$HWKR News Alert - Hawker Energy Completes Acquisition of TEG Oil & Gas U.S.A., Inc.

REDONDO BEACH, Calif., - (http://www.financialnewsmedia.com News Alert) - Hawker Energy, Inc. (OTCQB: HWKR) (the \"Company\" or \"Hawker\") announces it closed its previously-announced acquisition of 100% of the shares of TEG Oil & Gas U.S.A., Inc. (\"TEG\") from Sefton Resources, Inc. (LON: SER) (\"Sefton\"). TEG owns the Tapia Canyon and Eureka oil fields in California, as further described below. Hawker purchased all of the shares of TEG by issuing 3 million shares of Hawker\'s common stock and a five-year warrant to purchase up to an additional 5 million shares of Hawker\'s common stock for $0.25 per share. In addition, Hawker and its subsidiary have made a number of advances totaling approximately $1.65 million to TEG beginning April 2014 through the present, pursuant to a secured subordinated note. This amount constitutes additional consideration for the acquisition, as this loan receivable will not be settled prior to the closing of the acquisition of TEG.



Darren Katic, Chief Executive Officer of Hawker, stated, \"This is a transformative event for the Company and its shareholders. We have acquired a low-risk development asset capable of producing over 500 barrels per day and in the process filled key spots in our management team. The Company is well positioned to develop these newly acquired assets, to better exploit our legacy portfolio and to capitalize on current market conditions as an opportunistic buyer of reserves in California.\"



Description of Assets Acquired



Tapia Canyon Oil Field



The Tapia Canyon Oil Field is located about 40 miles north of Los Angeles, California. The field was discovered in 1957, when the Yule No. 2 well tested at 120 barrels per day of 18-degree API oil. The Tapia Canyon Oil Field commenced production in August 1957. Production is from the Yule Reservoir, which is approximately 1,000\' deep and, on average, greater than 100\' thick over the majority of the oil field.



TEG holds four oil leases covering 280 acres within the Tapia Canyon Oil Field. Based on information provided by the seller, proved net recoverable reserves are estimated by Hawker to be 3.5 million barrels of oil.



After completion of well repairs currently underway and funded by Hawker through its loan to TEG, 18 active wells...