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Hillcrest Petroleum gushes higher as West Hazel field crude output impresses

As reported previously, crude output started from two wells at the field on January 13 and January 15, respectively, this year

Nodding donkeys
Production started at the field in January this year

Hillcrest Petroleum Ltd (CVE:HRH) shares gushed higher Thursday as the firm said it was encouraged by early production stats at its West Hazel facility in Saskatchewan, Canada.

As reported previously, crude output started from two wells at the field on January 13 and January 15, respectively, this year.

Initial fluid production rates from both wells were as expected, and a third well was brought on line in early March when weather conditions softened after a record-breaking cold snap.

READ: Hillcrest Petroleum seals deal with Australian oil and gas firm

Production in the last five days from the three wells averaged 150 barrels per day (bpd), which meets lower production estimates the company published in previous releases, although those estimates considered production from all four wells.

Hillcrest is trying to lift output further by upgrading the injector well, which if successful, could lift output from the three current wells.

A sustained production rate is expected to take another three to four weeks to achieve.

Hillcrest will move to start production from the fourth well once current efforts have been completed, results reviewed, and a rig is available, it said.

Under the terms of a joint venture for West Hazel, Hillcrest provides 100% of reactivation costs to return the field to production to earn a 75% working interest, which reverts to 50% after the recovery of reactivation costs.

Shares gushed 12.5% higher in Toronto to stand at $0.045.

Contact Giles at [email protected]

Follow him on Twitter@Gile74

Quick facts: Hillcrest Petroleum Ltd

Price: 0.03 CAD

TSX-V:HRH
Market: TSX-V
Market Cap: $3.71 m
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