About the Company
Hillcrest Resources Ltd is currently focused on oil and gas exploration and production in onshore basins of the United States. The Company produces oil in Newton County and Polk County, Texas. Natural gas is also produced in the Hartburg project in Newton County, Texas.
Newton County production of oil and natural gas is from the Company’s Donner #1 and Donner #2 wells. Donner #1 was a new field discovery and was put on production in August of 2010. Donner #2, an offset well to Donner #1 began oil production in August of 2011 and was subsequently converted to a natural gas producer in the 2nd quarter of 2012 to produce gas from a deeper zone that would otherwise have been lost due to lease expirations. Hillcrest Resources Ltd holds the largest working interest in both wells with a 30% working interest in Donner #1 and a 48% working interest, before payout of exploration, drilling and completion costs, of Donner #2. The Company owns 36% working interest after payout of costs in Donner #2. Current production net to the Company at Hartburg field is approximately 27 boepd. The Company has plans to drill at least two additional wells at Hartburg field during the year.
Hillcrest Resources Ltd also owns a 30% working interest in approximately 400 acres within the Livingston Field located in Polk County, Texas. The Livingstone field, produces oil and gas at depths ranging from 2,100ft to 6,600ft with existing production at approximately 3,600ft. Current production, net to the Company, is approximately 6 bopd with additional recompletion opportunities on the horizon.
The Company has also leased over 26,000 acres in Teton and Pondera Counties, Montana. The acreage is considered to be part of the emerging Alberta Basin Bakken trend. There a number of companies with exploration projects currently underway or being considered in the Basin. Hillcrest Resources Ltd. is monitoring the significant area activity and may proceed with development alone or through a joint venture at a later date.
Hillcrest Resources Ltd. is attempting to grow corporate value through exploration of oil and gas properties throughout the United States and possibly Canada. The business model will be focused on exploration and development rather than purchase of existing oil and gas production.