West Hawk Development Corp fka WHD

[lowpdop]

Surprise you guys do not have much DD on the Arkoma project here; which could be generating 150-600 million annually starting in ~12 months if the resource/CAPEX look good. This recent PR with Lu'an is huge IMO, but Arkoma if all is good for a mine should be huge as well.

IMO with all these company developments and some follow through + current coal market/momo: WHD can be a 500 million to 1 billion market cap company in 12-16 months. WHD has 4/5 company making projects currently in the works, most with billion dollar partners.

Arkoma coal project DD:

From WHD PR, deducing from project description, coal quality from the coal beds in that region, and rail line placement--Arkoma project has a high probability of being in LeFlore County Oklahoma and Sebastian county Arkansas.

From USGS:

Potential Bituminous coal resource for entire LeFlore County Oklahoma:
1.93 Billion Bituminous short tonnes of coal using all coal beds
and
482 million Bituminous short tonnes using just the hartshone coal formations.

All Coal-Beds
http://energy.er.usgs.gov/temp/1212528924.htm

Just the Hartshone coal bed which has some of the best CBM rates in the country:

http://energy.er.usgs.gov/temp/1212529345.htm


Coal Presentations, Reports and Maps
Great presentation of the basin--
@http://www.ogs.ou.edu/coalpres.php

Download this PDF for reference:

Oklahoma Coalbed-Methane Activity, 2006 update
WHD's Arkoma coal project should be in LeFlore county Oklahoma and Sebastian county Arkansas, which is the tail of the "commercial coal belt" in eastern Oklahoma.

Lots of current CBM background and coal structural maps across the basin, in particular WHD's area; which IMO appears to be the best in the basin for coal quality. Pages/figures--6,7,8; and in particular 9,10,11 are of particular interest to the coal people--many maps and info for those that like CBM as well as coal with IP rates and placement across the basin.

Coal and Coalbed Methane

Coal is an organic-rich rock derived from plant material deposited in a swamp, marsh, or bog. Coal varies by grade (percentage of mineral impurities), type (organic composition), and rank (level of coalification). Rank describes the transformation from peat(unconsolidated plant remains) through lignite, sub bituminous, bituminous, semi anthracite, and anthracite coal (rock) from increasing burial pressure, temperature, and time.

The coalfield in eastern Oklahoma is divided into the northeast Oklahoma shelf and the Arkoma Basin based on physiographic and structural differences. The commercial coal belt contains coal beds >= 10 in. thick that are mineable by surface methods at depths < 100 ft and coal beds >=14 in. thick that are mineable by underground methods. The noncommercial coal-bearing region has limited information on coal thickness and quality or contains coals that are too thin, of low quality, or too deep for surface mining.

The age of commercial coal-bearing strata in the Oklahoma coalfield is Desmoinesian (Middle Pennsylvanian). Generalized stratigraphic columnsof the northeast Oklahoma shelf and Arkoma Basin show about 40 named and several unnamed coal beds and their range in thickness measured from outcrops, mines, and shallow core samples.

Coal rank,generalized for all coals at or near the surface, ranges from high-volatile bituminous in the northeast Oklahoma shelf and western Arkoma Basin to medium-volatile bituminous and low-volatile bituminous in the eastern Arkoma Basin in Oklahoma. Rank increases from west to east and with depth in the Arkoma Basin, attaining semi anthracite in Arkansas.

Remaining identified bituminous coal resources in beds = 10 in. thick total 8.09 billion short tons (1 short ton equals 2,000 pounds) in 19 counties in eastern Oklahoma, an area of approximately 8,000 square miles. About 1.6 billion short tons of bituminous coal reserves (the economically recoverable part of coal resources) remain in Oklahoma. Oklahoma ranks 19th of 32 coal-bearing states in the U.S. based on coal reserves. From 1873-2001, 281 million short tons of bituminous coal were produced from underground and surface mines in the Indian Territory and Oklahoma. Peak annual coal production was 5.73 million short tons in 1981, with smaller production peaks during and immediately following World War I and World War II.

There are many uses for coal, primarily in combustion (generation of electricity), carbonization (coke used to make steel), conversion(gasification and liquefaction), and industrial (process heat). Coal is used in Oklahoma in electric power plants and lime and cement kilns (OGS Information Series 9).

Coal generates and stores large quantities of natural gas (methane). Coal-bed methane activity in Oklahoma is in the northeast Oklahoma shelf and Arkoma Basin.

Potential coalbed methane resource: 1.58 to 3.55 TCF in place.

Introduction to the Arkoma Coalfield

Identified coal resources are present in an area of
approximately 8,000 square miles in 20 counties in
eastern Oklahoma. This area is within the southern
part of the Western Region of the Interior Coal Province
of the United States. The coal beds are of Middle
and Late Pennsylvanian age, 0.8–10 ft thick, 0.4–6.5%
in sulfur content, coking or non-coking, contain
11,400–15,000 Btu/lb, and are low (2–7%) in inherent
moisture. Oklahoma contains the most significant deposits
of bituminous coal west of the Mississippi
River and east of the Rocky Mountains. Although the
McClellan-Kerr Arkansas River Navigation System is
available for barging coal to international ports, most
of the coal production is shipped by truck or rail.

As of January 1, 1994, 8.1 billion short tons of remaining
coal resources have been identified; 76% are
in the Arkoma basin and 24% are in the northeast
Oklahoma shelf area. About 41% of the State’s coal resources
are low- and medium-volatile bituminous in
rank and are present in the Arkoma basin. About 1.6
million tons of coal was produced in 2003 by four mining
companies at 11 mines in seven counties.