HAWK EXPLORATION LTD. CL. A V.HWK.A

Q2 Summary

[UptownGirl]

Here's a very brief summary of v.HWK's operations and finances as released in their Q2 financials and MD&A.

At the current share price of 0.40, HWK appears undervalued based on traditional metrics.

- reported record Q2 cash flow of $1.6 mil. or 0.05 per share (26% increase over Q2 in 2012)

- 6 month cash flow of 0.08 / share

- net income of $300,000 (0.01 / share), a 600% increase over Q2 in 2012

- Q2 average production of 628 boed; again a record; 29% increase over Q2/2012...this was the fifth consecutive quarter of increased production

- current production of 700 boed (Sask./Alta.)

- debt:annualized cash flow of 0.8:1

Given Hawk's steady growth in production (from low risk properties) and attractive financial metrics including trading under 3 x estimated annualized cash flow and very low debt to cash flow ratio (0.8:1) while recording net income, the current sp of 0.40 presents an attractive entry point into HWK.v.

[UptownGirl]

It's also worth noting that HWK's net asset value (NAV) at the end of 2012 was $1.09 per fully diluted class A shares; and 0.85 per fully diluted class A and B shares.  HWK.a closed Friday at 0.40. Proved plus Probable PV10 (at Dec 31/12) (1) 39,213 Undeveloped Land 5,344 Net Debt (4,906) Proceeds from Options 1,805 Net Asset Value 41,456 Fully diluted Class A Shares 38

[dacre]

Nice find.  Quite attractive multiples.  Definitely overlooked.  Liquidity is an issue.  Obviously those holding it know what they got and don't want to sell at these prices.  Could easily be a takeover candidate if it stays at current levels while showing metrics and production growth that it is.