HILLCREST PROVIDES UPDATE AND ANNOUNCES CLOSING OF UNIT PRIVATE PLACEMENT

July 5, 2019

CSE: HEAT

 VANCOUVER, B.C. – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”) – As previously announced the upgraded West Hazel production facilities were commissioned in January, with initial production from two wells commencing concurrently. A third well was brought online in March, followed by the fourth well in early June. Resulting oil sales have delivered positive operating cash flow to the Company for the first time in over two years, with revenues from field operations covering all associated operating costs, including asset related finance charges. 

The wells are currently producing over 4,500 barrels per day total fluid, consisting of oil and water with oil representing 1.5% to 2% of total fluid. While the total fluid volumes are as expected, oil cuts have yet to stabilize and return to those observed prior to field shut-in in 2015, which delivered higher oil production rates. Heavy oil reservoirs such as those in West Hazel typically take some time to return to previous production levels after prolonged shut-in periods. The Company is reviewing options to maximize oil production from current wells through existing facilities and possibly with further upgrades. 

“We cannot overstate the importance these four wells have for Hillcrest” states Don Currie, CEO of Hillcrest Petroleum. “The revenues from production and sales are covering costs and showing a modest, but significant, monthly profit. The production sets a base for the Company to build on, which we are working toward in the third quarter. Hillcrest, with the support of its funding partners, continues to identify and evaluate potential producing asset acquisitions in the Western Canadian Sedimentary Basin. We will update shareholders as these activities progress.” 

In addition, the Company announces that it has closed a non-brokered private placement wherein the Company has issued 3,900,000 Units at $0.05 per Unit (the “Offering”) for gross proceeds of $195,000. Each Unit consisted of one common share in the capital of the Company (“Share”) plus one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional Share at a price of $0.10 until May 10, 2021. 

All securities issued in connection with this Offering will be subject to a statutory hold period ending on September 10, 2019 in accordance with applicable securities legislation. The net proceeds from the Offering will be used to advance the Company’s West Hazel oil project in Saskatchewan and for general working capital. The Company paid $1,629 in cash finder’s fees and issued 272,000 finder’s warrants in connection with the Offering. The finder’s warrants have the same terms as the Unit warrants. 

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. 

ON BEHALF OF THE BOARD

Donald Currie
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 

Cautionary Statement Regarding “Forward-Looking” Information 

Some of the statements contained in this press 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. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. 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. 

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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