leadf
logo-loader
viewHillcrest Petroleum Ltd

Hillcrest Petroleum stabilizes production from the West Hazel heavy oil field at nearly 150 barrels per day

The oil and gas firm added that a planned development well is expected to "significantly increase" oil production in the fourth quarter

Hillcrest Petroleum Ltd -
Hillcrest CEO Don Currie said the company was able to survive oil price volatilities by "paring down costs, increasing oil production and securing interests" in other opportunities in the "wider energy industry"

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) told shareholders on Thursday that it has stabilized production from the West Hazel heavy oil field in Saskatchewan at around 150 barrels per day from the beginning of August to the first week of September.

In a shareholder update, the Canadian oil and gas producer said production rates took some time to stabilize after being shut-in for a period during the second quarter due to pandemic-driven low oil prices.

“Current stable production rates are partly due to well work overs and maintenance, funded through the recent equity placement,” said the company.

READ: Hillcrest Petroleum hires New York based capital and advisory group to accelerate its business aims

The oil and gas firm added that a development well is expected to "significantly increase" oil production in the fourth quarter.

Hillcrest said that it received a letter of intent for a C$5 million convertible loan term sheet where the funds are to be funneled into expanding the West Hazel assets, including the development well. The loan note has a first draw of $500,000, with further draws available once 75% of the original tranche is repaid, or earlier if mutually agreed by the parties.

ALSET Innovation

To complement oil and gas production, Hillcrest is leveraging opportunities in clean energy technology with the potential to reduce greenhouse gas emissions through its 50% ownership in ALSET Innovations Inc. ALSET is a tech partnership with rights to exclusively license and market efficient power generation and electric motor technologies in the US and exclusively market the technology in the EU.

The company told shareholders it received conditional approval from the TSX.V for its previously announced ALSET licensing agreement. Hillcrest was granted a license for ALSET technology by Oropass Limited during the last week of August and expects final approval to follow.

Hillcrest said it is “excited” about the potential the “disruptive energy efficiency technology” offers across “a wide range of energy industry” applications. “Initial discussions are underway with the first of several parties whom have indicated interest in the technology,” said the company.

Firms showing interest in the technology include companies in “manufacturing or refitting electric vehicles, manufacturing or operating wind turbines,” and manufacturing or selling “electric generators and installing electrical vehicle charging stations,” said Hillcrest.

"Hillcrest was able to survive oil price volatilities and other challenges with the oil and gas sector by paring down costs, increasing oil production and securing interests in other forms of value and opportunity in the wider energy industry," said Hillcrest CEO Don Currie.

"The company was able to leverage oil production revenues with new opportunities such as the disruptive energy efficiency technology ALSET is licensing and marketing. This provides Hillcrest with a diversified platform from which to potentially add substantial company growth value.”

The Hillcrest boss said that in addition Hilcrest has been able to “retire all previously defaulted loans” and reduce outstanding payables to a combined value of over $1,200,000.

“The company is excited about the current path,” added Currie.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

Quick facts: Hillcrest Petroleum Ltd

Price: 0.07 CAD

TSX-V:HRH
Market: TSX-V
Market Cap: $11.33 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Hillcrest Petroleum Ltd named herein, including the promotion by the Company of Hillcrest Petroleum Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Hillcrest Petroleum plans to delist from TSX-V and will list on the Canadian...

Hillcrest Petroleum (CVE: HRH-OTC: HLRTF) CEO Don Currie joined Steve Darling from Proactive Vancouver with news the company is planning on applying to the TSX Venture Exchange to delist its common shares and the Company then will apply for listing on the Canadian Securities...

on 9/9/20

3 min read