Hillcrest Petroleum Ltd. (CVE:HRH) (OTCMKTS:HLRTF) has announced that it will increase its working interest percentage in the West Hazel field in Saskatchewan to 100% by acquiring the remaining working interest its joint venture partner.
The company said it is acquiring the joint venture partner's interest in exchange for 3 million Hillcrest common shares, representing a C$150,000 value.
READ: Hillcrest Petroleum launches $1 million private placement to fund expansion of West Hazel oil asset
As previously announced, Hillcrest paid 100% of costs to re-activate production from the field, receiving 75% of revenues until re-activation costs are recovered and reverting to 50% thereafter.
The joint venture partner's interest was 25% before the payout and 50% after the payout. The agreement in principle is effective July 29 and is subject to approval by the TSX Venture Exchange.
In a statement, Don Currie, Hillcrest CEO said: "This is an important milestone in Hillcrest's West Hazel development plans. Hillcrest has completed various technical reviews which allows us to proceed with field development activities to increase production and revenues and maximize reserves recovery. We estimate the field production could be increased to more than 500 barrels per day."
He added: “Hillcrest has been offered terms for a $5,000,000 debt facility to fund activities to develop the field to its full potential, subject to Hillcrest acquiring 100% working interest. We appreciate the discussions and agreement with our JV partner and thank him for his involvement to date. The Company will update our shareholders as expansion plans of the field materialize."
Hillcrest is a Canadian oil and gas producer, which to complement its oil and gas production, is pursuing opportunities related to clean energy technology with potential to substantially reduce greenhouse gas emissions.
It holds multiple wells on two projects in the province of Saskatchewan, and intends to add a green energy asset to its energy production portfolio through its 50% ownership in ALSET Innovations Inc, a technology partnership with rights to exclusively license and market innovative efficient power generation and electric motor technologies in the USA and to exclusively market this technology in the EU.
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