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Hillcrest Petroleum plans to recommence oil sales in June

Published: 09:05 07 May 2020 EDT

Hillcrest Petroleum Ltd - Hillcrest Petroleum to recommence oil sales in June
Hillcrest said it believes it can profitably produce oil at current prices

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) has announced that it is planning to restart production from its West Hazel assets in Saskatchewan and commence oil sales at the beginning of June.

The company said it has nominated firm oil sale volumes for June and intends to test spot sales during May, subject to oil pricing and export capacity.

READ: Hillcrest Petroleum set to become joint venture partner in clean-tech opportunity deal

Hillcrest added that it has successfully reduced operating expenses by around 25% by electrifying field operations in April, providing it with lower production costs than many competing oil producers and allowing it to resume production earlier than others.

The firm said it believes it can profitably produce oil at current prices, subject to the pricing for the Western Canadian Select marker price remaining in the current range.

In a statement, Don Currie, Hillcrest chief executive, said: "We are delighted to be confident to restart production and resume cash flowing operations so soon during these volatile times, with production operations being suspended for less than 30 days.

"Our low production costs are a credit to our field staff and management, who completed the field electrification project only a few days before shutting in, giving us the competitive cost advantage to be able to start production before many others." 

"Revenue from sales will assist the company to maintain good working relationships with our local service providers and to potentially accelerate plans associated with our energy transition strategy, including our recently announced plans to monetize US Licensing agreements through an incorporated joint venture. We will continue to provide updates as developments occur," he added.

Contact the author Calum Muirhead at calum@proactiveinvestors.com

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