news July 30, 2020 -TheNewswire -Vancouver, B.C.- Hillcrest Petroleum Ltd.(the "Company" or "Hillcrest") (TSXV:HRH) (OTC:HLRTF), is pleased to announce it will increase its working interest percentage in the West Hazel field to 100% by acquiring the remaining working interest its Joint Venture Partner. The agreement in principle is effective July 29thand is subject to approval by the TSX Venture Exchange.
Hillcrest is acquiring the joint venture partner's interest in exchange for three million (3,000,000) Hillcrest common shares, representing a CDN $150,000 value. 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 JV partner's interest was 25% before payout and 50% after payout.
"This is an important milestone in Hillcrest's West Hazel development plans." states Don Currie, Hillcrest CEO "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. 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."