Proactive Investors - Run By Investors For Investors

Hillcrest Petroleum receives loan commitments for up to C$900,000

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan
Barrels of oil in a row
The reactivation is expected to cost around C$750,000

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) announced Friday that it received loan commitments for gross proceeds of up to C$900,000.

The terms allow the loans to be converted into common shares of the company “at a price equal to market price for the first 12 months and the greater of the market price and $0.10 per share” after that, explained the company.

The loans are set to mature on the sale of certain company assets, the date of conversion or two years from the date of issuance, whichever should happen first.

The interest rate sits at 15% per year and will be paid quarterly until the loans are converted or repaid.

Proceeds stemming from the loan financing will go toward project costs related to the assets and wells in Saskatchewan Joint Venture.

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan, expecting the reactivation costs to be around C$750,000.

Before being shuttered by its previous owner in 2015, West Hazel field generated over 200 barrels of oil per day.

Initial oil output is expected to be between 150 and 250 barrels per day, but may have the potential to increase to 500 barrels per day as development continues.

Shares of the Vancouver-based company were down 25% to C$0.03 by Friday’s close.


Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

View full HRH profile View Profile

Hillcrest Petroleum Ltd Timeline

Related Articles

oil rig
May 22 2019
Sidetrack at West Rutavi 16a flowed at 1,100 barrels per day against target of 650bopd for two wells
Oil well
February 13 2019
TLP-103C’s upper reservoirs will be targeted by blending the R2 and the Mengo intervals through a double completion in the well.
Oil field
March 06 2019
The Woodrush field covers 13,000 acres and lies 65 miles north of oil and gas hub Fort St. John
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use