West Hawk Development Corp. Finalizes Sales and Transportation Agreements with Encana Oil and Gas
Wednesday March 21, 2:12 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Mar 21, 2007 -- West Hawk Development Corp. (the "Company") (CDNX:WHD.V - News)(Frankfurt:H5N.F - News) is pleased to announce that West Hawk Energy, USA, has finalized and signed a sales and marketing agreement and a transportation agreement with EnCana Oil and Gas (USA) for EnCana to purchase all of the gas produced from the Company's Figure 4 project.
The agreement, which is effective immediately, allows West Hawk Energy, USA, the option to nominate either the Colorado Interstate Gas (CIG) Hub or the Cheyenne Hub as the point of sale. West Hawk will receive the nominated hub price less $0.10 or $0.25 per MCF at the respective hub for Encana to transport and sell the gas
. The agreement also allows the Company the option to nominate a portion of the gas for sale to an end user.
John Reeves, Jr., CEO, West Hawk Energy, USA, stated, "This is a major milestone in the development of the Figure 4 project. To have an off-take agreement with the largest gas company in North America to take all of the gas ensures additional long term security for the project." Drilling of the project's second well is at an 8,230' depth, and is on budget for both cost and drilling time. The project's first well is undergoing completion at this time, and construction of the third well pad is underway.
As an update on the transaction with the Lu'An Mining Industry Group, who agreed to purchase a 25% interest in the project, the deal is projected to be closed as early as this Friday and at the latest by next Tuesday according to discussions between West Hawk's Board of Directors and Dr. Chen from Beijing, China yesterday.
Additional information will be available on our website at http://www.westhawkdevelopment.com
On behalf of the Board of Directors,
Dr. Wm. Mark Hart, President, CEO and Co-Chairman
Chris Verrico, Co-Chairman
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.
; the Tulita coal property in the Northwest Territories; the Groundhog coal property located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.
West Hawk Development Corp.
Dr. Wm. Mark Hart
President, CEO and Co-Chairman
West Hawk Development Corp.
(604) 669-9335 (FAX)
Source: West Hawk Development Corp. http://biz.yahoo.com/iw/070321/0229441.html