Sign up
Oil Capital

Hillcrest Petroleum receives loan commitments for up to C$900,000

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan
Barrels of oil in a row
The reactivation is expected to cost around C$750,000

Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) announced Friday that it received loan commitments for gross proceeds of up to C$900,000.

The terms allow the loans to be converted into common shares of the company “at a price equal to market price for the first 12 months and the greater of the market price and $0.10 per share” after that, explained the company.

The loans are set to mature on the sale of certain company assets, the date of conversion or two years from the date of issuance, whichever should happen first.

The interest rate sits at 15% per year and will be paid quarterly until the loans are converted or repaid.

Proceeds stemming from the loan financing will go toward project costs related to the assets and wells in Saskatchewan Joint Venture.

The company announced in October that it was restarting oil production from the West Hazel oil field in Saskatchewan, expecting the reactivation costs to be around C$750,000.

Before being shuttered by its previous owner in 2015, West Hazel field generated over 200 barrels of oil per day.

Initial oil output is expected to be between 150 and 250 barrels per day, but may have the potential to increase to 500 barrels per day as development continues.

Shares of the Vancouver-based company were down 25% to C$0.03 by Friday’s close.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

View full HRH profile View Profile
View All

Related Articles

© oil Capital 2019

Oil Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed oil companies to interact with institutional and highly capitalised investors.
Headquartered in London, Oil Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.