VANCOUVER, B.C. May 1, 2014 – Hillcrest Resources Ltd. (the “Company” or Hillcrest”) (TSX.V : HRH) As previously announced the surface facility installation has been completed and the Nadsoil Brown #1 well, located in Newton County, Texas, commenced oil production for sales on April 9, 2014 and commenced gas production for sales on April 19, 2014. The well, drilled to a total depth of 7,504 feet, has produced oil and gas at a daily average of 71 barrels of oil equivalent per day (boepd) on a severely restricted choke of 8/64th of an inch, since commencing the gas sales. Hillcrest has a 100% working interest in the Brown #1, which represents the Company’s largest working interest in any well to date.
The Brown #1 well is producing both oil and natural gas from perforations over a 2.5 foot interval located near the base of the interpreted oil column. The well commenced production in early April, and the average daily production since then has been approximately 45 barrels of oil per day (bopd) and approximately 43 barrels of water per day (bwpd). A gas line has also been installed so that the natural gas associated with the oil production can be captured and sold. Since installation of the gas line, the average daily oil production has increased to an average of 55 bopd and the average rate of gas production has been approximately 370,000 standard cubic feet per day (scfpd). Converting the gas production to barrels of oil equivalent on a revenue basis, the well has produced an average of 71 boepd since commencing both oil and gas production. The Company is monitoring the production rates and is considering options for optimization of production from the currently producing interval, including the possibility of adding additional perforations to increase the oil production rate. There are multiple additional pay intervals within this well-bore, as identified from wire-line logs and sidewall cores, and these will be brought into production over time.
“The Brown #1 well is continuing to prove valuable to Hillcrest” states Don Currie, the Company’s CEO and Chairman. “The initial production test from the well was very encouraging and with oil and gas production stabilizing we consider the first month of production a significant success. Additional perforations over the current pay zone may be added in due course with the objective of increasing the daily flow rate while maximizing the ultimate hydrocarbon recovery from the zone. At current oil and gas production rates, this 100% working interest well is the Company’s largest single producer on a barrels of oil equivalent (boe) basis and by extension our largest revenue producer.”
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
For more information on Hillcrest Petroleum Ltd., contact Donald Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information is provided as of the date of this news release. The forward-looking information reflects our current expectations and assumptions and is subject to a number of known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any anticipated future results, performance or expectations expressed or implied by the forward-looking information. No assurance can be given that these assumptions will prove correct. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Investors are advised to consider the risk factors under the heading “Risks and Uncertainties” in the Company’s MD&A for the year ended December 31, 2021, available at www.sedar.com for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance, or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.