viewHillcrest Petroleum Ltd

Hillcrest Petroleum seals deal with Australian oil and gas firm

Hillcrest said it signed a memorandum of understanding with Xstate Resources Ltd to jointly pursue oil and gas acquisitions in Canada and the US

oil rig
Under the deal, Xstate and Hillcrest will offer participation in North American acquisition opportunities to each other

Hillcrest Petroleum Ltd (CVE:HRH) said Monday it has inked a memorandum of understanding with Xstate Resources Ltd (ASX:XST), a publicly listed Australian oil and gas company, to pursue onshore oil and gas acquisitions in Canada and the United States. 

Hillcrest is reviewing potential acquisition and development targets in Western Canada. Xstate has been participating in and is reviewing the potential acquisition of various US oil and gas projects.

"Xstate's management team has a proven track record acquiring, developing and exploiting oil and gas assets worldwide. Xstate's ability to provide a wider audience and access to equity funding for jointly pursued projects is a key component of the Alliance," said Hillcrest's chief executive officer, Don Currie, in a statement. 

READ: Hillcrest Petroleum kicks off oil production at West Hazel field after upgrade

According to Currie, Hillcrest and Xstate are aligned in their strategic objectives for creating shareholder value and both companies are focused on acquiring, developing and delivering the value potential from conventional oil and gas assets.

"Aligning the companies makes the collective capital, management and operational efforts much more efficient and opens the opportunity for Hillcrest to build effective and efficient core company operating capability based on larger operations than are currently available to Hillcrest," said Currie. 

Under the deal, Xstate and Hillcrest will offer participation in North American acquisition opportunities to each other and if either company wants to pursue one or more acquisition opportunity, the originating company will facilitate the acquisition on behalf of both, may operate the acquired assets under joint venture agreements and implement field development plans intended to maximize the market value of the acquired assets with capital funding provided jointly.

"It is vitally important when working in North America for joint venture interests to be aligned," said Xstate chief executive officer Cosimo Damiano in a statement. "Xstate will have the opportunity to work with an experienced management team, who is connected to sophisticated financial investors. The joint venture will benefit from each partners management teams past activities in North America; scaled balance sheet capacity to access larger field acquisitions, providing economies of scale in operating costs and production operations".

Shares of Hillcrest Petroleum were at C$0.05 on Monday. 



Contact Katie Lewis at [email protected]
Follow her on Twitter: @kelewis

Quick facts: Hillcrest Petroleum Ltd

Price: 0.09 CAD

Market: TSX-V
Market Cap: $11.13 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


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...



Hillcrest Petroleum "sticking a flag" in Louisiana

Don Currie, CEO of Hillcrest Petroleum (CVE:HRH, OTCQB:HLRTF), admits the Texas and Gulf of Mexico-focused oil producer has had to make some tough decisions in response to the tougher environment for energy companies, but it is not completely going into its shell. Targeting producing assets...

on 14/9/16

2 min read