VANCOUVER, B.C. – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”) is pleased to announce it has executed a Memorandum of Understanding (MOU) with Xstate Resources Limited (“Xstate”), a publicly listed Australian oil and gas company, to jointly pursue oil and acquisitions in Canada and onshore USA. Hillcrest has identified and is currently reviewing producing oil and gas assets in the Western Canada Sedimentary Basins for the purpose of acquisition and development. Xstate has been participating in and is reviewing potential acquisition of various U.S. oil and gas projects.
Under the Strategic Alliance, Xstate and Hillcrest will offer participation in North American acquisition opportunities to each other. Should either company elect to pursue one or more of the acquisition opportunities, the originating company will facilitate the acquisition on behalf of the both, may operate the acquired assets under joint venture agreements and implement field development plans intended to maximize the market value of the acquired assets with capital funding provided jointly.
“Hillcrest is pleased to have Xstate as a strategic partner” Don Currie Hillcrest CEO states “Xstate’s management team has a proven track record acquiring, developing and exploiting oil and gas assets world- wide. Xstate’s ability to provide a wider audience and access to equity funding for jointly pursued projects is a key component of the Alliance. Hillcrest and Xstate are aligned in their strategic objectives for creating shareholder value. Both companies are focused on acquiring, developing and delivering the value potential from conventional oil and gas assets with material upside. Aligning the companies makes the collective capital, management and operational efforts much more efficient and opens the opportunity for Hillcrest to build effective and efficient core company operating capability based on larger operations than are currently available to Hillcrest .”
“It is vitally important when working in North America for joint venture interests to be aligned”. Cosimo Damiano CEO Xstate explained. “Xstate will have the opportunity to work with an experienced management team, who is connected to sophisticated financial investors. The joint venture will benefit from each Partners management teams past activities in North America; scaled balance sheet capacity to access larger field acquisitions, providing economies of scale in operating costs and production operations”.
The strategic Alliance is based on mutual cooperation and assistance in order to support the growth of the respective Partners onshore North America. Both Hillcrest and Xstate intend that the Alliance will be the primary investment vehicle for material investments by either Party in the Canadian and USA oil and gas sector. Hillcrest will support future investment by Xstate and Xstate will support future investments made by Hillcrest in onshore North America projects. The Parties will include each other in investment opportunities where it is in the best interest of both Companies shareholders as a whole.
The Board of Hillcrest welcomes the formalization of the Strategic Alliance with Xstate that secures collective future growth opportunities.
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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.
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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.