Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) has hit continuous oil production rates of more than 150 barrels of oil per day (bopd) from its operations at West Hazel, the company announced Tuesday.
Since the workover of the four wells at its Saskatchewan site in July, the oil cut rate has jumped, boosting production by roughly 70-80 bopd, even as total fluid from the wells has remained steady.
Since July, the oil cut has been estimated between 2.5% and 3% of total fluid, up from between 1.5% and 2% prior to the workover.
An increasingly favorable oil-to-water ratio could mean that the reservoir is moving back to its pre-2015 production levels of more than 200 bopd — before an extended shut-in period.
"I am very pleased with the current production performance from the field, with increasing oil cuts, that validates original planning estimates supporting our decision to move forward with the project late last year." CEO Don Currie said in a statement.
"The revenue provides a monthly profit and will assist in creating a healthier balance sheet. Hillcrest is reviewing where production can increase on our Saskatchewan asset and is continuing to pursue further acquisitions with our financial partners."
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