Hillcrest Petroleum Ltd. is now producing from a short-lateral oil well drilled from an existing well site at West Hazel oil field in Saskatchewan.
Production has been about 100 b/d of oil for the first 5 days. Heavy oil reservoirs such as those in West Hazel can require a period of 3-4 weeks before stabilizing production, the company said.
Current field development comprises four oil producers (including the well just drilled), a water disposal well, and production facilities with integrated water treatment and injection systems.
Hillcrest is planning to proactively conduct field remediation activities earlier than required under current regulations. Field remediation will reduce the company’s term abandonment liability and reduce its environmental footprint.
Hillcrest used available cash on hand to complete this drilling operation. The company will use cash flows from new and existing wells to accelerate its transition from fossil fuels to development of clean energy technologies.
Hillcrest has 100% ownership in West Hazel.