West Hawk and FEV Energy to Acquire Coal Mine and Coalbed Methane Operation
May 14th, 2008
West Hawk Development Corp. is pleased to announce that it has entered into a letter of intent with FEV, a private Denver, Colorado based Energy Company to acquire and develop a coal mine and coalbed methane gas operation in Oklahoma and Arkansas.
Currently both companies, West Hawk and FEV, are in a due diligence process to evaluate the best mining and business alternatives for the coal property. As soon as this process is satisfactorily completed, both companies will start to develop the coal mine and coal bed methane extraction system. The property has existing infrastructure with access to rail, paved roads, water, and power on site. Water transportation is nearby and all permits are in place. The product has a long history of being used in the North American and International market and can be taken to market by either rail or water.
The coal resource has produced high quality metallurgical and thermal coal on a continuous basis since the early 1900’s. Farrell-Cooper Mining Company (”Farrell”), a private company based in Oklahoma and Arkansas, has mined the Hartshorne coal seam with surface mining techniques since the 1940’s. The low volatile, low moisture, 6 to 8% ash, and 1% sulfur product with in excess of 13,000 Btu per pound coal was processed through a preparation and processing plant and supplied to the high demand export and domestic metallurgical coal market.
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