RE:hillcrest to recommence oil sales Hillcrest Petroleum plans to restart oil sales in June
2020-05-07 10:08 MT - News Release
Mr. Donald Currie reports
HILLCREST TO RECOMMENCE OIL SALES
Hillcrest Petroleum Ltd. intends to restart production from the Saskatchewan-based West Hazel assets and commence oil sales at the beginning of June.
Hillcrest has nominated firm oil sale volumes for June and intends to test spot sales during May, subject to oil pricing and oil export capacity.
Hillcrest successfully reduced operating expenses by approximately 25% by electrifying field operations in April, providing Hillcrest with lower production costs than many competing oil producers, allowing the Company to resume production earlier than others. Hillcrest believes the Company can profitably produce oil at current prices, subject to the pricing for the Western Canadian Select marker price remaining in the current range.
"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." stated Don Currie, Hillcrest CEO "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."
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