WHITEHAWK ENERGY TO DEVELOP UNDERVALUED OIL AND GAS ASSETS IN KANSAS.
May 7, 2009
Whitehawk Energy, headquartered in Addison, Texas is aggressively working to develop properties in Northeast Kansas located in Jefferson County. The company is targeting potential acquisitions within Texas, Kansas, Oklahoma, Utah and Kentucky. Teams of geologists and petroleum engineers are currently evaluating more than 50,000 acres for potential acquisition. One potential property lies in Northeast Kansas within Jefferson County and the Forest City Basin.
The Basin covers approximately 32,000 sq miles and extends from Southwest Iowa to central Missouri. According to historical data, exploration in the Basin began in 1860 with the first discovery of 1,000,000 barrels in 1882. By the end of 1990, more than 100,000,000 barrels of oil have been discovered within the Basin. Forest City Basin reservoirs consist of Mississippian and Pennsylvanian Age reservoir rock.
Management stated, “We are eager to secure our initial oil and gas opportunity in Kansas due to the tremendous upside potential this area presents to E&P entities. Most of the assets we have identified are significantly undervalued. We have explored various opportunities and feel these currently exist due to the low price of crude as compared to levels reached in 2008. Many operators are divesting portions of their portfolios and laying down equipment while we are busy building and preparing for the future rise of commodity prices.
Such an opportunity would allow financial partners of both our organizations to capitalize on local expertise and build upon the solid foundation presently being poured. We expect to announce in the following days the sort of structure that could potentially allow its investors the ability to participate in the acquisition and further development of producing oil and gas assets within targeted areas of interest.” Whitehawk Energy Management concludes, “The ability to pair existing wells alongside our diverse array of drilling prospects would provide a balanced portfolio of oil and gas assets. Many of our competitors are solely focusing on drilling prospects thus providing only probable and possible reserves. It is our intention to build upon our existing potentially recoverable reserves with proved reserves that can further build a case for an increase in our market capitalization. It is this way that Whitehawk intends on growing the company.”
The company plans on issuing operational updates on all areas of interest and results from field activities. With this sort of diversification, we are strategically acquiring oil and gas bearing assets in several basins to capitalize on the current market that currently exists.