The junior oiler says it has submitted licence documents to the provincial regulator, which are required to begin the redevelopment.
Regulatory approval is expected before the end of April, the firm said.
"The project will provide near-term cash flow which may increase if and when we undertake further development operations," said Don Currie, Hillcrest's chief executive.
"The field was producing over 300 bopd (barrels of oil per day) when the former operators suspended production due to cyclically low oil prices.
"Hillcrest is confident production can be restored to previous levels after which further development will be considered.
"The company has a majority working interest in the field which was obtained at a very attractive cost level.
"Current commodity prices along with reduced operating expenses are expected to enhance the profitability of the Field. In addition to West Hazel, Hillcrest continues to review and pursue other Western Canada based opportunities and will inform our shareholders as material acquisitions or partnerships occur."
Both behind-pipe re-completions as well as in-fill drilling potential have been identified, and Hillcrest is planning to pursue production increases from within the field during the third and fourth quarters of 2018, it said.
Under the terms for the field, Hillcrest, as operator, will earn up to a 75% working interest (WI) by contributing technical expertise and funding to restore production.
Hillcrest's WI will revert to 50% once it has recovered all production restoration costs from the production revenues.
Hillcrest has arranged third party funding for the project, which will be non-dilutive Hillcrest shareholders, and secured by the company and its assets.
Additional infield development opportunities, such as well re-completions or development drilling is expected to be financed through cash flow from the assets.
Hillcrest shares in Toronto were unchanged at C$0.05.