Hillcrest Petroleum Ltd (TSXV:HRH) (OTCQB:HLRTF) (FRA:7HI.F) said a short-lateral oil well was successfully drilled from an existing well site at its West Hazel oil field in Saskatchewan and is now in production.
The energy firm said early fluid production numbers are positive with the well producing an average of around 100 barrels of oil per day over the first five days, adding that production performance from heavy oil reservoirs such as those in West Hazel can require a period of 3-4 weeks before stabilized numbers will be available. Hillcrest also said it utilized available cash on hand to complete the drilling operation.
READ: Hillcrest Petroleum to trade on CSE; alter its name to Hillcrest Energy Technologies Ltd
Meanwhile, as part of its commitment to responsible operations, Hillcrest said it is planning to proactively conduct field remediation activities significantly earlier than required under current regulations which it said will reduce its long-term abandonment liability and underscore the wider ongoing objective of reducing the company’s environmental footprint.
The firm also said it will use cash flows from the new and existing wells to accelerate its transition from fossil fuels to the development of clean Energy Technologies.
“Our pivot from traditional oil and gas production toward a more diversified business model that transforms earnings into investment into clean energy technologies is aggressive and important. We intend to maximize revenue from the field which is providing seed funding to scale-up activity and focus on creating transformative energy technologies” Hillcrest chief executive Don Currie said in a statement.
The firm also said it will commence trading on the Canadian Securities Exchange on March 31 under the ticker symbol ‘HEAT’ with its name change to Hillcrest Energy Technologies expected to become effective within ten trading days.
“The entire Hillcrest team has been focused on laying the foundation for this new chapter of the company. Balancing short-term revenue maximization with long-term global market clean energy technology expansion, is the path we believe will potentially maximize corporate and by extension, shareholder value”, Currie said.
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