Hillcrest Signs Letter Of Intent to Purchase Producing Oil and Gas Company
VANCOUVER, B.C. / TNW-ACCESSWIRE / November 4, 2014 / Hillcrest Resources Ltd. (the "Company" or Hillcrest") (TSX.V: HRH US Symbol HLRTF ) is pleased to announce that the Company has signed a letter of intent (the "LOI") to acquire the Texas domiciled subsidiary ("SubCo.") of an international oil and gas company. The acquisition includes all assets, property and commitments of SubCo. as well as its production revenues from its operating oil wells, which are currently producing an average of 270 gross barrels of oil equivalent per day. Gross annual revenue of SubCo. for the twelve months ending 31st December 2014 is anticipated to be over US $5,000,000.
The Parties are working towards the completion and execution of definitive agreements to include all corporate warranties, commitments and responsibilities between the parties with closing expected on or before December 19th, 2014. All closing terms and conditions as well as purchase and associated costs will be publicly disclosed upon the signing of the definitive agreements which is expected on or before November 30th, 2014.
"This potential acquisition is expected to be a substantial, accretive opportunity for Hillcrest" states Don Currie, the Company's CEO and Chairman. "The current daily production of SubCo. as well as near term expansion opportunities to drill and complete additional wells in 2015 within the license interests owned by SubCo. has the potential to add revenues to Hillcrest of up to six times our current revenue. This acquisition would provide an immediate increase to total Company revenues and will be complementary to our current oil and gas revenues being generated from our Newton County, Texas wells."
The Company also wishes to immediately announce a non-brokered private placement (the "Private Placement") consisting of 10 million units of Hillcrest Resources (the "Units") at a purchase price of $0.05 per Unit (the "Offering Price"), for aggregate gross proceeds in the amount of approximately $500,000. Each Unit will consist of one common share of Hillcrest (a "Unit Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"), each full Warrant being exercisable to acquire one common share of Hillcrest at a purchase price of $0.08 for a period of 12 months following the closing date. Proceeds from the Private Placement will be used towards the potential acquisition of SubCo., further development of the Company's Newton County assets, corporate commitments, and for general corporate purposes.
For more information on Hillcrest Resources Ltd., contact Donald Currie toll free at 1-866-609-0006 or visit the Company's website at www.hillcrestresources.com
On behalf of the Board of Directors
Donald Currie
Chairman, Chief Executive Officer and Director
FORWARD LOOKING STATEMENT HERE
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2014 TheNewswire - All rights reserved.
