Pre IPO price 4p
Opening price on debut 25p
Floatation price 46p to raise 14million to extend Jolly Ranch
Current fair value estimate 114p
Market cap 70.59 million.
Value of Cisco Springs investments 98 million.
Value of Vogel investments 75 million.
Desparado trucking now Nightfox 250,000 for a 50% stake with partner Running Foxes.
Centurion Project Kansas, 150,000 for a 50% stake.
Jolly Ranch Colorado, 40,000 acres cost 356,000 for a 50% stake.
Cash in bank 7.75 million.

As this EPIC opens on AIM today anything could happen. On the one hand you have traders trying to cash in a sixfold profit. You will also have a clambering of traders after shares because, firstly they could only get 75% of their allocation because of demand. Secondly at 25p this company is still way under valued.

It seems to me that HAWK is doing much the same as IVE and SER by re- entering old oilfields that became uneconomic but now with the price of oil where it is are worth re-working. However none of these wells were enormous producers in the past so we cannot expect a sudden bonanza but more likely a steady but small flow of gas and oil. The question is will production be sufficient to justify their market capitalisation?

halifax, like-for-like with the past isn't really workable, not only are detection methods a huge improvement from the old-days (3D seismic for one..) but recovery methods are much more efficient. HAWKs' oil is mostly a nice bonus, as first and foremost it is a gas play -and they have a huge amount for an eager market. The imminent OPC report will be regarded as the source of up-to-date fact on HAWK's market cap projections. Best stay away if you're in doubt though, but I think you'll rue watching HAWKs' sp as time goes by, as production is now stepping up month after month. I cannot miss getting on what will be a mid-tier O&G company at these prices, with hydrocarbon prices going the way they are.

gnashlevel2 dont disaagree but would like to know what is the current level of production and see some projections for 2008/9?

anybody know anythink about nrock compesantion ,appreciate yr views thanks

halifax, I could only say production is growing and will later be 'significant'
Of course, by the time it is 'significant' the current sp will be ancient history. You sort have to figure which companies will reliably do the job given time, and invest early. I'd love to have got on BP (just for examples' sake) under a quid :-)
You can only make such killings by getting on early, very early, and for that the risk-to-benefit of HAWK is extremely attractive to me.

gnashlevel2 my concern is that if production is only the equivalent of say 100bopd per well this would not be sufficient to justify a significant increase in the sp; by the way I am in at 46p.

Well far from repeating but the last indy Buy note that was 235p while not even pricing in everything and it was a very well researched note for what HAWK projects it did cover. I can't see the company reaching peak production before it is bought out, that's kind of the whole point for me being in; reserves and best extraction method will be proved and the whole shebang sold. That's why I'm in, for the relatively quick route to a handsome exit sp, rather some of the other plays that might be more of a never ending story. An tight exit strategy does focus things and physically cuts through the nonsense like the sp dips we saw.

46p? Lucky you, possibly a 6 times return looks just a case of waiting another Summer or so. Between you and me I think we'll see above 3 come then.

Gentlemen, HAWK's aim is to build up their value to mid-tier and then sell themselves as a trade sale. For this they merely have to prove up assets, actual production may not actually be that important

Have credit suisse , increased or decreased their holdings ?

Increased from Zero holding I think, but may be wrong

When is the next update due ?

this one looks to be going down a fair bit, glad i sold some time ago

Doesn't surprise the sp is slipping so far they haven't produced any gas or oil. At least IVE is producing a few buckets full.

All three wells will test the primary target, the Marmaton, as well as other zones. Initial production testing on the three wells, which is expected to take approximately 45 days to complete, will commence in July 2008.

fliper testing is ok but it doen't generate cashflow.

A small bit of research would duly delve out the fact that AT THIS TIME HAWK are in fact producing natural gas. Presumably this will generate cashflow!!!

hushpuppy research shows HAWK has not sold any gas or oil yet hence no cashflow.Spent a lot of our money on buying land maybe they will find some use for it.

its ok hushpuppy, hally aint the best at doing research.....i dont hold this any more but short vterm looks bad for sp....however long term this will be a winner

Are they looking to be taken over one day ?

Yes