West Hawk Development Corp.
TSX VENTURE : WHD

West Hawk Development Corp.

March 24, 2009 11:23 ET

West Hawk Appoints a New CFO and Updates Its Activities

DENVER, COLORADO--(Marketwire - March 24, 2009) - West Hawk Development Corp. (TSX VENTURE:WHD) (the "Company") would like to announce the appointment of John T. Owen as CFO and provide an update as to its recent activities. Mr. Owen has twenty five years experience as corporate Treasurer, Controller and CFO. His industry experience includes rocky mountain oil and gas, and international mining, production and infrastructure industries, plus nine years in public accounting. He holds a current Colorado Certified Public Accountant license (inactive). Mr. Owen graduated from Beloit College with a BA in Economics and a Masters in Business Administration, Economics emphasis, from the University of California, Berkeley.

At this time the Company continues to review drilling data from the Groundhog coal property, located in British Columbia, Canada. The Company is using the drilling data to build a thorough geological model for the property.

Two Degrees LLC, Accounting firm has completed its review of the West Hawk Development Corp., West Hawk Energy (USA), LLC, (WHE), and West Hawk Holdings accounting records. This review took place in order to ensure valid accounting records for the year end audit, Lu'an and to provide accurate and concise accounting records for the Company as a whole. Currently, Two Degrees is satisfied with the status of the West Hawk accounting records and the readiness to be audited.

The Company continues to work diligently with the TSX.V in regards to its cease trade order. The Company has submitted answers to the questions presented by the TSX.V along with supporting documents for those answers. The Company will continue to work with the TSX.V to rectify this issue as soon as possible.

The Company would like to provide an update regarding the West Hawk Energy (USA), LLC, arbitration proceeding. On December 1, 2008, WHE filed a Demand for Arbitration with the American Arbitration Association ("AAA") against EnCana Oil and Gas (USA) Inc. ("EnCana") raising claims under the parties Drilling and Development Agreement dated May 1, 2006 (the "DD&A"). WHE has alleged that EnCana breached the DD&A by making WHE's performance thereunder more difficult. The Company expects that AAA will appoint the panel of Arbitrators in the near future as per AAA Rules.

The Company also continues to work diligently with the law firm of Brownstein, Hyatt, Farber, Schreck, and Chiron Financial Advisors, specialists for the West Hawk Energy (USA), LLC, reorganization plan. It is the company's intention to provide a permanent and sustainable solution for the gas project.

On March 10, 2009 the West Hawk Development Corp. Board of Directors met for discussion. The Audit Committee met formally to discuss matters relating to the work currently being performed by Two Degrees. The meeting was led by Board member and Committee Chair, Richard F. Braun. The Audit Committee reviewed the work that has been completed by Two Degrees and is pleased with the results. The Compensation Committee, led by Board member David Francisco, also met during this meeting. The Committee discussed the Company's current compensation policy and agreed that all compensation would be maintained at the lowest possible levels.

"The Company has put all its efforts in cost reductions and in defining and implementing permanent solutions with the intent to provide shareholder value. Certainly the current worldwide financial crisis has hurt the Company. We expect to stay focused and our commitment will elevate us to the next step," said Gonzalo Torres-Macchiavello President & CEO.

On behalf of the Board of Directors,

Gonzalo Torres Macchiavello, President and Chief Executive Officer

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 and the Groundhog coal property located in northwest British Columbia.

Cautionary Note: This news release contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports the Groundhog coal property in British Columbia. 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 and development activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. 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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • West Hawk Development Corp.
    Gonzalo Torres Macchiavello
    President and Chief Executive Officer
    1-800-830-0988
    Website: www.westhawkdevelopment.com