VANCOUVER, B.C. – Hillcrest Petroleum Ltd. (the “Company”) is pleased to announce that it is commencing operations to re-start oil production from the West Hazel Oil field in Saskatchewan, with first oil sales expected in November, 2018.
Under the terms of its Joint Venture Agreement, the Company will provide 100% of reactivation costs to return the field to production through a wholly owned subsidiary to earn a 75% Working Interest, reverting to 50% after reactivation costs are paid back from cash flow.
The West Hazel field produced over 200 bbl/day oil before being shut in by the previous operator due to financial distress in 2015.
Restoring production from the West Hazel field includes refurbishing and upgrading production facilities including water disposal and returning four previously producing wells to production.
Initial oil production is expected to be between 150 and 250 bbl/day, with potential to increase to 500 bbl/day with further and previously unidentified well recompletions and development drilling in 2019.
Immediate reactivation costs are expected to total approximately $750,000.
For more information on Hillcrest Petroleum Ltd, contact Don Currie toll free at 1-855-609- 0006 or visit the Company’s website at www.hillcrestpetroleum.com
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.
FORWARD LOOKING STATEMENT HERE
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