Gulf of Mexico

Hillcrest Petroleum, through its wholly owned subsidiary Hillcrest GOM Inc., owns a portfolio of non-operated oil & gas properties in the Gulf of Mexico, within the shallow water "shelf" region offshore Louisiana. These comprise 10 leases containing 5 producing fields. Working interests in these leases range from approximately 4% to 26%.

The fields are relatively mature, although additional infield drilling and recompletion opportunities have been identified in the Eugene Island 32 Field. Additional exploration potential also exists in the largely undrilled deeper section within the shallow water Gulf of Mexico.

Eugene Island 32

The majority of the Hillcrest oil production from the Gulf of Mexico assets is sourced from the Eugene Island 32 Field. Production is from Lower Pliocene and Upper Miocene aged conventional sandstone reservoirs contained within a large, faulted anticline structure. There are multiple proven reservoirs within the field area, occurring at vertical drilling depths of approximately 6,000 to 11,000 feet. Water depth at the Eugene Island Field is approximately 10-12 feet.

A number of infield drilling and behind pipe (recompletion or work-over) opportunities have been identified within the field, and the Company is working with the other working interest holders to optimize the development of these additional opportunities.

Other Producing Fields

Hillcrest also produces relatively small volumes of oil and gas from the Ship Shoal 271 Field, the West Cameron 310 Field, the West Cameron 498 Field and the West Delta 64 Field.