreciation rate.

3. CASH AND CASH EQUIVALENTS

-------------------------------------------------------------------------
March 31, December 31,
2005 2004
-------------------------------------------------------------------------
Cash $ 27,275 $ -
Restricted cash 306 -
Funds held in escrow 5,302 -
-------------------------------------------------------------------------
$ 32,883 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Restricted cash is comprised of funds held on deposit with a Canadian
Chartered bank in an amount equal to the total irrevocable standby
letters of credit issued by the Company.

Funds held in escrow relate to the sale of the Lavoy assets. Funds were
held in escrow pending the expiry of the rights of first refusal on
certain lands. The rights of first refusal periods have since expired and
all of the funds held in escrow were released to the Company subsequent
to March 31, 2005.

4. PROPERTY, PLANT AND EQUIPMENT

-------------------------------------------------------------------------
March 31, December 31,
2005 2004
-------------------------------------------------------------------------
Oil and gas properties $ 155,765 $ 237,009
Other 589 589
-------------------------------------------------------------------------
156,354 237,598
Less accumulated depletion and depreciation 65,300 52,486
-------------------------------------------------------------------------
$ 91,054 $ 185,112
-------------------------------------------------------------------------
-------------------------------------------------------------------------

At March 31, 2005, unproved properties and seismic amounting to
$13,225,000 (December 31, 2004: $21,416,000) have been excluded from the
depletion and depreciation calculation. Future development costs on
proven undeveloped reserves of $570,000 (December 31, 2004: $1,633,000)
are included in the depletion and depreciation calculation.

For the three month period ended March 31, 2005, the Company capitalized
$340,000 (three months ended March 31, 2004: $377,000) of overhead
directly related to exploration and development activities.

Property, plant and equipment include assets under capital lease having a
carrying value of $1,160,000 as at March 31, 2005.

5. BANK LOAN

The Company applied proceeds received from the sale of its Lavoy area
property disposition (see note 2(c)) to repay all amounts outstanding
under its extendible revolving term credit facility, at which time the
facility was cancelled.

6. EQUIPMENT FINANCE OBLIGATIONS

The Company entered into an equipment financing agreement with a supplier
of gas well monitoring equipment. Equipment purchased under the financing
agreement had a gross cost of $612,000 with $381,000 net to Hawker. The
financed amount bears interest at 8% per annum, compounded monthly, with
gross monthly payments of $19,000 required until July of 2007.

Net equipment finance obligations $ 381
Net principal portion of payments made (76)
-------------------------------------------------------------------------
Net equipment finance obligations, March 31, 2005 $ 305
-------------------------------------------------------------------------
-------------------------------------------------------------------------

7. CAPITAL LEASE OBLIGATIONS

During 2004, the Company entered into an agreement to lease a new
compressor for a two-year term. It is anticipated that the Company will
purchase the compressor at the end of the two-year term and has accounted
for this lease as a capital lease. Assets under capital lease amounting
to $1,277,000 are included in property, plant and equipment and
depreciated with other equipment costs on the unit of production method.
The interest rate implicit in the lease is 7.35%. Future minimum lease
payments under the capital lease are as follows:

-------------------------------------------------------------------------
2005 $ 407
2006 817
-------------------------------------------------------------------------
$ 1,224
-------------------------------------------------------------------------
-------------------------------------------------------------------------

8. ASSET RETIREMENT OBLIGATIONS

The total future asset retirement obligations were estimated by
management based on the Company's net working interest in all wells and
facilities, estimated costs to reclaim and abandon wells and facilities
and the estimated timing of the costs to be incurred in future periods.
The Company estimates the undiscounted cash flows related to asset
retirement obligations, adjusted for inflation, to be incurred over the
estimated reserve life of the underlying assets will total approximately
$9,136,000. The fair value at March 31, 2005 is $4,485,000 using a
discount rate of six percent and an inflation rate of two percent. As at
March 31, 2005, no funds have been set aside to settle this obligation.

Three Months Ended
March 31, March 31,
2005 2004
-------------------------------------------------------------------------
Balance, beginning of period $ 8,234 $ 3,499
Increase in liabilities 25 696
Settlement of liabilities (107) -
Decrease in liabilities due to
property dispositions (3,873) -
Accretion expense 206 90
-------------------------------------------------------------------------
Balance, end of period $ 4,485 $ 4,285
-------------------------------------------------------------------------
-------------------------------------------------------------------------

9. SHARE CAPITAL

(a) Authorized

Unlimited number of voting common shares without par value.
Unlimited number of preferred shares to be issued in series.

(b) Common Shares Issued

-------------------------------------------------------------------------
Number of
Shares Amount
-------------------------------------------------------------------------
Balance, January 1, 2005 43,071,681 $ 126,618
Issued on acquisition of Iteration (Note 2(b)) 5,750,000 16,158
Share issue costs, net of tax effect - (25)
Tax benefits renounced - (3,550)
-------------------------------------------------------------------------
Balance, March 31, 2005 48,821,681 $ 139,201
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(c) Contributed Surplus

-------------------------------------------------------------------------
2005
-------------------------------------------------------------------------
Balance, January 1 $ 10
Transfer to stock compensation liability (10)
-------------------------------------------------------------------------
Balance, March 31 $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Under the previous stock option plan, the Company had recognized $207,000
for stock based compensation in contributed surplus. As a result of the
amendments to the stock option plan in the second quarter, the Company
recorded a liability of $197,000 and reduced contributed surplus by the
same amount based on the appreciated value of the outstanding stock
options as determined using the June 30, 2004 closing share price. Based
on the March 31, 2005 closing share price, the Company increased its
liability for stock based compensation and reduced contributed surplus by
the remaining $10,000 for stock based compensation recognized under the
previous stock option plan.

(d) Flow-Through Shares

During 2004, the Company issued common shares on a flow-through basis for
gross proceeds of $10,558,000 to finance certain oil and gas expenditures
to be incurred in 2005. The renouncement of these expenditures was made
to the purchasers of these shares in 2005 and accordingly, share capital
has been reduced by the amount of the tax benefits associated with these
expenditures. The corresponding future tax liability was also recognized
in 2005.

(e) Stock Options

The Company has a stock option plan that provides for the issuance of
options to its directors, officers, employees and non-employees to
acquire up to 2,981,513 common shares. The dates on which options vest
are set by the board of directors at the time of grant. The exercise
price of an option granted is the closing price of the Company's stock on
the last trading date prior to the grant date. The dates on which options
expire are also set by the board of directors at the time of grant and
cannot exceed ten years.

During March 2005, options to purchase 2,572,354 common shares at an
exercise price of $2.90 were granted subject to shareholder ratification
at the next annual meeting of shareholders.

Outstanding stock options to acquire common shares through the stock
option plan are as follows:

-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
Weighted Weighted
average average
exercise exercise
Number of price Number of price
Options $ Options $
-------------------------------------------------------------------------
Outstanding at
January 1 747,200 4.93 444,001 4.74
Granted 4,730,000 2.90 124,600 5.22
Surrendered for
cancellation (31,666) 3.69 - -
Forfeited (73,333) 4.83 (15,000) 3.45
-------------------------------------------------------------------------
Outstanding at
March 31 5,372,201 3.15 553,601 4.89
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Options exercisable
at March 31 172,700 5.97 15,751 34.27
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The following table summarizes information about the stock options
outstanding at March 31, 2005:

-------------------------------------------------------------------------
Weighted
Number average Weighted Number Weighted
outstanding remaining average exercisable average
March 31, contractual exercise March 31, exercise
2005 life (years) price 2005 price
-------------------------------------------------------------------------
Range of
exercise prices
$2.90 to $4.00 5,008,000 4.88 $2.98 131,666 $3.51
$4.01 to $5.00 172,000 4.10 $4.90 15,000 $4.71
$5.01 to $9.00 182,200 4.05 $5.30 16,033 $5.50
$9.01 to $30.00 2,188 4.84 $14.73 2,188 $14.73
$30.01 to $90.00 7,813 3.05 $48.33 7,813 $48.33
-------------------------------------------------------------------------
5,372,201 4.82 $3.15 172,700 $5.97
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Subsequent to March 31, 2005, options to purchase 303,768 common shares
at a weighted average exercise price of $4.80 were forfeited, options to
purchase 91,666 common shares at a weighted average exercise price of
$3.53 were surrendered for cancellation in return for a direct cash
payment and options to purchase 80,000 common shares at a weighted
average exercise price of $4.80 were granted.

(f) Warrants

Warrants to purchase 5,000,000 common shares at $2.90 were issued to
Iteration shareholders. The warrants vest the first day after the common
shares of the Company have traded at a weighted average price of not less
than $4.50 per common share for any 45 consecutive calendar days within a
42-month period. The warrants expire on September 21, 2008. On May 6,
2005, all of the warrants vested.

(g) Per Share Amounts

Three Months Ended March 31,
2005 2004
-------------------------------------------------------------------------
Weighted average common shares outstanding 43,774,459 40,061,207
Effect of dilutive stock options - 43,788
-------------------------------------------------------------------------
Weighted average diluted common shares
outstanding 43,774,459 40,104,995
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the period ended March 31, 2005 all of the stock options and warrants
were excluded from the computation of diluted loss per share as the
effect on the net loss for the period of the issue of additional shares
on the conversions would be anti-dilutive.

10. STOCK BASED COMPENSATION

As approved by Hawker's shareholders, the Company's stock option plan was
amended effective April 1, 2004 to provide stock option holders the
choice upon exercise to receive a cash payment in exchange for
surrendering the option. The cash payment is equal to the appreciated
value of the stock option as determined based on the difference between
the option's exercise price and the Company's share price at the time of
exercise. For the period ended March 31, 2005, stock based compensation
expense of $278,000 relating to stock options was recognized based on the
appreciated value of the outstanding stock options as determined using
the March 31, 2005 closing share price. Additional stock based
compensation expense or recoveries in future periods is dependent on the
movement of the Company's share price and the number of options
outstanding. Based on the March 31, 2005 share price of $4.75, had all of
the 5,372,201 stock options outstanding been vested, stock based
compensation expense and a corresponding liability of $9,083,000 would
have been recognized.

11. RELATED PARTY TRANSACTIONS

From time to time, the Company entered into contracts with service
companies that directors of Hawker are also directors of. The services
and supplies were invoiced to Hawker at standard company prices.

All transactions were recorded at their exchange amounts.

12. FINANCIAL INSTRUMENTS

The following aggregator plantgate sales contracts were outstanding as at
March 31, 2005:

-------------------------------------------------------------------------
Transaction Type Volume Contract Price Expiry
(GJ/d) (GJ/d)
-------------------------------------------------------------------------
Cogeneration Fuel Supply 33 $1.959 - $2.217 October 31, 2008
Daily Declining Profile 90(1) Netback(2) October 31, 2011
-------------------------------------------------------------------------

Notes:

(1) The Company's obligations under this contract will, on November 1 of
each succeeding year, decline to the following:

-------------------------------------------------------------------------
Date Obligation (GJ/d)
-------------------------------------------------------------------------
November 1, 2005 77
November 1, 2006 and thereafter 70
-------------------------------------------------------------------------

(2) TransCanada Pipelines Limited netback pricing.

Based on independent price forecasts, had all of the above contracts been
closed on March 31, 2005, a loss of $202,000 would have been realized.

13. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Changes in non-cash working capital were comprised of the following:

-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
Accounts receivable $ 163 $ (1,170)
Prepaids and other current assets 540 (25)
Accounts payable and accrued liabilities (4,754) 13,977
Less working capital deficiency on acquisitions - (974)
Less working capital on dispositions (26) -
-------------------------------------------------------------------------
Net change $ (4,077) $ 11,808
-------------------------------------------------------------------------

Net change by activity:
Operating $ (8,984) $ (657)
Investing 4,914 12,767
Financing (7) (302)
-------------------------------------------------------------------------
Net change $ (4,077) $ 11,808
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Additional information:
-------------------------------------------------------------------------
2005 2004
-------------------------------------------------------------------------
Cash interest paid $ 551 $ 811
Cash taxes paid 241 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Forward Looking Statements

Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers and ability to access sufficient capital from
internal and external sources; as a consequence, actual results may differ
materially from those anticipated. The Company assumes no obligation to update
the forward-looking statements or to update the reasons why actual results
could differ from those contemplated by the forward-looking statements.

Hawker Resources Inc.

Hawker (www.hawkerinc.com) is an Alberta-based corporation engaged in the
business of exploring for and developing oil and natural gas reserves in
western Canada and acquiring natural resource properties. Hawker's common
shares are listed on the Toronto Stock Exchange under the symbol "HKR".

http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256

For further information

Please Contact: Hawker Resources Inc., Mr. Brian Illing, President & CEO, Tel: (403) 290-4867, Fax: (403) 290-4875

Source: Hawker Resources Inc.

http://biz.yahoo.com/cnw/050512/hawker_q1_results.html?.v=1

Amaunet

03/25/05 10:04 AM

Post #192

Re: #189: @Amaunet - Hawker Resources Inc. announces corporate transactions and new

Hawker Resources Inc. conference call time
Tuesday March 22, 8:50 am ET

CALGARY, March 22 /CNW/ - Hawker Resources Inc. ("Hawker", or the "Company") (HKR:TSX) will be holding a conference call to introduce the Company's new management team and discuss Hawker's refocused operations today at 9:30 a.m. Mountain Standard Time (11:30 a.m. Eastern Standard Time). To participate, please call 1-403-232-6311 from Calgary, 1-416-883-0139 from Toronto, or 1-888-458-1598 from other locations, and enter the reservation number 74998 followed by the No. sign. The conference call will also be recorded and available for review until midnight on Tuesday, March 29, 2005 by calling 1-403-232-0933 from Calgary, or 1-877-653-0545 from other locations, and entering the reservation number 272238 followed by the No. sign.
Hawker Resources Ltd.

Hawker (www.hawkerinc.com) is an Alberta-based corporation engaged in the business of exploring for and developing oil and natural gas reserves in western Canada and acquiring natural resource properties. Hawker's common shares are listed on the Toronto Stock Exchange under the symbol "HKR".

%SEDAR: 00002576E

http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256

For further information

Hawker Resources Ltd., Mr. Brian Illing, President & CEO, Tel: (403) 290-4867, Fax: (403) 290-4875

Amaunet

03/25/05 10:02 AM

Post #191

Re: #189: @Amaunet - Hawker Resources Inc. announces corporate transactions and new

Hawker Resources Announces 2004 Year-End Results
Thursday March 24, 8:02 am ET

http://biz.yahoo.com/cnw/050324/hawker_q4_results_1.html

This is of little consequence since Hawker has been taken over by a group of well-pedigreed executives led by Brian Illing, driller par excellence, with $25.0 million in cash for future growth.

-Am

Mr. Brian Illing, the new President and CEO of Hawker, has 28 years of experience as a geologist, manager and executive in the oil industry. He was Executive Vice President at Canadian Natural Resources Ltd. ("CNRL"), and led its exploration department from 1993 to late 2003. He was the hands-on technical leader during this time and significantly contributed to the growth of CNRL from approximately 35,000 BOE/d to over 450,000 BOE/d. Mr. Illing was CNRL's prime technical reviewer and decision-maker for growth projects, and oversaw the drilling of more than 6,000 wells throughout the WCSB, with a success rate greater than 90%. Mr. Illing completed his B.Sc. (Geology) and M.Sc. (Geophysics) degrees in England at Durham University and Birmingham University, respectively.

Hawker will have approximately $25.0 million in cash, no debt.

Amaunet

03/22/05 12:51 PM

Post #190

Re: #189: @Amaunet - Hawker Resources Inc. announces corporate transactions and new

Hawker Resources sells Lavoy assets for $85M, acquires Iteration Energy

CALGARY (CP) - Oil and gas explorer Hawker Resources Inc. is again reshaping itself by buying privately held oil and natural gas company Iteration Energy Inc. with stock and selling off its Lavoy assets for $85 million in cash, the company said Tuesday.

Shares in Hawker surged after the announcement, which will change its management team and leave it with no debt and $25 million cash in hand, gaining $1.20 or more than 42 per cent, to $4 early Tuesday on the Toronto stock Exchange.

The move follows a review process at Hawker and will result in changes in management at the company, as Iteration's assets consisted of employment contracts with six executives and $2.2 million in cash.

"These transactions represent a successful conclusion to the recent strategic review process that Hawker has undertaken," said Don Nelson, Hawker's outgoing chief operating officer.

"With these transactions, Hawker has achieved the objective of positioning itself for future growth by adding a highly regarded management team, refocusing its existing operations, and ensuring that the company is capitalized so as to be able to move forward aggressively."

The company - converted from the defunct Synsorb Biotech by former PanCanadian Energy boss David Tuer - had been looking for a buyer for several months.

One of the Iteration executives, Brian Illing, a former vice-president at Canadian Natural Resources Ltd., will take over as president and CEO of Hawker. Tuer and two other senior executives have resigned.

The Calgary-based company said following closure of the deals it plans to change its name to Iteration Energy Inc. if shareholders give their approval at its next general meeting.

Hawker said it has purchased all of the issued and outstanding shares of Iteration in exchange for 5.75 million shares of Hawker and five million performance warrants with a 42-month term and an exercise price of $2.90 per share. The warrants are exercisable only if Hawker's share price trades above $4.50 for more than 45 consecutive days within the next 3 1/2 years.

The sale of its Lavoy, Alta., assets was made to two unrelated third parties, the company said.

Hawker said the transactions will eliminate current net debt of $58.5 million and leave it with $25 million in cash.

Hawker (TSX:HKR - news) is a Calgary-based company exploring for and developing oil and natural gas reserves in Western Canada.

http://news.yahoo.com/news?tmpl=story&u=/cpress/20050322/ca_pr_on_bu/hawker_resources_1

Amaunet

03/22/05 10:32 AM

Post #189

Hawker Resources Inc. announces corporate transactions and new senior management
Tuesday March 22, 8:02 am ET

CALGARY, March 22 /CNW/ - Hawker Resources Inc. ("Hawker", or the "Company") (HKR:TSX) announced today that it has concluded its strategic review process and that it has entered into two transactions which it believes provide the company with a strong foundation for future growth. Subsequent to the completion of these two transactions, Hawker will have:

- a new and experienced management team in place;
- strategic, exploration-focused property holdings with associated
undeveloped lands;
- a balance sheet with no debt;
- a cash position of approximately $25.0 million to fund future growth;
- current working interest production of approximately 3,200 BOE/d
(91% natural gas);
- tax pools of approximately $96.0 million; and
- basic shares outstanding of approximately 48.8 million.

The two transactions are Hawker's acquisition of Iteration Energy Inc. ("Iteration"), a privately held oil and natural gas company, which provides Hawker with a new, highly experienced senior management team; and Hawker's divestiture of its non-operated Lavoy area assets for cash consideration of $85.0 million to two unrelated third parties. The acquisition of Iteration has been completed, and the sale of the Lavoy area assets is expected to close on March 24, 2005.
"These transactions represent a successful conclusion to the recent strategic review process that Hawker has undertaken," said Don Nelson, Hawker's outgoing Senior Vice President and Chief Operating Officer. "With these transactions, Hawker has achieved the objective of positioning itself for future growth by adding a highly regarded management team, refocusing its existing operations, and ensuring that the Company is capitalized so as to be able to move forward aggressively."

New Management Team

Hawker's new management team consists of a proven group of experienced professionals with an outstanding record of value creation and growth in the Western Canadian Sedimentary Basin ("WCSB").

Mr. Brian Illing, the new President and CEO of Hawker, has 28 years of experience as a geologist, manager and executive in the oil industry. He was Executive Vice President at Canadian Natural Resources Ltd. ("CNRL"), and led its exploration department from 1993 to late 2003. He was the hands-on technical leader during this time and significantly contributed to the growth of CNRL from approximately 35,000 BOE/d to over 450,000 BOE/d. Mr. Illing was CNRL's prime technical reviewer and decision-maker for growth projects, and oversaw the drilling of more than 6,000 wells throughout the WCSB, with a success rate greater than 90%. Mr. Illing completed his B.Sc. (Geology) and M.Sc. (Geophysics) degrees in England at Durham University and Birmingham University, respectively.

Mr. Kevin Stromquist, the new Vice President Exploration West of Hawker, has 22 years of oil and gas experience and was promoted to lead the exploration department of CNRL in 2003. As Senior Vice President of Exploration, Mr. Stromquist led the drilling of more than 1,200 wells in western Canada, together with the evaluation of numerous acquisitions. Prior to that, Mr. Stromquist was CNRL's Exploration Manager for Northeast British Columbia and Northwest Alberta, as well as the prime technical contact for CNRL's International Division. Mr. Stromquist completed his B.Sc. (Earth Sciences) at the University of Waterloo.

Mr. Mark Ariss, the new Vice President Exploration East of Hawker, has 23 years of oil and gas experience. Mr. Ariss spent the past 12 years at CNRL, primarily as an Exploration Manager, where he provided technical and strategic review for over 1,250 wells in the Northwest Alberta and North Central Alberta Districts. Prior to 1998, Mr. Ariss also drilled 450 vertical, slant and horizontal wells in Eastern/Central Alberta as an Area/District Geologist. Mr. Ariss completed his B.Sc. (Honours Geology) at the University of Western Ontario.

Ms. Jane Mactaggart, the new Vice President Exploitation of Hawker, has 18 years of oil and gas experience and spent the last 6 years at CNRL. In her most recent role as Exploitation Manager, she led the asset exploitation and property acquisitions on a production base of 200 mmcf/d for CNRL's North Central Alberta group. Ms. Mactaggart completed her B.Sc. (Honours Physics) at the University of Edinburgh, Scotland.

Ms. Carmen McKay-Illing, the new Vice President Of Corporate Affairs of Hawker, has 15 years of experience, with the most recent 13 years spent at CNRL. In those years, Ms. McKay-Illing held positions in the Exploration and Operations Planning departments. Ms. McKay-Illing has a background in surface and mineral land, and extensive experience with data and systems management.

Mr. Ian Noble, the new Chief Geophysicist of Hawker, has 21 years of WCSB experience. He spent the last 12 years at CNRL and generated several hundred drilling locations ranging from heavy oil in eastern Alberta to Deep Basin tests in western Alberta. Mr. Noble completed his B.Sc. (Mathematics) and his M. Sc. (Geophysics) at the University of Manitoba.

Acquisition Of Iteration Energy Inc.

Pursuant to a share purchase agreement dated March 20, 2005, Hawker has purchased all of the issued and outstanding shares of Iteration in exchange for the issuance of 5,750,000 shares of Hawker and 5.0 million performance warrants. The 5,750,000 shares of Hawker to be issued are subject to an escrow agreement with Hawker and will release as to a third of the issued shares on each of March 20, 2006, 2007 and 2008, respectively. The performance warrants will have a term of 42 months, an exercise price of $2.90 per share, and are exercisable only if Hawker's share price trades above $4.50 per share for a period of more than 45 consecutive calendar days within the next three and one half years.

At the time of the acquisition of Iteration, the assets of Iteration consisted principally of employment contracts with the above named six individuals, and approximately $2.2 million in cash.

Mr. Illing is being appointed to the board of directors of Hawker effective immediately. At least one further nominee of Iteration will be appointed to the board of directors of Hawker at a later date.

Subject to shareholder approval, the name of Hawker will be changed to Iteration Energy Inc. at the next annual general meeting of the Company.

Divestiture Of Lavoy Area Assets

Pursuant to two asset sale agreements dated March 21, 2005, Hawker has agreed to sell its Lavoy area assets to two unrelated third parties for cash consideration totalling $85.0 million, with an effective dates of January 1, 2005. The net proceeds from the asset sales will be adjusted for operating results and capital expenditures between the effective dates and the expected closing dates of March 24, 2005. Hawker does not expect the asset sales to result in income that is taxable on a current basis.

Refocused Operations

Subsequent to the divestiture of the Lavoy area assets, Hawker will have the following attributes:

- current working interest production of approximately 3,200 BOE/d
(91% natural gas);
- average operatorship of approximately 87% of total production;
- proved reserves of approximately 3.8 MMBOE, and proved plus probable
reserves of approximately 5.7 MMBOE(1);
- proved reserves values of $67.6 million, and proved plus probable
reserves values of $92.2 million(2); and
- undeveloped land holdings of approximately 69,500 net acres.

(1) Based on Hawker's December 31, 2004 reserves evaluation report
completed by McDaniels & Associates Consultants Ltd.
(the "McDaniels Report"), including both working interest and
royalty interest volumes.
(2) Based on the before tax present values of cash flows from the
McDaniels Report, using a 10% discount rate.

Hawker will take a measured approach at all of its properties to increase value through high quality exploration and development work, coupled with strategic acquisitions and divestments. The company will also use its existing properties and cash flow as a platform for growth in other areas of the WCSB.
At North Boundary Lake, Hawker operates all facilities and has current working interest production of approximately 2,050 BOE/d. Hawker's undeveloped lands of 25,600 net acres in the area have considerable multi-zone potential. A detailed exploration and exploitation review will be completed prior to the next winter drilling season.

At Cold Lake, Hawker operates its production and has current working interest production of approximately 450 BOE/d. Cold Lake is a low cost development and exploitation area. Hawker expects to have ongoing activity in this area in 2005.

At Wild River, where Hawker is a working interest partner with Fairborne Energy Ltd., current working interest production is approximately 350 BOE/d. A second well targeting the Nisku formation has recently been spudded in the area.

Hawker's other areas, including: Valhalla; Manitou Lake; Granlea; Chigwell; and Gold Creek, currently have approximate aggregate working interest production of 350 BOE/d.

Hawker plans to release its 2004 annual results by Thursday, March 24, 2005.

Pro Forma Capitalization

Hawker currently has net debt of approximately $58.5 million. Subsequent to the acquisition of Iteration, the divestiture of Lavoy, and all transaction costs, Hawker will have approximately $25.0 million in cash, no debt, and approximately 48.8 million shares outstanding on a basic basis. Potentially dilutive instruments will consist of: (i) Hawker's 673,867 currently outstanding stock options, with a weighted average exercise price of $4.94 per share; (ii) approximately 4.8 million additional stock options being issued to incoming management and employees (of which approximately 2.3 million options are being issued pursuant to the Company's existing stock option plan and of which approximately 2.5 million options are subject to shareholder approval); and (iii) the performance warrants being issued in conjunction with the acquisition of Iteration.

Resignations Of Current Officers

In conjunction with the transactions, Hawker has accepted the resignation of President and CEO, David A. Tuer, who has served as a director and President since the inception of the Company. The Company also wishes to announce that, as planned at the time of their respective appointments on November 25, 2004, Donald J. Nelson, Senior Vice President and Chief Operating Officer, and David G. Scobie, Senior Vice President and Chief Financial Officer, have resigned. Hawker thanks Mr. Tuer for his service, and Mr. Nelson and Mr. Scobie for their considerable assistance during the recent strategic review process.

Financial Advisors

Peters & Co. Limited acted as financial advisor to Hawker with respect to the transactions. Peters & Co. Limited has provided the Board of Directors of Hawker with a fairness opinion stating, subject to review of the final form of the documents giving effect to the transactions, that the transactions, including the acquisition of Iteration and related management reorganization, are fair to the shareholders of Hawker.

Conference Call

A conference call to introduce the new management team and discuss Hawker's refocused operations will be held on Tuesday, March 22, 2005 at 9:30 a.m. Mountain Standard Time (11:00 a.m. Eastern Standard Time). To participate, please call 1-403-232-6311 from Calgary, 1-416-883-0139 from Toronto, or 1-888-458-1598 from other locations, and enter the reservation number 74998 followed by the number sign. The conference call will also be recorded and available for review until midnight on Tuesday, March 29, 2005 by calling 1-403-232-0933 from Calgary, or 1-877-653-0545 from other locations, and entering the reservation number 272238 followed by the number sign.

Forward Looking Statements

Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

Hawker Resources Ltd.

Hawker (www.hawkerinc.com) is an Alberta-based corporation engaged in the business of exploring for and developing oil and natural gas reserves in western Canada and acquiring natural resource properties. Hawker's common shares are listed on the Toronto Stock Exchange under the symbol "HKR".

%SEDAR: 00002576E

http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256

For further information

Please Contact: Hawker Resources Ltd., Mr. Brian Illing, President & CEO, Tel: (403) 290-4867, Fax: (403) 290-4875

Source: Hawker Resources Inc.

http://biz.yahoo.com/cnw/050322/hawker_new_senior_mgt_1.html

Amaunet

03/10/05 12:03 PM

Post #188

Re: #187: @Amaunet - Alberta Land Sale Results February 9, 2005

Alberta Land Sale Results March 9, 2005

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0237 45-11W4 256.00 Hawker Resources Inc. 50.00% $15,326.72 $59.87
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0254 51-16W4 256.00 Hawker Resources Inc. 50.00% $20,961.28 $81.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0265 56-17W4 256.00 Hawker Resources Inc. 50.00% $104,419.84 $407.89
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0266 56-17W4 256.00 Hawker Resources Inc. 50.00% $104,419.84 $407.89
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0275 58-16W4 256.00 Hawker Resources Inc. 50.00% $15,787.52 $61.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0276 58-16W4 256.00 Hawker Resources Inc. 50.00% $4,039.68 $15.78
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0277 58-16W4 256.00 Hawker Resources Inc. 50.00% $45,537.28 $177.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0280 59-5W4 128.00 Hawker Resources Inc. 50.00% $8,049.92 $62.89
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0282 59-5W4 128.00 Hawker Resources Inc. 50.00% $8,049.92 $62.89
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0287 60-11W4 256.00 Hawker Resources Inc. 50.00% $15,326.72 $59.87
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0288 60-11W4 256.00 Hawker Resources Inc. 50.00% $15,326.72 $59.87
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0289 60-11W4 256.00 Hawker Resources Inc. 50.00% $15,326.72 $59.87
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0290 60-11W4 256.00 Hawker Resources Inc. 50.00% $15,326.72 $59.87
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_568.asp

Amaunet

03/10/05 12:02 PM

Post #187

Re: #186: @Amaunet - Alberta Land Sale Results January 26, 2005

Alberta Land Sale Results February 9, 2005

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0102 46-15W4 256.00 Hawker Resources Inc. 50.00% $15,050.24 $58.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0104 46-15W4 256.00 Hawker Resources Inc. 50.00% $15,050.24 $58.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0105 46-15W4 256.00 Hawker Resources Inc. 50.00% $15,050.24 $58.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0116 47-15W4 256.00 Hawker Resources Inc. 50.00% $15,050.24 $58.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0118 47-15W4 256.00 Hawker Resources Inc. 50.00% $15,050.24 $58.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0145 58-16W4 64.00 Hawker Resources Inc. 50.00% $5,490.56 $85.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0147 58-16W4 64.00 Hawker Resources Inc. 50.00% $5,490.56 $85.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0148 58-16W4 64.00 Hawker Resources Inc. 50.00% $5,490.56 $85.79
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0155 60-5W4 256.00 Hawker Resources Inc. 50.00% $91,112.96 $355.91
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0172 63-3W4 256.00 Hawker Resources Inc. 50.00% $26,501.12 $103.52
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0176 63-5W4 256.00 Hawker Resources Inc. 50.00% $39,144.96 $152.91
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0178 64-5W4 256.00 Hawker Resources Inc. 50.00% $26,501.12 $103.52
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0179 64-5W4 256.00 Hawker Resources Inc. 50.00% $26,501.12 $103.52
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_565.asp

Amaunet

03/10/05 12:00 PM

Post #186

Re: #185: @Amaunet - Alberta Land Sale Results January 12, 2005

Alberta Land Sale Results January 26, 2005

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0639 58-20W4 256.00 Hawker Resources Inc. 50.00% $15,787.52 $61.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0642 58-20W4 256.00 Hawker Resources Inc. 50.00% $15,787.52 $61.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_563.asp

Amaunet

01/13/05 3:31 PM

Post #185

Re: #184: @Amaunet - Alberta Land Sale Results December 15, 2004

Alberta Land Sale Results January 12, 2005

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0010 8-8W4 256.00 947380 Alberta Ltd. 5.00% $45,007.36 $175.81
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0209 54-18W4 192.00 Hawker Resources Inc. 50.00% $31,848.96 $165.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0211 55-13W4 45.60 Hawker Resources Inc. 50.00% $2,679.91 $58.77
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0236 59-3W4 256.00 Hawker Resources Inc. 50.00% $25,999.36 $101.56
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0238 59-4W4 256.00 Hawker Resources Inc. 50.00% $40,133.12 $156.77
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0253 61-5W4 256.00 Hawker Resources Inc. 50.00% $77,498.88 $302.73
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0255 61-6W4 192.00 Hawker Resources Inc. 50.00% $19,499.52 $101.56
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0256 61-6W4 256.00 Hawker Resources Inc. 50.00% $15,045.12 $58.77
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0258 63-4W4 512.00 Hawker Resources Inc. 50.00% $154,997.76 $302.73
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0259 63-4W4 256.00 Hawker Resources Inc. 50.00% $25,999.36 $101.56
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_561.asp

Amaunet

12/21/04 9:55 AM

Post #184

Re: #181: @Amaunet - Alberta Land Sale Results December 1, 2004

Alberta Land Sale Results December 15, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0483 47-15W4 256.00 Hawker Resources Inc. 50.00% $15,275.52 $59.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0522 60-6W4 256.00 Hawker Resources Inc. 50.00% $15,275.52 $59.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_559.asp

Amaunet

12/17/04 9:52 AM

Post #183

Hawker Resources Inc. Announces Strategic Review Process Update
Friday December 17, 9:30 am ET

CALGARY, Dec. 17 /CNW/ - Hawker Resources Inc. ("Hawker" or the "Company") announced today further details concerning its strategic review process and revised guidance for production volumes at the end of December 31, 2004.

On November 8, 2004, the Company announced that its board of directors had authorized an examination of strategic and/or corporate restructuring alternatives that would be beneficial for Hawker's shareholders. At that time, Peters & Co. Limited was retained by Hawker as its financial advisor, to assist with the examination and analysis of alternatives. Such alternatives may include, but are not necessarily limited to: maintaining the status quo and continuing as an independent oil and gas company; merging with another company, or with a royalty trust; merging with another oil and gas company to form a new royalty trust; or the sale of the company for cash or shares/units.

Further to the above process, on November 25, 2004, the Company announced the appointment of Donald J. Nelson as Senior Vice President and Chief Operating Officer and David G. Scobie as Senior Vice President and Chief Financial Officer.

The review of alternatives has led to the decision to open a data room to allow interested parties, following the execution of a Confidentiality Agreement, access to data concerning the Company's operations. The data room will be opened at the offices of Peters & Co. Limited in the second week of January, 2005. Further information concerning this process may be obtained from Mr. Cameron E. Plewes of Peters & Co. Limited at (403) 261-2268.

The Company is continuing with its capital expenditure program. In particular, a drilling program is currently underway at Boundary Lake and ongoing operations are continuing in the Lavoy area. During the review process, planned capital expenditures will generally be maintained within the Company's available cash flow. The net production from Hawker's properties is currently approximately 5,800 BOE per day. The exit production rate for 2004 is not expected to differ significantly from this figure. This total is less than the 2004 exit guidance of 6,400 BOE per day noted in the Company's November 8, 2004 press release. These production volumes compare to average third quarter 2004 production of 5,367 BOE per day.

Any strategic or corporate restructuring alternatives identified will be subject to review and approval of the Company board of directors, and to shareholder and regulatory approval as required.

Hawker is an Alberta-based corporation engaged in the business of exploring for and developing oil and natural gas reserves in western Canada and acquiring natural resource properties. Hawker's common shares are listed on the Toronto Stock Exchange under the symbol "HKR".

ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

%SEDAR: 00002576E

http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256

For further information

Hawker Resources Inc. - Mr. Donald J. Nelson, Sr VP & Chief Operating Officer, Tel.: (403) 290-4867
Mr. David G. Scobie, Sr VP & Chief Financial Officer, (403) 290-4856

http://biz.yahoo.com/cnw/041217/hawker_review_update_1.html

Amaunet

12/13/04 12:48 PM

Post #182

Prepare yourself for merger mania

DEBORAH YEDLIN
Monday, December 6, 2004
A recent oil patch merger between two royalty trusts has prompted questions as to whether the much anticipated consolidation phase in the sector has begun or whether the $380-million deal involving Viking Energy Royalty Trust and Calpine Natural Gas Trust was driven by a unique set of circumstances.

Unfortunately, there is no short answer to this one.

Viking was one of those trusts that had been limping along for a while with the dubious distinction of being one of the worst performers among the trusts in the past five years. What it had going for it was its weighting toward oil and a long reserve life. Beyond that, said research analyst Gordon Tait of BMO Nesbitt Burns, it hadn't really distinguished itself.

Calpine on the other hand was levered to natural gas, had a short reserve life (a no-no in the royalty trust world because the company is in endless acquisition mode) and was in a bind because of the parent company's restructuring efforts in the United States.

One industry analyst called the two companies a unique pair of ugly ducklings. The deal between the two made sense because now the new trust has a balanced portfolio of oil and gas assets and a longer reserve life.

While some believe the Viking deal could be the tip of the iceberg in terms of setting off a merger frenzy among the trusts, much depends on what happens with commodity prices, interest rates and the Canadian dollar.

For the past three years, interest rates have been low, oil prices have hit levels no one dreamed possible in 1998, when they dipped close to $10 (U.S.) a barrel, and the dollar has been attractively valued from the standpoint that crude is priced in U.S. dollars.

This high-pressure system has brought lots of sunshine to the royalty trusts: providing them with lots of investors eager for robust cash distributions and market valuations that have seen the sector outperform the S&P/TSX for five years running. Mr. Tait points to Shiningbank Income Trust as an example. Shiningbank, which has a natural gas weighting, was a tough sell in early 1997, but for anyone who bought units back then at $10 (Canadian), they have received more than $15 in cash distributions and the units closed at $20.70 on Friday.

But some suggest the high-pressure system is weakening and it's possible we are on the verge of a perfect storm. Oil prices have recently become reacquainted with gravity -- although a $40 (U.S.) barrel is nothing to sneeze at -- interest rates are poised to rise and the soaring Canadian dollar is taking a bite out of revenues.

If this storm develops, be prepared to see a host of mergers.

Most of these will involve trusts that have been able to hide under the cover of low interest rates and high commodity prices that, according to Wilf Gobert of Peters & Co., can hide a multitude of sins. Commodity prices have been driving some very rich valuations but at some point the economics begin to break down because these days it's no secret that finding a barrel of oil is cheaper than buying it. Trusts that pay out less but spend more on developing production have a distinct advantage.

Think Peyto, Bonavista, Focus, Storm, Harvest and others.

Also having a leg up are the granddaddies of the sector that weathered the commodity price downturn in 1998 and 1999 and are still here -- Arc, Enerplus and Shiningbank, to name a few.

If the Viking/Calpine deal truly heralds a round of consolidation within the trusts, no one should worry that the number of cash distributing machines will dwindle to a handful. On the contrary.

There are plenty of junior oil and gas companies operating today whose mandate is to end up as a trust either by being sold, growing production and reserves to certain thresholds and converting or merging with another junior and then converting into a trust -- much like Midnight Oil and Gas buying the Canadian assets of Vintage Petroleum for $350-million (Canadian) in September and the October merger of Ketch Resources and Bear Creek Energy to form Ketch Resources Trust. If the current buzz is right, and Hawker Resources is next on the list to take that route, it's just a question of which company it chooses as its dance partner.

Bottom line?

A continued weakening in commodity prices along with the strong Canadian dollar could be enough to trigger a wave of merger activity as the trusts look to control the cost side of the business. After all, as the folks studying economics like to point out, if a company is a price taker -- as commodity-based entities are -- controlling costs is the way to maintain profitability or in this case, distributions. And that means having more production spread over the same cost structure. So, watch this week's OPEC meeting. It could be an indication of things to come.

dyedlin@globeandmail.ca

http://aolcanada.workopolis.com/servlet/Content/fasttrack/20041206/RYEDLIN06?section=Energy

Amaunet

12/02/04 1:39 PM

Post #181

Re: #179: @Amaunet - Alberta Land Sale Results November 17, 2004

Alberta Land Sale Results December 1, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0120 49-11W4 256.00 Hawker Resources Inc. 50.00% $32,706.56 $127.76
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0129 50-11W4 256.00 Hawker Resources Inc. 50.00% $15,086.08 $58.93
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0133 50-12W4 256.00 Hawker Resources Inc. 50.00% $15,086.08 $58.93
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0140 54-16W4 256.00 Hawker Resources Inc. 50.00% $53,168.64 $207.69
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_556.asp

Amaunet

11/25/04 7:45 PM

Post #180

Hawker undergoes management shakeup

2004-11-25 18:13 ET - News Release

Mr. David Tuer reports

HAWKER RESOURCES INC. ANNOUNCES MANAGEMENT APPOINTMENTS

Hawker Resources Inc., in the context of the examination of strategic and/or corporate restructuring alternatives that is presently under way, two of its senior officers have elected to retire from their positions with the company.

Terry C. Schmidtke is retiring as senior vice-president and chief operating officer and Barry R. Herring is retiring as senior vice-president and chief financial officer. The board of directors of Hawker has expressed its thanks to Mr. Schmidtke and Mr. Herring for their contributions.

Concurrently, the board of directors of Hawker is very pleased to announce the appointment of Donald J. Nelson as senior vice-president and chief operating officer and David G. Scobie as senior vice-president and chief financial officer of the company. Mr. Nelson and Mr. Scobie have had long and distinguished careers in the Canadian oil and gas industry.

Among other posts, including several corporate directorships, Mr. Nelson previously served as the president and chief executive officer of Summit Resources Limited, until its acquisition by Paramount Resources Ltd. in 2002. Mr. Scobie has also served in a number of executive and directorship capacities. He previously served, for many years, as senior vice-president and chief financial officer of Anderson Exploration Ltd., a well-known independent oil and gas company that was acquired by Devon Energy Corporation in 2001.

Hawker is continuing with a significant capital expenditure program for the balance of 2004 and has approved a plan for continued growth in 2005, as it continues with its review of strategic and/or corporate restructuring alternatives.

We seek Safe Harbour.
http://new.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=B-399673-C:HKR&symbol=HKR&news...

Amaunet

11/18/04 12:38 PM

Post #179

Re: #170: @Amaunet - Alberta Land Sale Results October 27, 2004

Alberta Land Sale Results November 17, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0152 49-5W4 256.00 Hawker Resources Inc. 50.00% $15,047.68 $58.78
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_552.asp

Amaunet

11/15/04 1:24 PM

Post #178

Hawker, Energy Growth Conference

2005 Budget First Look

Production average 6,400 - 7,000 boe/d

Cash flow $58.0 - $62.0 mm

Net income $5.0 - $10.0 mm

Capital expenditures $60.00 mm

Cash costs target <$9.00/ boe

Production replacement 150% - 200%

Tax pools sufficient to shelter income

http://www.hawkerinc.com/news/news/Hawker%2004PPT-Nov16.pdf

Amaunet

11/15/04 11:07 AM

Post #177

Re: #173: @gerem1 - Hey Amaunet

gerem, e-mail from Hawker

As I previously said this has to do with the OTC and proposed changes.

-Am

From: "Jane Johnson" <jane.johnson@hawkerinc.com> Save Address Reminder

To: <@att.net>
Subject: RE: Hawker Web Info Request
Date: Mon, 15 Nov 2004 14:36:12 +0000 [View Source]

The alternatives we may consider are not without precedent. Further,
most Canadian companies today have U.S. based shareholders which have
given rise to several structures to accommodate the different tax
structures. Should Hawker enter into a transaction that results in our
U.S. shareholders being ineligible, we will make every effort to see
them benefit from the transaction by taking advantage of these
precedents.
David Tuer

-----Original Message-----
From: att.net [mailto:@att.net]
Sent: Wednesday, November 10, 2004 10:38 AM
To: Jane Johnson
Subject: Hawker Web Info Request

Requested Information:

Name:
Address:

Company :
Email: @att.net
Phone:
Comments:Dear Mr Tuer,

Regarding the examination of "strategic and/or corporate restructuring
alternatives" - including a possible sale of the company, what
considerations will be given to your U.S. OTC shareholders who might not
be eligible for certain alternatives?

Thank you,

Amaunet

11/15/04 9:13 AM

Post #176

Re: #175: @gerem1 - Thanks for the reply. Yes do definitely agree

At this time I am not sure which avenue if any will be taken therefore I cannot speculate as to your concerns.

The only thing I can offer is that shareholder value will most probably be maximized.

Remember management has a large ownership stake. They, along with us, are the shareholders. When they say they want to maximize shareholder value they are also speaking of maximizing value for themselves. Fine by me, I am also a shareholder.

Might be bumpy during the transition but my feeling is that a stronger company will emerge.

Even if the Company chooses to remain in its present form 2005 promises to be more lucrative due in large part to delayed wells coming on stream.

Excerpt:
Moving from an enterprise (news - web sites) with 2,000 employees to one with 11 has tested Tuer's abilities, he said. "My slide rule's a little rusty. It still works but I'm testing the things I haven't done before. I can't write a check for everything that I want today -- I have to figure out how I'm going to pay for it."

The payoff is having a big ownership stake alongside other managers who got in on the ground floor, he said.
#msg-1452537

Wish I could be more help.

-Am

gerem1

11/14/04 3:03 PM

Post #175

Re: #174: @Amaunet - I sent an e-mail to Tuer a few

Thanks for the reply. Yes do definitely agree that the royalty trust stream is the way it looks. Now I would like to hear whether you feel that it would be a merger or whether they will get bought out. Also, if it was a merger would this affect the share price much and how much of a benefit do you feel this would bring to the company. I saw in the release that is said that they are looking to maximize the shareholders value. Do you feel that this would do just that?

Thanks

Amaunet

11/14/04 2:04 AM

Post #174

Re: #173: @gerem1 - Hey Amaunet

I sent an e-mail to Tuer a few days ago and have not yet received an answer. My point was more of a ‘don’t forget your OTC shareholders’ rather than what changes reorganization will bring given that Tuer cannot answer in private anything specific regarding the restructuring anyway.

I will post whatever I learn.

Hawker was conceived as a high growth company however it is difficult for conventional companies to compete with royalty trusts. Therefore I do not discount that a royalty trust is a possibility.

The following excerpt reiterates that it is unusual for conventional companies to compete or outbid the trusts. So David may go for a trust as it seems better suited to his growth agenda. I don’t really know.

Excerpt:

But there's more than StarPoint out there. Another company called Hawker Resources Inc. -- run by former PanCanadian Energy Corp. CEO David Tuer -- gained 33 per cent since announcing two weeks ago that it was the successful bidder in an auction process for privately held Pointwest Energy Inc.

What's interesting about this deal is that Hawker won the company at the end of the auction process, where the bidders likely included a number of royalty trusts. This means one of two things: Either Hawker overpaid for Pointwest, or the confluence of enthusiastic institutional investors and high commodity prices is allowing the conventional companies to outbid the royalty trusts.
#msg-2043238

Given the age of the company and that production is now exceeding 6,200 barrels of oil equivalent per day and expected to hit 6,400 by year-end is not bad however Hawker is starting to push the limit on debt.

Considering the production I am reluctant to sell Hawker at this point. In 2005 the Lavoy wells will start to come on stream that also could help.

Would like to see this settled soon.

-Am

gerem1

11/13/04 6:50 PM

Post #173

Hey Amaunet

What do you feel will come of the restructuring, any word on what is in the works??

Thanks

Amaunet

11/09/04 4:19 PM

Post #172

Re: #171: @Amaunet - Hawker Resources Announces Third Quarter 2004 Results and

Hawker Resources 'examining alternatives' after Q3 profit of $614,000

Mon Nov 8, 2:16 PM ET

CALGARY (CP) - Hawker Resources Inc. has disclosed it is examining "strategic and/or corporate restructuring alternatives" - including a possible sale of the company.

Hawker - converted from the former Synsorb Biotech by CEO David Tuer, previously boss of PanCanadian Energy - also said Monday it earned $614,000, one cent per share, in the third quarter. This was up from a year-earlier loss of $477,000, or two cents per share.

Quarterly revenue increased to $18.4 million from $8.8 million, as average production grew to 5,367 barrels of oil equivalent, 93 per cent natural gas, from year-earlier levels of 2,741 BOE per day.

Hawker said it drilled 26 wells during the period, with an 85 per cent success rate.

Tuer stated that since reducing its expectations for this year in July, the company has "focused on eliminating the operational issues identified in our revised guidance, through plant turnarounds and well workovers, and through increasing drilling activity on our operated properties."

He cited "encouraging" results, with production now exceeding 6,200 barrels of oil equivalent per day and expected to hit 6,400 by year-end.

Before the July revision, Hawker had predicted in March it would average 7,000 BOE per day for 2004.

Operating costs in the summer quarter reflected "the high level of field work carried out on our operated properties to eliminate operational constraints and to prepare facilities for growing production," Tuer said.

"Costs going forward will benefit from this work, as our production volumes increase during the fourth quarter and thereafter. "

Regarding the move to explore business options, Peters & Co. has been hired as financial adviser but "there can be no assurance that the board of directors will proceed with any transaction or alternative identified," the company (TSX:HKR - news) stated.

"The strategic alternatives to be considered may include, but will not necessarily be limited to: maintaining the status quo and continuing as an independent oil and gas company; merging with another company, or with a royalty trust; merging with another oil and gas company to form a new royalty trust; or the sale of the company for cash or shares."

http://news.yahoo.com/news?tmpl=story&u=/cpress/20041108/ca_pr_on_bu/hawker_resources_1

Amaunet

11/08/04 12:46 PM

Post #171

Hawker Resources Announces Third Quarter 2004 Results and Strategic Review Process
Monday November 8, 9:38 am ET

(All amounts are in Canadian dollars, unless stated otherwise)
CALGARY, Nov. 8 /CNW/ - Hawker Resources Inc. ("Hawker" or the "Company") announced today its financial and operating results for the three and nine months ended September 30, 2004.
Commenting on the Company's performance, David Tuer, Hawker's President and CEO, said "The third quarter was a transitional period for Hawker. The Company developed a modified capital spending strategy, after issuing revised guidance for production growth at the end of July. Hawker's activities since July have focused on eliminating the operational issues identified in our revised guidance, through plant turnarounds and well workovers, and through increasing drilling activity on our operated properties. The results have been encouraging with current production exceeding 6,200 BOE's per day, and our exit rate of production now expected to be in excess of 6,400 BOE's per day, reflecting a growth rate for the 2004 year of 28 percent. Production in the third quarter is consistent with our forecast and reflects the fact that significant temporary plant interruptions were required in order to complete capital projects that will facilitate future production growth".

"As we indicated in our July guidance, operating costs in the third quarter were expected to reflect the high level of field work carried out on our operated properties to eliminate operational constraints and to prepare facilities for growing production. Costs going forward will benefit from this work, as our production volumes increase during the fourth quarter and thereafter. Without the one-time costs incurred to work on wells and facilities, operating costs in this quarter were largely unchanged."

Hawker also advises that, as a result of management's regular review of business alternatives available to the company, as well as preliminary discussions with certain outside parties, Hawker's board of directors has authorized an examination of strategic and/or corporate restructuring alternatives that would be realizable and beneficial for Hawker shareholders.

No decision on any particular alternative has been reached at this time and there can be no assurance that the board of directors will proceed with any transaction or alternative identified. Peters & Co. Limited has been retained by Hawker as its financial advisor, to assist with the examination and analysis of alternatives.

The strategic alternatives to be considered may include, but will not necessarily be limited to: maintaining the status quo and continuing as an independent oil and gas company; merging with another company, or with a royalty trust; merging with another oil and gas company to form a new royalty trust; or the sale of the company for cash or shares.

Any strategic or corporate restructuring alternatives identified will be subject to review and approval of the Hawker board of directors and to shareholder and regulatory approvals, as required.

Quarter Highlights
------------------

- Production for the quarter averaged 5,367 Boe/d which represents a
decrease of 8% over the second quarter production.
- During the quarter Hawker was active on the land and seismic front
adding 13,692 of net undeveloped acres to our land inventory and
72 miles of 2D seismic. Net undeveloped land increased 4 percent to
230 thousand acres from 221 thousand acres.
- Cash flow totaled $9.1 million or $0.22 per share (basic and diluted).
- Operating costs averaged $6.44 per boe for the quarter. Costs are
higher but reflect planned workovers and plant turnarounds performed
at Chigwell, Manitou Lake, Cold Lake and Boundary Lake as well as
expenses billed on non-operated properties for which amounts had not
previously been accrued.
- Natural gas netbacks for the quarter were $3.46 per thousand cubic
feet based on an average realized natural gas price of $6.29 per
thousand cubic feet.

MANAGEMENT'S DISCUSSION AND ANALYSIS
November 8, 2004

The following is Management's Discussion and Analysis (MD&A) of Hawker Resources Inc. operating and financial results for the quarter ended September 30, 2004 as well as information and estimates concerning the Company's future outlook based on currently available information. This discussion should be read in conjunction with Hawker's unaudited consolidated financial statements for the three and nine months ended September 30, 2004 and the audited financial statements for the year ended December 31, 2003, together with accompanying notes. Readers should also refer to Hawker's 2003 Annual Information Form and Management's Discussion and Analysis dated August 4, 2004 for the quarter ended June 30, 2004. All financial information is reported in Canadian dollars and in accordance with Canadian generally accepted accounting principles (GAAP) unless noted otherwise.
Additional information about Hawker Resources Inc. filed with Canadian securities commissions, including periodic quarterly and annual reports and the Annual Information Form (AIF), is available on-line at www.sedar.com.

At the Annual and Special Meeting of SYNSORB Biotech Inc. ("SYNSORB") shareholders held April 3, 2003, shareholders approved the planned conversion of the company into an oil and gas enterprise and changed the company's name to Hawker Resources Inc. ("Hawker" or "the Company"). Prior to 2002, SYNSORB conducted pharmaceutical drug research and development. On December 10, 2001 SYNSORB terminated its drug development activities. On June 30, 2003, the conversion of the Company to an oil and gas enterprise was completed when Hawker acquired natural gas properties located in the Lavoy and Cold Lake areas. Accordingly, Hawker's operating results for the first nine months of 2003 reflect only three months of oil and gas operations and include the costs of converting Hawker into an oil and gas enterprise. On December 30, 2003, Hawker acquired all of the shares of Pointwest Energy Inc. ("Pointwest"), a privately held oil and gas company. On March 17, 2004 the Company acquired all of the shares of Zorin Exploration Ltd. ("Zorin"), a public oil and gas company.

Financial and Operating Highlights:

-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------------------------------------
($ Cdn thousands,
except as noted) 2004 2003 2004 2003
-------------------------------------------------------------------------
Financial
Production revenue 18,434 8,786 57,737 8,786
Per Share(1) ($) 0.44 0.34 1.40 0.63
Cash flow(2) 9,110 3,976 29,642 2,951
Per Share(1) ($) 0.22 0.15 0.72 0.21
Net earnings (loss) 614 (477) 1,467 (1,295)
Per Share(1) ($) 0.01 (0.02) 0.04 (0.09)
Total assets 198,357 81,681
Bank debt outstanding 51,173 23,119
Capital expenditures:
Exploration, development
and other 12,093 5,416 38,473 5,891
Acquisitions - 2,587 12,709 71,630
-------------------------------------------------------------------------
Shares outstanding (thousands)
End of period 43,072 25,772
Weighted average - basic
and diluted 42,270 25,772 41,122 13,840
November 3, 2004 43,072
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------------------------------------
($ Cdn thousands,
except as noted) 2004 2003 2004 2003
-------------------------------------------------------------------------
Operating
Daily average production
Natural gas (mcf/d) 30,136 16,444 30,815 5,542
Crude oil and natural gas
liquids (bbls/d) 344 - 420 -
Total (boe/d) 5,367 2,741 5,556 924

Average prices
Natural gas ($/mcf) 6.29 5.81 6.47 5.81
Crude oil and natural gas
liquids ($/bbl) 49.93 - 40.85 -
-------------------------------------------------------------------------
Land
Undeveloped land holdings
(thousands of net acres) 230 150
-------------------------------------------------------------------------
Drilling
Wells drilled (gross)
Gas 19 15 47 15
Oil 3 - 6 -
Service - - - -
Dry 4 2 7 2
Total 26 17 60 17
Success rate (%) 85 88 88 88
-------------------------------------------------------------------------

Notes:

(1) Based on weighted average diluted common and Class A common shares
outstanding for the period.
(2) Management uses cash flow and cash flow per share (before changes in
non-cash working capital) to analyze operating performance and
leverage. Cash flow and cash flow per share as presented do not have
any standardized meaning prescribed by Canadian GAAP and therefore
they may not be comparable with the calculation of similar measures
for other entities. Cash flow as presented is not intended to
represent operating cash flow or operating profits for the period nor
should it be viewed as an alternative to cash flow from operating
activities, net earnings or other measures of financial performance
calculated in accordance with Canadian GAAP. All references to cash
flow and cash flow per share throughout this report are based on cash
flow from operating activities before changes in non-cash working
capital.

Quarterly Financial Data

As discussed above, the Company commenced operations as an oil and gas
enterprise on July 1, 2003 and, accordingly, only the five most recently
completed quarters show the results of its oil and gas operations. During
2001, the Company conducted pharmaceutical drug research and development. On
December 10, 2001, the Company terminated its drug development activities and,
as a result, the activity of the Company during 2002 was concentrated on the
winding down of its biotech operations and the seeking of strategic
alternatives to maximize shareholder value. During the first half of 2003, the
focus was on restructuring and repositioning the Company as an oil and gas
enterprise. Accordingly, the quarterly financial information presented in the
following table is not directly comparable.

Quarterly Financial Data

($ thousands except per share data)
-------------------------------------------------------------------------
2004 2003 2002
---------------------- ----------------------------- --------
Quarter
ended Sept 30 June 30 Mar 31 Dec 31 Sept 30 June 30 Mar 31 Dec 31
---------------------------------- ----------------------------- --------
Revenues
before
royalties 18,492 21,471 18,985 8,911 8,825 33 378 1
Net earnings
(loss) 614 595 258 3,609 (477) (707) (111) (1,241)
Net earnings
(loss) per
common share
- basic and
diluted 0.01 0.01 0.01 0.13 (0.02) (0.07) (0.02) (0.25)
-------------------------------------------------------------------------

As previously mentioned, the operating results for the first nine months
of 2004 are not directly comparable to the first nine months of 2003 during
which time the Company had only three months of oil and gas operations.

Production

-------------------------------------------------------------------------
Daily Production Three months ended Nine months ended
------------------------------------- -------------------
Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Natural gas
(mcf/d) 30,136 31,477 30,838 16,444 30,815 5,542
Crude oil and
natural gas
liquids (bbls/d) 344 593 325 - 420 -
Total (boe/d) 5,367 5,839 5,464 2,741 5,556 924
-------------------------------------------------------------------------

Average daily production for the third quarter of 2004 increased 96% to
5,367 boe/d compared to 2,741 boe/d for the third quarter of 2003. Average
daily production for the first nine months of 2004 increased 501% to
5,556 boe/d compared to 924 boe/d for the nine month period ended
September 30, 2003. These production increases reflect the acquisition of
Pointwest on December 30, 2003 and the acquisition of Zorin on March 17, 2004.
The increase in average daily production for the nine months ended
September 30, 2004 as compared to the corresponding period in 2003 is also due
to the 2004 period having nine months of oil and gas operations versus three
months of oil and gas operations during the 2003 period.
Production for the third quarter of 2004 decreased from the previous two
quarters as a result of declines in base production as well as temporary
shut-ins at Boundary Lake to accommodate remedial operations to overcome
liquid loading in the recently drilled wells, compressor optimization work and
a shut-in of the Manitou Lake field in conjunction with a drilling program
completed in September.

Commodity Prices

Western Canada natural gas prices are referenced to the AECO Hub in
Alberta. AECO Hub prices were $6.21 per Mcf and $7.02 per Mcf for the third
and second quarter of 2004, respectively, a decrease of 12%.
The Alberta Gas Reference Price is the monthly weighted average of an
intra-Alberta consumers' price and an ex-Alberta border price, reduced by
allowances for transporting and marketing gas. The Alberta Gas Reference Price
is used to calculate Alberta Gas Crown Royalties. The Alberta Gas Reference
Price decreased 1% from $6.48 per Mcf in the second quarter of 2004 to
$6.42 per Mcf to date in the third quarter of 2004.
Hawker's average wellhead gas price increased by 8% to $6.29 per mcf for
the third quarter of 2004 from $5.81 per mcf for the third quarter of 2003.
For the nine month period ended September 30, 2004, the average natural gas
price received by the Company was $6.47 per mcf, an increase of 11% from the
$5.81 per mcf received during the nine month period ended September 30, 2003.
Posted prices for Edmonton light crude oil increased 11% to $56.39 per
barrel in the third quarter of 2004 from $50.92 per barrel in the second
quarter of 2004. Hawker did not have crude oil and NGL production during
either the three month or nine month periods ended September 30, 2003.

-------------------------------------------------------------------------
Realized Commodity Three months ended Nine months ended
Prices ------------------------------------- -------------------
Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Natural gas
($/mcf) 6.29 6.75 6.36 5.81 6.47 5.81
Crude oil and
natural gas
liquids ($/bbls) 49.93 37.21 37.78 - 40.85 -
Total ($/boe) 38.55 40.14 38.15 34.84 38.97 34.84
-------------------------------------------------------------------------

Revenue

Production revenue for the third quarter of 2004 was $18.4 million, an
increase of 110% from $8.8 million for the third quarter of 2003. The
production revenue growth was due to the increase in volumes produced during
the quarter resulting from the addition of the Pointwest and Zorin production
as well as an increase in the natural gas price realized. For the first nine
months of 2004, production revenue increased to $57.7 million from
$8.8 million for the nine month period ended September 30, 2003. The increase
in production revenue was a result of higher production volumes due to the
Pointwest and Zorin acquisitions and the 2004 period having nine months of oil
and gas operations versus three months of oil and gas operations during the
2003 period.

-------------------------------------------------------------------------
Production Revenue Three months ended Nine months ended
------------------------------------- -------------------
Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
($ thousands) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Production revenue,
before hedging 19,035 21,331 18,818 8,842 59,184 8,842
Hedging receipts
(payments) (601) (996) 150 (56) (1,447) (56)
-------------------------------------------------------------------------
Production
revenue 18,434 20,335 18,968 8,786 57,737 8,786
-------------------------------------------------------------------------

Hedging and Risk Management

The Company manages its exposure to fluctuations in commodity prices in
part through the use of derivative financial instruments. This is done to
ensure that the cash flow required to fund the 2004 capital program is
realized. Since the financial instruments used are not speculative in nature,
no recognition of mark-to-market gains or losses are included in income.

The Company has entered into the following financial derivatives:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) AECO Price (GJ/d) Term
-------------------------------------------------------------------------
Collar 5,000 $5.50 - $6.35 April 1, 2004 to
October 31, 2004
Collar 8,000 $5.50 - $6.40 April 1, 2004 to
October 31, 2004
Collar 5,000 $5.50 - $6.36 April 1, 2004 to
October 31, 2004
Fixed Price Swap 5,000 $5.745 August 1, 2004 to
October 31, 2004
Fixed Price Swap 5,000 $5.7725 April 1, 2004 to
October 31, 2004
-------------------------------------------------------------------------

The following aggregator plantgate sales contracts were outstanding as at
September 30, 2004:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) Contract Price (GJ/d) Expiry
-------------------------------------------------------------------------
Cogeneration Fuel
Supply 263 $1.959 - $2.217 October 31, 2008
Daily Declining
Profile 841(1) Netback(2) October 31, 2011
Reserve Base 260 Netback(2) Life of Reserves
Reserve Base 63 Netback(3) Life of Reserves
-------------------------------------------------------------------------

Notes:

(1) The Company's obligations under this contract will, on November 1 of
each succeeding year, decline to the following:

-------------------------------------------------------------------------
Date Obligation (GJ/d)
-------------------------------------------------------------------------
November 1, 2004 724
November 1, 2005 623
November 1, 2006 and thereafter 568
-------------------------------------------------------------------------

(2) TransCanada Pipelines Limited netback pricing.

(3) Progas Limited netback pricing.

Based on dealer quotes, had all the above contracts been closed on
September 30, 2004, a loss of $1.6 million would have been realized.

Royalties

Royalty expense for the third quarter of 2004 increased 109% to
$5.0 million from $2.4 million for the third quarter of 2003 due to higher
production volumes and commodity prices. For the nine months ended
September 30, 2004, royalty expense increased to $14.5 million from
$2.4 million for the nine month period ended September 30, 2003. This increase
was due to the higher production resulting from the Pointwest and Zorin
acquisitions and was also due to the 2004 period having nine months of oil and
gas operations versus three months of oil and gas operations during the 2003
period.

-------------------------------------------------------------------------
Royalties Three months ended Nine months ended
($ thousands ------------------------------------- -------------------
except Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
where noted) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Royalties 4,990 4,826 4,695 2,389 14,511 2,389
Per boe ($/boe) 10.11 9.08 9.44 9.47 9.53 9.47
Percentage of
revenue (%) 27 24 25 27 25 27
-------------------------------------------------------------------------

Production Expenses

Production expenses for the third quarter of 2004 increased to
$3.2 million from $0.8 million for the corresponding quarter of 2003,
reflecting higher production volumes and increased per unit costs. On a unit
of production basis, production expenses for the third quarter of 2004 were
$6.44 per boe as compared to $3.32 per boe for the third quarter of 2003. This
increase is due to workovers performed at Manitou Lake, Cold Lake, Boundary
Lake, and Chigwell as well as expenses billed late on non-operated properties
for which amounts had not previously been accrued.
Production expenses for the nine months ended September 30, 2004 were
$8.0 million as compared to $0.8 million for the nine months ended
September 30, 2003. This increase was due to the higher production resulting
from the Pointwest and Zorin acquisitions and was also due to the 2004 period
having nine months of oil and gas operations versus three months of oil and
gas operations during the 2003 period. On a unit of production basis,
production expenses increased to $5.25 per boe from $3.32 per boe due to the
addition of higher operating cost properties, a large number of well workover
costs, and various facility workovers.

-------------------------------------------------------------------------
Production Expenses Three months ended Nine months ended
($ thousands ------------------------------------- -------------------
except Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
where noted) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Field Operating
Costs 2,292 2,358 1,899 823 6,839 823
Prior Period
Costs 425 - 74 - 209 -
Workover Costs 263 95 84 15 442 15
Allocated General
and
Administrative
Expenses 202 174 122 - 498 -
-------------------------------------------------------------------------
Total Production
Expenses 3,182 2,627 2,179 838 7,988 838
-------------------------------------------------------------------------

-------------------------------------------------------------------------
Production Expenses Three months ended Nine months ended
per BOE ------------------------------------- -------------------
($ per Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
BOE) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Field Operating
Costs 4.64 4.43 3.81 3.26 4.49 3.26
Prior Period
Costs 0.86 - 0.15 - 0.14 -
Workover Costs 0.53 0.18 0.17 0.06 0.29 0.06
Allocated General
and
Administrative
Expenses 0.41 0.33 0.25 - 0.33 -
-------------------------------------------------------------------------
Total Production
Expenses 6.44 4.94 4.38 3.32 5.25 3.32
-------------------------------------------------------------------------

Operating Netback

Hawker's third quarter 2004 operating netback of $20.78 per boe reflected
the increase in realized natural gas prices offset by the increase in
royalties per boe and the increase in production expenses per boe, as
discussed previously.
The operating netback for the nine month period ended September 30, 2004
of $23.15 per boe represented a 5% increase from the $22.05 per boe achieved
for the corresponding period of 2003. The increased netback is due to the
increase in natural gas prices received by the Company offset by increased
royalty and production expenses on a unit of production basis.

-------------------------------------------------------------------------
Operating Netback Three months ended Nine months ended
------------------------------------- -------------------
Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
($/ BOE) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Production
Revenue 37.33 38.27 38.15 34.84 37.93 34.84
Royalties (10.11) (9.08) (9.44) (9.47) (9.53) (9.47)
Operating Costs (6.44) (4.94) (4.38) (3.32) (5.25) (3.32)
-------------------------------------------------------------------------
Operating Netback 20.78 24.25 24.33 22.05 23.15 22.05
-------------------------------------------------------------------------

General and Administrative Expense

General and administrative expense, net of overhead recoveries on
operated properties, increased to $1.1 million ($2.16 per boe) for the third
quarter of 2004 from $1.0 million ($4.07 per boe) in the third quarter of
2003. For the nine months ended September 30, 2004, general and administrative
expense increased 63% to $3.9 million from $2.4 million for the nine month
period ended September 30, 2003. This increase was attributable to the
addition of staff and consultants and increased administrative costs
associated with the Company being a fully operational oil and gas entity.
General and administrative costs totaling $0.5 million and $0.2 million
were capitalized for the three month periods ended September 30, 2004 and
2003, respectively. General and administrative costs totaling $1.3 million and
$0.2 million were capitalized for the nine month periods ended
September 30, 2004 and 2003, respectively.
The Company's stock option plan was amended effective April 1, 2004, as
approved by the Company's shareholders, to provide stock option holders the
choice upon exercise to receive a cash payment in exchange for surrendering
the option. The cash payment is equal to the appreciated value of the stock
option as determined based on the difference between the option's exercise
price and the Company's share price at the time of exercise. At
September 30, 2004, the Company has recorded a liability of $28,000 and
reduced stock based compensation expense by $169,000 during the quarter ended
September 30, 2004 based on the September 30, 2004 closing price of the
Company's shares.
As a result of the amendments to the stock option plan in the second
quarter, the Company recorded a liability of $197,000 and reduced contributed
surplus by the same amount based on the appreciated value of the outstanding
stock options as determined using the June 30, 2004 closing share price.
Stock based compensation expense or recovery in future periods is
dependent on changes in the Company's share price and the number of options
outstanding.

-------------------------------------------------------------------------
General and
Administrative
Expense Three months ended Nine months ended
($ thousands ------------------------------------- -------------------
except Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
where noted) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Gross General
& Administrative
Expense 1,884 2,432 2,135 1,265 6,451 2,640
Overhead
Recoveries (139) (234) (341) - (714) -
Allocation to
Production
Expense (202) (174) (122) - (498) -
Capitalized
Overhead (478) (476) (377) (240) (1,331) (240)
-------------------------------------------------------------------------
Net General
& Administrative
Expense 1,065 1,548 1,295 1,025 3,908 2,400
Per boe ($/boe) 2.16 2.91 2.60 4.07 2.57 9.52
-------------------------------------------------------------------------

Interest Expense

Interest expense on current and long-term debt for the third quarter of
2004 was $0.5 million compared to $0.2 million for the third quarter of 2003,
an increase of 126%. Interest expense on current and long-term debt for the
nine month period ended September 30, 2004 was $1.8 million compared to
$0.3 million for the corresponding period of 2003. These increases were due to
higher average debt levels during the first nine months of 2004 resulting from
the capital expenditures and acquisitions incurred by the Company.

-------------------------------------------------------------------------
Interest Expense Three months ended Nine months ended
($ thousands ------------------------------------- -------------------
except Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
where noted) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Interest Expense 539 581 646 238 1,766 267
Per boe ($/boe) 1.09 1.09 1.30 0.94 1.16 1.06
-------------------------------------------------------------------------

Depletion and Depreciation

The third quarter 2004 depletion and depreciation rate increased to
$20.74 per boe from $17.43 per boe for the third quarter of 2003. For the nine
month period ended September 30, 2004, the depletion and depreciation rate
increased to $20.25 per boe from $17.44 per boe for the nine month period
ended September 30, 2003. The depletion and depreciation rate increases were
primarily due to the acquisition of Pointwest and Zorin.
Depletion and depreciation expense increased 133% to $10.2 million for
the third quarter of 2004 from $4.4 million in the third quarter of 2003. For
the nine month period ended September 30, 2004, depletion and depreciation
expense increased 601% to $30.8 million from $4.4 million for the nine month
period ended September 30, 2003. The increase in the expense recorded for the
third quarter of 2004 and the nine months ended September 30, 2004 was due to
the increased depletion and depreciation rate combined with the 96% and 501%
increase in production for the third quarter of 2004 and the nine months ended
September 30, 2004, respectively, as compared to the corresponding periods of
2003.

-------------------------------------------------------------------------
Depletion and
Depreciation
Expense Three months ended Nine months ended
($ thousands ------------------------------------- -------------------
except Sept. 30, June 30, Mar. 31, Sept. 30, Sept. 30, Sept. 30,
where noted) 2004 2004 2004 2003 2004 2003
----------------------------------------------------- -------------------
Depletion and
Depreciation
Expense 10,243 10,921 9,661 4,395 30,825 4,398
Per boe ($/boe) 20.74 20.55 19.43 17.43 20.25 17.44
-------------------------------------------------------------------------

Taxes

At September 30, 2004, Hawker reassessed its unrecognized future income
tax assets. It was concluded it was more likely than not that the unrecognized
future income tax assets will be realized and, accordingly, a future income
tax recovery and future income tax asset were recorded. The future income tax
asset that was recorded was derived solely from the excess of resource tax
pools over the accounting tax basis of the capital assets of the Company.
The Company also has approximately $5,700,000 of unclaimed investment tax
credits available to reduce future years' income taxes payable.
A recovery of $388,000 was recorded in the third quarter of 2004 for
capital and other taxes as compared to an expense of $106,000 for the third
quarter of 2003. The recovery was due primarily to an adjustment to capital
taxes for fiscal 2003 as a result of actual tax filings.
For the nine month period ended September 30, 2004, the capital and other
tax expense of $167,000 is comprised of a large corporation tax accrual, the
2003 capital tax adjustment, Part XII.6 tax on the unexpended portion of the
December 2003 flow through share proceeds and an estimated Part XII.6 tax
re-assessment on a predecessor company tax filing.

Capital Expenditures

Exclusive of the Zorin transaction, the Company spent $38.2 million on
exploration and development activities in its core areas in the first nine
months of 2004. In addition, Zorin was acquired for $12.7 million in March.

-------------------------------------------------------------------------
Capital Expenditures Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
($ thousands) 2004 2003 2004 2003
------------------------------------------------- ---------------------
Exploration & development
expenditures 12,093 5,172 38,178 5,647
Acquisitions - 2,587 12,709 71,630
Other - 244 295 244
------------------------------------------------- ---------------------
Total 12,093 8,003 51,182 77,521
-------------------------------------------------------------------------

During the nine month period ended September 30, 2004, Hawker disposed of
a number of the minor properties acquired with Pointwest for gross proceeds of
$6.0 million.

Liquidity and Capital Resources

At September 30, 2004, Hawker had $59.7 million of net debt outstanding.
Net debt was comprised of $51.2 million of current and long-term bank debt,
equipment finance obligations of $0.3 million and a working capital deficiency
of $8.2 million. The net debt reflects the high level of capital spending
during the winter drilling season. The working capital deficiency will be
reduced mainly by future cash flows.
In October 2004, the Company's credit facility was amended to a
$55,000,000 extendible revolving term credit facility from a Canadian
chartered bank. This facility bears interest at rates varying from Canadian
prime rate or U.S. base rate of such bank to the Canadian prime rate or U.S.
base rate plus 75 basis points, payable monthly in arrears. The Company may
also borrow by way of bankers' acceptances, which are subject to a stamping
fee, or by way of LIBOR based loans which are subject to an interest rate
spread payable to the bank. The loan is a revolving facility until
May 31, 2005 with annual extension periods available at the bank's discretion.
After the revolving phase, the facility becomes a term facility payable in
full one year from the date the revolving facility is terminated. This
facility is subject to semi-annual review and re-determination of the
Company's borrowing base by the bank, with the next review to occur by
March 31, 2005.
The Company has $1.2 million outstanding under a demand non-revolving
facility with a Canadian chartered bank. The loan is required to be repaid by
December 31, 2004. The facility bears interest at the bank's prime rate plus
1% per annum and is secured by a demand collateral mortgage in the amount of
$2.9 million over the manufacturing plant and lands held for sale by the
Company.
On August 6, 2004, the Company issued through a private placement,
2,050,000 common shares on a flow-through basis at a price of $5.15 per share.
The Company received gross proceeds of $10.6 million that will be used to
incur exploration expenditures for the continued exploration of Hawker's oil
and natural gas properties prior to December 31, 2005. The proceeds have been
used to temporarily reduce indebtedness until required for the foregoing
purposes.

Shareholders' Equity

Hawker's total capitalization was $210.9 million at September 30, 2004
representing the market value of the shares of $159.4 million and total debt
of $51.5 million. During the first nine months of 2004, the market price of
the shares ranged from $3.35 to $5.90 with an average daily trading volume of
150,492 shares.
On September 30, 2004 there were 43,071,681 common shares outstanding. At
the Company's Annual General Meeting held on April 28, 2004, the shareholders
agreed to reclassify the Class A common shares to common shares on a 1 to 1
basis in order to simplify our corporate structure. On March 17, 2004, the
Company issued 1,150,044 common shares to former Zorin shareholders under a
take over circular dated January 18, 2004 for consideration of $6.3 million.
On August 6, 2004, the Company issued through a private placement,
2,050,000 common shares on a flow-through basis at a price of $5.15 per share
for gross proceeds of $10.6 million.

Related Party Transactions

A director of the Company is a partner of a law firm that was paid
$254,000 for legal services for the nine month period ended
September 30, 2004. The fees charged were based on standard rates and time
spent on Company matters.
A director of the Company is an executive officer of an oil and gas
supplies and services company that was paid $203,000 for supplies and services
received. Gross obligations under equipment financing arrangements entered
into with this company totaled $612,000. The services and supplies were
invoiced to Hawker at standard company prices.

Summary of Quarterly Results

The following table presents Hawker's results by quarter since commencing
oil and gas operations on July 1, 2003.

-------------------------------------------------------------------------
Summary of Quarterly Results 2004 2003
----------------------- ---------------
$000's except per share amounts Q3 Q2 Q1 Q4 Q3
--------------------------------------------------------- ---------------
Production revenue 18,434 20,335 18,968 8,796 8,786
Net earnings (loss) (1,202) 595 258 3,609 (477)
Per share basic (0.03) 0.01 0.01 0.13 (0.02)
Per share diluted (0.03) 0.01 0.01 0.13 (0.02)
-------------------------------------------------------------------------

Advisory - Forward-Looking Information

This MD&A contains forward-looking information with respect to Hawker
Resources Inc.

The use of any of the words "anticipate," "continue," "estimate,"
"expect," "may," "will," "project," "should," "believe," "outlook," and
similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from
those anticipated in our forward-looking statements. We believe the
expectations reflected in these forward-looking statements are reasonable.
However, we cannot assure the reader that these expectations will prove to be
correct. The reader should not unduly rely on forward-looking statements
included in this report. These statements speak only as of the date of the
MD&A, being August 4, 2004.

In particular, this MD&A contains forward-looking statements pertaining
to the following:

- The quantity and recoverability of our reserves;
- The timing and amount of future production;
- Prices for natural gas produced;
- Operating and other costs;
- Business strategies and plans of Management;
- Supply and demand of natural gas;
- Expectations regarding our ability to raise capital and to add to our
reserves through acquisitions as well as exploration and development;
- The focus of capital expenditures on development activity rather than
exploration;
- The sale, farming in, farming out or development of certain
exploration properties using third party resources;
- The use of development activity and acquisitions to replace and add to
reserves;
- The impact of changes in natural gas prices on cash flow after
hedging;
- Drilling plans;
- The existence, operations and strategy of the commodity price risk
management program;
- The approximate and maximum amount of forward sales and hedging to be
employed;
- The Company's acquisition strategy, and the criteria to be considered
and the benefits to be derived;
- The impact of Canadian federal and provincial governmental regulation
on the Company relative to other issuers of similar size;
- Our treatment under governmental regulatory regimes;
- The goal to sustain or grow production and reserves through prudent
management and acquisition;
- The emergence of accretive growth opportunities; and
- The Company's ability to benefit from the combination of growth
opportunities and the means to grow through the capital markets.

Our actual results could differ materially from those anticipated in our
forward-looking statements as a result of the risk factors set forth below and
elsewhere in this MD&A which include but are not limited to:

- Volatility in market prices for natural gas;
- Risks inherent in our operations;
- Uncertainties associated with estimating reserves;
- Competition for, among other things: capital, acquisitions of
reserves, undeveloped lands and skilled personnel;
- Incorrect assessments of the value of acquisitions;
- Geological, technical, drilling and process problems;
- General economic conditions including fluctuations in the price of
natural gas;
- Royalties payable in respect of Hawker's production;
- Governmental regulation of the oil and gas industry, including
environmental regulation;
- Fluctuation in foreign exchange or interest rates;
- Unanticipated operational events that can reduce production or cause
production to be shut-in or delayed;
- Stock market volatility and market valuations; and
- The need to obtain required approvals from regulatory authorities.

The above list of risk factors should not be construed as exhaustive.

Hawker Resources Inc.

Consolidated Balance Sheets (Unaudited)
-------------------------------------------------------------------------
September 30, December 31,
(in thousands of dollars) 2004 2003
-------------------------------------------------------------------------

ASSETS

Current
Accounts receivable $ 9,821 $ 11,577
Investments - 2,500
Prepaids and other current assets 2,301 1,845
-------------------------------------------------------------------------
12,122 15,922

Assets held for sale 2,190 2,190

Future income taxes (Note 12) 1,816 -

Capital assets (Notes 2, 3 and 11) 182,229 166,990

-------------------------------------------------------------------------
$ 198,357 $ 185,102
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current
Accounts payable and accrued liabilities $ 20,329 $ 23,750
Current portion of equipment finance
obligations (Note 4) 118 -
Bank loan (Note 3) 1,243 10,000
-------------------------------------------------------------------------
21,690 33,750

Bank loan (Note 3) 49,930 44,149

Equipment finance obligations (Note 4) 245 -

Leasehold inducements 679 247

Asset retirement obligations (Note 5) 4,767 3,499

Shareholders' Equity
Share capital (Note 6) 126,448 110,204
Contributed surplus (Note 6) 10 132
Deficit (5,412) (6,879)
-------------------------------------------------------------------------
121,046 103,457
-------------------------------------------------------------------------
$ 198,357 $ 185,102
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.

Consolidated Statements of Earnings (Loss) and Deficit (Unaudited)
-------------------------------------------------------------------------

Three Months Ended Nine Months Ended
(in thousands of dollars, September 30, September 30,
except per share amounts) 2004 2003 2004 2003
-------------------------------------------------------------------------

Revenue
Production revenue $ 18,434 $ 8,786 $ 57,737 $ 8,786
Royalties, net of Alberta
Royalty Tax Credit (4,990) (2,389) (14,511) (2,389)
-------------------------------------------------------------------------
13,444 6,397 43,226 6,397
Interest income 1 39 21 68
Gain on sale of
investments - - 1,133 -
Other 57 - 57 382
-------------------------------------------------------------------------
13,502 6,436 44,437 6,847
-------------------------------------------------------------------------
Expenses
Production 3,182 838 7,988 838
General and administrative
(Note 7) 1,065 1,025 3,908 2,400
Interest on current debt 27 - 248 -
Interest on long-term debt 512 238 1,518 267
Depletion and depreciation 10,243 4,395 30,825 4,398
-------------------------------------------------------------------------
15,029 6,496 44,487 7,903
-------------------------------------------------------------------------
Loss before the following (1,527) (60) (50) (1,056)

Lease abandonment expense - (322) - (322)

Operating costs and
write-downs associated
with assets held for sale (63) 11 (132) (179)

Alberta Heritage Foundation
grant settlement - - - 368

-------------------------------------------------------------------------
Loss before taxes (1,590) (371) (182) (1,189)
-------------------------------------------------------------------------

Taxes

Future income tax recovery
(Note 12) (1,816) - (1,816) -

Capital and other taxes (388) 106 167 106
-------------------------------------------------------------------------
(2,204) 106 (1,649) 106
-------------------------------------------------------------------------

Net earnings (loss) 614 (477) 1,467 (1,295)

Deficit, beginning
of period (6,026) (10,011) (6,879) (9,193)
-------------------------------------------------------------------------

Deficit, end of period $ (5,412) $ (10,488) $ (5,412) $ (10,488)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Basic and diluted net
earnings (loss) per
common share (Note 6) $ 0.01 $ (0.02) $ 0.04 $ (0.09)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.

Consolidated Statements of Cash Flows (Unaudited)

-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands of dollars) 2004 2003 2004 2003
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net earnings (loss) $ 614 $ (477) $ 1,467 $ (1,295)
Add (deduct) non-cash items:
Depletion, depreciation
and asset write-downs 10,243 4,395 30,825 4,543
Accretion expense 69 - 224 -
Future income tax
recovery (1,816) - (1,816) -
Alberta Heritage
Foundation grant
settlement - - - (368)
Gain on sale of
investments - - (1,133) -
Stock-based compensation
(Note 7) - 58 75 71
-------------------------------------------------------------------------
9,110 3,976 29,642 2,951
Net change in non-cash
working capital (Note 10) (1,300) 2,502 (476) 2,708
-------------------------------------------------------------------------
7,810 6,478 29,166 5,659
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Proceeds from sale of
capital assets - 150 6,039 1,173
Cash consideration on
acquisition of oil and
gas properties (Note 2) - (2,587) (2,021) (71,630)
Additions to oil and
gas properties (12,093) (5,172) (38,178) (5,647)
Additions to other capital
assets - (244) (295) (244)
Proceeds on sale of investment - - 3,633 -
Leasehold inducements received 295 170 432 170
Net change in non-cash
working capital (Note 10) (1,796) (621) (2,108) 1,529
-------------------------------------------------------------------------
(13,594) (8,304) (32,498) (74,649)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Common shares issued on
exercise of options - - - 192
Common shares issued
for cash 10,558 - 10,558 45,047
Issue of debentures
and warrants - - - 3,645
Net change in bank loan (4,249) (1,225) (5,883) 23,119
Share issue costs (582) (14) (609) (3,302)
Net change in non-cash
working capital (Note 10) 57 (395) (734) -
-------------------------------------------------------------------------
5,784 (1,634) 3,332 68,701
-------------------------------------------------------------------------

Increase in cash - (3,460) - (289)

Cash, beginning of period - 3,460 - 289
-------------------------------------------------------------------------

Cash, end of period $ - $ - $ - $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Supplemental disclosure of cash flow information (Note 10)

See accompanying notes to the consolidated financial statements

Hawker Resources Inc.
Notes to Consolidated Financial Statements (Unaudited)
September 30, 2004 and 2003
(Tabular amounts in thousands of dollars, unless otherwise noted)

The interim consolidated financial statements of Hawker Resources Inc.
(the "Company" or "Hawker") have been prepared in accordance with
accounting principles generally accepted in Canada. The interim
consolidated financial statements contain disclosures which are
supplemental to the Company's annual financial statements. Certain
disclosures, which are normally required to be included in the notes to
the annual financial statements, have been condensed or omitted. The
interim consolidated financial statements should be read in conjunction
with the Company's audited financial statements and notes thereto for the
year ended December 31, 2003.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements have been prepared
following the same accounting policies and methods of computation used in
the preparation of the audited financial statements as at
December 31, 2003 except for the following:

Full Cost Accounting

Effective January 1, 2004, the Company has retroactively adopted the
Canadian Institute of Chartered Accountants Accounting Guideline 16 on
Full Cost Accounting for Oil and Gas companies. In applying the new full
cost guideline, the Company calculates its ceiling test by comparing the
carrying value of property and equipment to the sum of undiscounted cash
flows expected to result from the future production of proved reserves
and the sale of unproved properties. Cash flows are based on third party
quoted forward prices, adjusted for transportation and quality. Should
the ceiling test result in an excess of carrying value, the Company would
then measure the amount of impairment by comparing the carrying amounts
of property and equipment to an amount equal to the estimated net present
value of future cash flows from proved plus probable reserves and the
sale of unproved properties. A risk-free interest rate is used to arrive
at the net present value of the future cash flows. Any excess is recorded
as a permanent impairment.

There has been no impact on current or prior year financial statements as
a result of the adoption of this guideline.

Stock Based Compensation

The Company's stock option plan was amended effective April 1, 2004, as
approved by the Company's shareholders, to provide stock option holders
the choice upon exercise to receive a cash payment in exchange for
surrendering the option. The cash payment is equal to the appreciated
value of the stock option as determined based on the difference between
the option's exercise price and the Company's share price at the time of
exercise. At September 30, 2004, the Company has recorded a liability of
$28,000 and reduced stock based compensation expense by $169,000 during
the quarter ended September 30, 2004 based on the September 30, 2004
closing price of the Company's shares.

As a result of the amendments to the stock option plan in the second
quarter, the Company recorded a liability of $197,000 and reduced
contributed surplus by the same amount based on the appreciated value of
the outstanding stock options as determined using the June 30, 2004
closing share price.

Stock based compensation expense or recovery in future periods is
dependent on changes in the Company's share price and the number of
options outstanding.

Basis of Consolidation

These consolidated financial statements include the accounts of Hawker
and its wholly owned subsidiary, Mar Oil Company.

2. BUSINESS ACQUISITIONS AND DISPOSITIONS

Zorin Exploration Ltd. On March 17, 2004 the Company acquired all of the
shares of Zorin Exploration Ltd. ("Zorin"), a public oil and gas company,
and its wholly owned subsidiary, Mar Oil Company ("Mar"). The acquisition
was accounted for by the purchase method.

Allocation of purchase price:

Capital assets $ 12,709
Bank debt (2,908)
Asset retirement obligations (486)
Non-cash working capital (999)
-------------------------------------------------------------------------
Total purchase price $ 8,316
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Consideration was comprised of:
Issue of 1,150,044 common shares using an ascribed value
of $5.474 per share $ 6,295
Cash 2,021
-------------------------------------------------------------------------
Total consideration $ 8,316
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The value of the common shares issued for the acquisition of Zorin was
based on the average closing price of the Company's shares on the five
trading days preceding the announcement of the transaction.
On March 17, 2004, Zorin was dissolved into the Company. The results of
operations for Zorin and Mar have been included in the consolidated
financial statements since March 17, 2004.

3. BANK LOAN

In October 2004, the Company's credit facility was amended to a
$55,000,000 extendible revolving term credit facility from a Canadian
chartered bank. This facility bears interest at rates varying from
Canadian prime rate or U.S. base rate of such bank to the Canadian prime
rate or U.S. base rate plus 75 basis points, payable monthly in arrears.
The Company may also borrow by way of bankers' acceptances, which are
subject to a stamping fee, or by way of LIBOR based loans which are
subject to an interest rate spread payable to the bank. The loan is a
revolving facility until May 31, 2005 with annual extension periods
available at the bank's discretion. After the revolving phase, the
facility becomes a term facility payable in full one year from the date
the revolving facility is terminated. This facility is subject to
semi-annual review and re-determination of the Company's borrowing base
by the bank, with the next review to occur by March 31, 2005.

Collateral pledged for the facility consists of a first floating charge
demand debenture in the amount of $150 million over all of the property
of the Company.

The Company has $1,243,000 outstanding under a demand non-revolving
facility with a Canadian chartered bank. The loan is required to be
repaid by December 31, 2004. The facility bears interest at the bank's
prime rate plus 1% per annum and is secured by a demand collateral
mortgage in the amount of $2,900,000 over the manufacturing plant and
lands held for sale by the Company.

At September 30, 2004, irrevocable standby letters of credit which
guarantee certain natural gas transportation arrangements had been issued
for a total of $295,000.

4. EQUIPMENT FINANCE OBLIGATIONS

The Company entered into an equipment financing agreement with a supplier
of gas well monitoring equipment. Equipment purchased under the financing
agreement had a gross cost of $612,000 with $381,000 net to Hawker. The
financed amount bears interest at 8% per annum, compounded monthly, with
gross monthly payments of $19,000 required until July of 2007.

Net equipment finance obligations $ 381
Net principal portion of payments made (18)
-------------------------------------------------------------------------
Net equipment finance obligations, September 30, 2004 $ 363
-------------------------------------------------------------------------
-------------------------------------------------------------------------

5. ASSET RETIREMENT OBLIGATIONS

The total future asset retirement obligations were estimated by
management based on the Company's net working interest in all wells and
facilities, estimated costs to reclaim and abandon wells and facilities
and the estimated timing of the costs to be incurred in future periods.
The Company estimates the undiscounted cash flows related to asset
retirement obligations, adjusted for inflation, to be incurred over the
estimated reserve life of the underlying assets will total approximately
$6,922,000. The fair value at September 30, 2004 is $4,767,000 using a
discount rate of six percent and an inflation rate of two percent. As at
September 30, 2004, no funds have been set aside to settle this
obligation.

2004 2003
-------------------------------------------------------------------------
Balance, January 1 $ 3,499 $ -
Increase in liabilities 1,044 2,833
Accretion expense 224 -
-------------------------------------------------------------------------
Balance, September 30 $ 4,767 2,833
-------------------------------------------------------------------------
-------------------------------------------------------------------------

6. SHARE CAPITAL

(a) Common Shares Issued

Number of Shares Amount
-------------------------------------------------------------------------
Balance, December 31, 2003 35,997,200 $ 107,861
Issued for cash 2,050,000 10,558
Issued on acquisition of Zorin (Note 2) 1,150,044 6,295
Reclassification of Class A common shares 3,874,437 2,343
Share issue costs - (609)
-------------------------------------------------------------------------
Balance, September 30, 2004 43,071,681 $ 126,448
-------------------------------------------------------------------------
-------------------------------------------------------------------------

On August 6, 2004, the Company issued common shares on a flow-through
basis for gross proceeds of $10,558,000 to finance certain oil and gas
expenditures to be incurred in the last quarter of 2004 and in 2005. The
Company is required to renounce these expenditures to the purchasers of
these shares by February 28, 2005.

(b) Class A Common Shares Issued

Number of Shares Amount
-------------------------------------------------------------------------
Balance, December 31, 2003 3,874,437 $ 2,343
Reclassification to common shares (3,874,437) (2,343)
-------------------------------------------------------------------------
Balance, September 30, 2004 - $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

On April 28, 2004, the shareholders of Hawker approved the
reclassification of the Class A common shares into common shares.

(c) Contributed Surplus

Balance, December 31, 2003 $ 132
Stock based compensation (Note 6) 75
Transfer to stock compensation liability (197)
-------------------------------------------------------------------------
Balance, September 30, 2004 $ 10
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Under the previous stock option plan, the Company had recognized
$207,000 for stock based compensation in contributed surplus. As a result
of the amendments to the stock option plan in the second quarter, the
Company recorded a liability of $197,000 and reduced contributed surplus
by the same amount based on the appreciated value of the outstanding
stock options as determined using the June 30, 2004 closing share price.

(d) Stock Options

A summary of the status of the Company's stock option plan as at
September 30, 2004 is presented below:
Weighted
average
exercise
Number of price
Options $
-------------------------------------------------------------------------
Outstanding, December 31, 2003 444,001 4.74
Granted 456,700 5.09
Exercised - -
Expired/Cancelled (34,500) 4.48
-------------------------------------------------------------------------
Outstanding, September 30, 2004 866,201 4.94
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Options exercisable at September 30, 2004 133,419 7.21
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Subsequent to September 30, 2004, options to purchase 73,000 common
shares at a weighted average price of $4.41 were cancelled.

On April 28, 2004, the shareholders of Hawker approved amendments to the
Company's stock option plan to provide for a cash payment feature as
described in note 1 and to increase the number of common shares reserved
for issuance under the plan by 1,800,000.

(e) Per Share Amounts

Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
-------------------------------------------------------------------------
Weighted average common
shares outstanding 42,269,507 25,771,637 41,121,669 13,840,301
Effect of dilutive
stock options - - - -
-------------------------------------------------------------------------
Weighted average diluted
common shares
outstanding 42,269,507 25,771,637 41,121,669 13,840,301
-------------------------------------------------------------------------
-------------------------------------------------------------------------

For the three and nine months ended September 30, 2004 and 2003, all of
the stock options were excluded from the computation of diluted loss per
share as the effect on the net loss for the period of the issue of
additional shares on the conversions would be anti-dilutive.

7. STOCK BASED COMPENSATION

Options granted between January 1, 2003 and March 31, 2004 were accounted
for using the fair value method. The fair value of common share options
granted during the three months ended March 31, 2004 was estimated to be
$289,000 as at the date of grant using the Black-Scholes option pricing
model and the following weighted average assumptions:

Three Months Ended March 31, 2004
-------------------------------------------------------------------------
Risk-free interest rate (%) 3.53
Expected life (years) 4.00
Expected volatility (%) 51.48
Expected dividend yield (%) 0
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The estimated fair value of the options was amortized to expense over the
options' vesting period on a straight-line basis. For the period ended
March 31, 2004, stock based compensation expense of $75,000 was included
in general and administrative expenses.

8. RELATED PARTY TRANSACTIONS

A director of the Company is a partner of a law firm that was paid
$254,000 for legal services for the nine month period ended
September 30, 2004. The fees charged were based on standard rates and
time spent on Company matters and have been included in general and
administrative expense, share issue costs and the cost of business
acquisitions.

A director of the Company is an executive officer of an oil and gas
supplies and services company that was paid $203,000 for supplies and
services received during the nine month period ended September 30, 2004.
Gross obligations under equipment financing arrangements entered into
with this company totaled $612,000. The services and supplies were
invoiced to Hawker at standard company prices.

9. FINANCIAL INSTRUMENTS

The Company has entered into the following financial derivatives:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) AECO Price (GJ/d) Term
-------------------------------------------------------------------------
Collar 5,000 $5.50 - $6.35 April 1, 2004 to
October 31, 2004
Collar 8,000 $5.50 - $6.40 April 1, 2004 to
October 31, 2004
Collar 5,000 $5.50 - $6.36 April 1, 2004 to
October 31, 2004
Fixed Price Swap 5,000 $5.745 August 1, 2004 to
October 31, 2004
Fixed Price Swap 5,000 $5.7725 April 1, 2004 to
October 31, 2004
-------------------------------------------------------------------------
-------------------------------------------------------------------------

The following aggregator plantgate sales contracts were outstanding as at
September 30, 2004:

-------------------------------------------------------------------------
Transaction Type Volume (GJ/d) Contract Price (GJ/d) Expiry
-------------------------------------------------------------------------
Cogeneration Fuel
Supply 263 $1.959 - $2.217 October 31, 2008
Daily Declining
Profile 841(1) Netback(2) October 31, 2011
Reserve Based 260 Netback(2) Life of reserves
Reserve Based 63 Netback(3) Life of reserves
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Notes:
(1) The Company's obligations under this contract will, on November 1 of
each succeeding year, decline to the following:

-------------------------------------------------------------------------
Date Obligation (GJ/d)
-------------------------------------------------------------------------
November 1, 2004 724
November 1, 2005 623
November 1, 2006 and thereafter 568
-------------------------------------------------------------------------

(2) TransCanada Pipelines Limited netback pricing.

(3) Progas Limited netback pricing.

Based on dealer quotes, had all the above contracts been closed on
September 30, 2004, a loss of $1,580,000 would have been realized.

10. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Changes in non-cash working capital were comprised of the following:

Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
-------------------------------------------------------------------------
Accounts receivable $ 1,553 $ (361) $ 1,756 $ (2,185)
Prepaids and other current
assets (79) (257) (456) (854)
Accounts payable and accrued
liabilities (4,513) 2,104 (3,618) 7,276
Less working capital
deficiency acquired (Note 2) - - (1,000) -
-------------------------------------------------------------------------
Net change $ (3,039) $ 1,486 $ (3,318) $ 4,237
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Net change by activity:
Operating $ (1,300) $ 2,502 $ (476) $ 2,708
Investing (1,796) (621) (2,108) 1,529
Financing 57 (395) (734) -
-------------------------------------------------------------------------
Net change $ (3,039) $ 1,486 $ (3,318) $ 4,237
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Additional information:

-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
-------------------------------------------------------------------------
Cash interest paid $ 570 $ 186 $ 1,956 $ 215
Cash taxes paid 5 - 658 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------

11. CAPITAL ASSETS

At September 30, 2004, the Company capitalized $1,332,000 of overhead
directly related to exploration and development activities. Unproved
properties and related seismic costs amounting to $24,950,000 have been
excluded from the depletion and depreciation calculation for the nine
months ended September 30, 2004.

12. FUTURE INCOME TAXES

The future income tax asset that has been recorded is derived solely from
the excess of resource tax pools over the accounting tax basis of the
capital assets of the Company.

The Company also has approximately $5,700,000 of unclaimed investment tax
credits available to reduce future years' income taxes payable.

Hawker is an Alberta-based corporation engaged in the business of
exploring for and developing oil and natural gas reserves in western Canada
and acquiring oil and natural gas properties. Hawker's common shares are
listed on the Toronto Stock Exchange under the symbol "HKR".

ADVISORY: The Toronto Stock Exchange has neither approved nor disapproved
of the information contained herein. Certain information regarding the
company, including management's assessment of future plans and operations, may
constitute forward-looking statements under applicable securities law and
necessarily involve risks associated with oil and gas exploration, production,
marketing and transportation such as loss of market, volatility of prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers and ability to access sufficient capital from
internal and external sources; as a consequence, actual results may differ
materially from those anticipated. The company assumes no obligation to update
the forward-looking statements or to update the reasons why actual results
could differ from those contemplated by the forward-looking statements.

%SEDAR: 00002576E

http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256

For further information

PLEASE CONTACT: Hawker Resources Inc., Mr. David A. Tuer, President & CEO, Tel.: (403) 290-4874
Barry R. Herring, Senior Vice President & CFO, Tel.: (403) 290-4856

--------------------------------------------------------------------------------
Source: Hawker Resources Inc.

Amaunet

10/29/04 10:49 AM

Post #170

Re: #169: @Amaunet - Alberta Land Sale Results October 13, 2004

Alberta Land Sale Results October 27, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0393 61-20W4 256.00 Hawker Resources Inc. 50.00% $32,476.16 $126.86
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0396 61-20W4 256.00 Hawker Resources Inc. 50.00% $32,476.16 $126.86
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0397 61-21W4 256.00 Hawker Resources Inc. 50.00% $24,033.28 $93.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0398 61-21W4 256.00 Hawker Resources Inc. 50.00% $24,033.28 $93.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0399 61-21W4 256.00 Hawker Resources Inc. 50.00% $24,033.28 $93.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_550.asp

Amaunet

10/17/04 9:54 PM

Post #169

Re: #166: @Amaunet - Alberta Land Sale Results September 29, 2004

Alberta Land Sale Results October 13, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0122 51-7W4 256.00 Hawker Resources Inc. 50.00% $27,591.68 $107.78
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0139 60-20W4 256.00 Hawker Resources Inc. 50.00% $14,817.28 $57.88
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_548.asp

stud

10/09/04 11:15 PM

Post #168

Re: #167: @Amaunet - There has been some upward pressure on HKR

downward pressure.oil &gas goes up hawker goes down

Amaunet

10/02/04 11:34 AM

Post #167

There has been some upward pressure on HKR on the TSX recently because guidance is to be revised in Oct/04 and/or delayed 2004 Lavoy tie-ins will continue to build 2005 production. - Peters and Co. Oil and Gas Presentation

Or maybe it is just the high price of oil and gas.

Speculation.

-Am

Amaunet

09/30/04 3:58 PM

Post #166

Re: #165: @Amaunet - Alberta Land Sale Results September 15, 2004

Alberta Land Sale Results September 29, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0694 8-8W4 256.00 947380 Alberta Ltd. 5.00% $40,005.12 $156.27
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0777 47-5W4 64.00 Hawker Resources Inc. 50.00% $3,697.92 $57.78
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0794 50-4W4 256.00 Hawker Resources Inc. 50.00% $14,791.68 $57.78
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_541.asp

Amaunet

09/16/04 10:47 AM

Post #165

Re: #163: @Amaunet - Alberta Land Sale Results September 1, 2004

Alberta Land Sale Results September 15, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0402 7-9W4 256.00 947380 Alberta Ltd. 5.00% $25,999.36 $101.56
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0404 8-9W4 256.00 947380 Alberta Ltd. 5.00% $57,500.16 $224.61
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0405 8-9W4 256.00 947380 Alberta Ltd. 5.00% $57,500.16 $224.61
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0406 8-9W4 256.00 947380 Alberta Ltd. 5.00% $32,504.32 $126.97
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0484 47-5W4 256.00 Hawker Resources Inc. 50.00% $13,742.08 $53.68
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0492 53-1W4 256.00 Hawker Resources Inc. $105,500.16 $412.11

A0494 53-1W4 256.00 Hawker Resources Inc. $64,942.08 $253.68

A0496 53-4W4 256.00 Hawker Resources Inc. 50.00% $13,742.08 $53.68
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0508 58-5W4 256.00 Hawker Resources Inc. 50.00% $13,742.08 $53.68
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

A0509 58-5W4 256.00 Hawker Resources Inc. 50.00% $13,742.08 $53.68
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

Amaunet

09/10/04 10:21 AM

Post #164

Hawker Resources Inc. Webcast at Peters & Co. Limited 2004 North AmericanOil & Gas Conference - September 14, 2004

CALGARY, Sep 10, 2004 (Canada NewsWire via COMTEX) -- Hawker Resources Inc. Webcast:

Hawker Resources Inc. (TSX: HKR)
Peters & Co. Limited 2004 North American Oil & Gas Conference
September 14, 2004 16:20 ET

To access this event, please enter www.newswire.ca/en/webcast/pages/en/peters20040914/index.html in your web browser and select the appropriate company link from the day's events.

For a complete listing of upcoming and archived webcasts available through Canada NewsWire, please visit our events calendar at www.newswire.ca/en/webcast/index.cgi. CNW's webcast of earnings calls is consistent with Market Regulation Services Inc. (RS) initiatives to broaden investor access through the use of new technology.

VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: www.newswire.ca/en/releases/orgDisplay.cgi?okey=20256 www.newswire.ca/en/releases/orgDisplay.cgi?okey=47473

CONTACT: For further information: Hawker Resources Inc., Mr. David A. Tuer,
President & CEO, Tel.: (403) 290-4874; Mr. Barry R. Herring, Senior Vice
President & CFO, Tel.: (403) 290-4856, Fax: (403) 266-1814,
info(at)hawkerinc.com, www.hawkerinc.com

News release via Canada NewsWire, Calgary 403-269-7605

Amaunet

09/03/04 10:48 AM

Post #163

Re: #158: @Amaunet - Alberta Land Sale Results August 18, 2004

Alberta Land Sale Results September 1, 2004

PLAINS REGION

LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0015 8-9W4 256.00 947380 Alberta Ltd. 5.00% $40,005.12 $156.27
Bumper Development Corporation Ltd. 32.50%
Hawker Resources Inc. 55.50%
Silver Strand Energy Corporation 7.00%

A0125 58-16W4 256.00 Hawker Resources Inc. 50.00% $40,619.52 $158.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%

http://www.explorer.nickles.com/common/landsale/lsale_537.asp

stud

08/27/04 10:54 AM

Post #162

time to sell

no faith in management,fancy titles, oil above 40 bollars stock keeps going down.what a lousy investments.

stud

08/20/04 11:52 AM

Post #161

Re: #160: @Amaunet - I know. I’m with you. There is

ya phillips is chairman of guard resources . why would tuer put up with this.sell the property and buy something else with the money.i dont think anyone else will partner with guard after what they have done to hawker.

Amaunet

08/19/04 1:28 PM

Post #160

Re: #159: @stud - dont understand why hawker is buying land with

I know. I’m with you. There is something we are missing.

The only name I could find is Dale Richmond, CEO at OMERS. This however is dated information - Thursday, December 12, 2002. Does OMERS Energy have their own CEO? Are you referring to Gordon w. Phillips?

Moreover, OMERS and Superman have recently been buying a little without Hawker.

Another point, if you owned a company would you be getting anywhere near Guard as an operator after watching what they did to Hawker? David in presenting the case as such may have given Hawker a little more influence. You tell me Guard is the operator of a property I am interested in and I will leave skid marks.

Tuer did make some moves after this incident and he made them fast.

Reference:
People should be pleased that pension funds are building energy and bridge projects, instead of government, Ambachtsheer said. "They are independent players who aren't going to get into anything stupid because they have to be able to pay pensions." Dale Richmond, CEO at OMERS, said that when governments in the early 1990s stopped financing a lot of public works by issuing bonds they left the country with an infrastructure deficit.
The fund spotted an opportunity, and it's a good thing it came along, because it has maxed out its best performer, real estate. In the interest of maintaining a diversified portfolio, OMERS -- which owns Oxford Properties Group -- will actually be unloading some property, Richmond said.

http://66.102.7.104/search?q=cache:CqWr__6YPZcJ:www.gasandoil.com/goc/news/ntn25095.htm+OMERS+energy....

Are you Canadian?

Thanks,

-Am

stud

08/19/04 1:01 PM

Post #159

Re: #158: @Amaunet - Alberta Land Sale Results August 18, 2004

dont understand why hawker is buying land with omers & superman when guard resources is holding hawker hostage at their major property. the president of omers & superman is running guard resources.

Amaunet

08/19/04 12:09 PM

Post #158

Re: #147: @Amaunet - Alberta Land Sale Results July 21, 2004

Alberta Land Sale Results August 18, 2004

PLAINS REGION
LEASE TWP & RGE HECTARES PURCHASER BONUS PRICE/HECTARE

A0475 52-16W4 256.00 Hawker Resources Inc. 50.00% $32,683.52 $127.67
Omers Energy Inc. 25.00%
Superman Resources Inc. 25.00%
http://www.explorer.nickles.com/common/landsale/lsale_546.asp

Note: Hawker seems to have cut back on their land purchases. They also did not buy in the August 4, 2004 sales. I have seen this approximate behavior right before the Pointwest and Zorin acquisitions. Tuer also curtailed buying during the time he probably was making an offer to Guard. Very difficult to get a fix and this could mean anything.

Alberta Land Sales Results August 4, 2004

http://www.explorer.nickles.com/common/landsale/lsale_531.asp

stud

08/14/04 5:13 PM

Post #157

haker should sell the lavoy property because they dont have any control over it.

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