Hillcrest Petroleum begins oil production at West Hazel
2019-01-17 13:22 MT - News Release
Mr. Donald Currie reports
SASKATCHEWAN OIL PRODUCTION OPERATIONS UPDATE
Hillcrest Petroleum Ltd.'s upgraded West Hazel production facility is now in operation. Production started from two wells on Jan. 13, 2019, and Jan. 15, 2019, respectively. Initial fluid production rates from both wells are as expected. Production from the remaining two wells will be brought on line after workovers on these wells are completed.
The company's previously announced plans to restore production from the West Hazel field has been completed on budget. Oil production from the four wells is expected to stabilize between 150 barrels per day to 250 barrels per day, with potential to increase to 500 barrels per day through further, previously unidentified field development activities, including well recompletions and development drilling. Production facilities, which include an integrated water injection system, have been upgraded to increase the fluid handling capacity in anticipation of higher production volumes. Increased capacity through production facility upgrades are expected to substantially reduce operating costs per barrel of oil as production increases with field development.
As previously announced, under the terms of its joint venture agreement on the West Hazel property, the company will provide 100 per cent of reactivation costs to return the field to production to earn a 75-per-cent working interest, reverting to 50 per cent after recovery of reactivation costs.
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