logo-loader
Hillcrest Petroleum Ltd

Hillcrest Petroleum receives loan commitments for up to C$900,000

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan

Barrels of oil in a row
The reactivation is expected to cost around C$750,000

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) announced Friday that it received loan commitments for gross proceeds of up to C$900,000.

The terms allow the loans to be converted into common shares of the company “at a price equal to market price for the first 12 months and the greater of the market price and $0.10 per share” after that, explained the company.

The loans are set to mature on the sale of certain company assets, the date of conversion or two years from the date of issuance, whichever should happen first.

The interest rate sits at 15% per year and will be paid quarterly until the loans are converted or repaid.

Proceeds stemming from the loan financing will go toward project costs related to the assets and wells in Saskatchewan Joint Venture.

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan, expecting the reactivation costs to be around C$750,000.

Before being shuttered by its previous owner in 2015, West Hazel field generated over 200 barrels of oil per day.

Initial oil output is expected to be between 150 and 250 barrels per day, but may have the potential to increase to 500 barrels per day as development continues.

Shares of the Vancouver-based company were down 25% to C$0.03 by Friday’s close.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

Quick facts: Hillcrest Petroleum Ltd

Price: $0.03

Market: TSX-V
Market Cap: $2.74 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

Watch

Hillcrest Petroleum teams up with WestCan for a very unique partnership

Hillcrest Petroleum (CVE: HRH) CEO Don Currie and CEO of WestCan, JC Cunningham joined Steve Darling from Proactive Investors Vancouver to talk about the two companies signing a deal to work together. Curries telling Proactive what this means for Hillcrest and how this deal is just the...

2 weeks, 5 days ago

2 min read