Hartburg Project Area


Hartburg Project Location

Hillcrest Petroleum, together with its wholly owned subsidiary Hillcrest Exploration Ltd., owns a portfolio of oil and gas leases located in Newton County, East Texas. The leases comprise 288 gross acres of developed lands and 762 gross acres of undeveloped lands.

The Company has to date participated in the drilling, completion and tie-in of four wells within these leases, which lie within the Northwest Hartburg Field area. Hillcrest is the largest working interest owner in the wells, and field operations are managed by a local contract operating company.

The primary reservoir targets for the Company in this area are the Upper Hackberry sand, which tends to be oil bearing, and the Nonion Struma sand, which is primarily gas-bearing with small volumes of hydrocarbon liquids. Both are conventional reservoirs with high quality porosity and permeability characteristics. Total vertical drilling depth to evaluate these reservoirs is approximately 7500 feet. There is also deeper exploration potential within the lease area that the company has identified but has yet to evaluate via drilling.

Drilling and evaluation operations for the primary reservoir targets are typically completed in less than two weeks, and successful wells are tied in for production operations rapidly as the Company takes advantage of the abundant infrastructure available in the area.

The Donner #1 well produces oil under natural flow from the main pay section in the area, the Upper Hackberry sand.

The Donner #2 well produces oil and gas under natural flow from a slightly shallower member of the Upper Hackberry sand section.

The Brown #1 well produces gas under natural flow from the Nonion Struma sand.

The Donner #4 well has been a gas producing well from the Nonion Struma sand, but is awaiting a clean-up and recompletion operation before re-commencing production.

The Company has identified multiple potential additional drilling locations on the leases, and is considering the purchase of 3D seismic to firm up these additional prospects.