VANCOUVER, B.C. December 22, 2014 – Hillcrest Resources Ltd. (the “Company” or Hillcrest”) (TSX.V: HRH US Symbol HLRTF) is pleased to announce that the Company has completed the purchase of Gulfsands Petroleum USA (“GPUSA”).
The acquisition of GPUSA includes all its assets, property, staff and both corporate and operational commitments. The acquired producing assets are located offshore Louisiana, in the shallow water portion of the Gulf of Mexico.
The previously announced $50,000 USD purchase price takes account of GPUSA’s ongoing operational commitments and its forward Asset Retirement Obligations (ARO). The ARO cost estimate for 2015 is approximately $2.4 million, net to Hillcrest. The acquisition of these producing assets will add approximately 180 barrels of oil per day (bopd) and 470 thousand cubic feet of natural gas per day (mcfpd) of incremental non-operated working interest production to Hillcrest.
The purchase includes GPUSA’s current staff and office located in Houston, Texas. Hillcrest will capture operational efficiencies by managing both its onshore and offshore operations from the Houston office effective immediately and intends to streamline the Company’s administrative processes by relocating its head office to Houston effective January 2015.
“This acquisition is a perfect fit for Hillcrest” states Don Currie, the Company’s CEO and Chairman. “As mentioned before, these new assets are complementary to our currently producing assets in Texas, and offer significant potential for future production growth through development drilling and well recompletions. The Company intends to participate in additional development drilling scheduled for late 3rd quarter 2015. We will keep our shareholders informed of developments regarding drilling as they occur. Commensurate with this acquisition, Hillcrest will relocate the operations headquarters to Houston.”
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.