Hillcrest Petroleum restarts production at West Hazel oil assets ahead of schedule

  • May 26, 2020
  • Oil Capital

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) announced Monday that production at its West Hazel oil assets in Saskatchewan has restarted two weeks ahead of schedule.

The Vancouver-based oil company said that the decision to accelerate production was based on the realized price of oil now being at profitable levels.

In addition to recommencing production at West Hazel, Hillcrest will also sell its oil inventory stored at the site, it said in a statement.

Daily oil output from four wells at West Hazel averaged around 115 barrels per day, with some days seeing over 200 barrels per day, in prior months.

Current oil production is profitable thanks to low cost field operating expenses resulting from a field electrification program Hillcrest recently undertook that reduced operating costs by around 25%. The program allowed Hillcrest to replace diesel-generated power with green electricity from the Saskatchewan power grid.

"Starting production earlier than expected with a trouble free start up, is a spectacular situation for Hillcrest," Don Currie, Hillcrest’s CEO said in a statement.

Revenue from oil sales gives the company stability and allows it to accelerate plans associated with its energy transition strategy, Currie told investors, including a recently announced plan to monetize US and European Union Licensing agreements through an incorporated joint venture.

The Canadian oil producer intends to license US patented clean energy technologies in the US and European Union.

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