Hydrocarb Energy Announces Significant Increases in Oil and Gas Reserves

HOUSTON, Sept. 17, 2014 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB: HECC) recently reported substantial increases to its PV-10 oil and gas reserves. The company also recently commenced operations to upgrade the infrastructure and perform workovers at its oil and gas producing assets in Galveston Bay, Texas. A summary of these recent key operational developments follows:

Operations Update

Operations to upgrade offshore and onshore facilities and stabilize oil and gas production rates include the replacement of key components in the production stream, allowing a more constant rate of oil and gas production by minimizing equipment-related down time. The next phase of improvements to facilities is winterizing select units to reduce cold weather related production delays. Work has begun on the first package of 14 wells to restore or increase oil and gas production from the Miocene age Frio formation reservoirs.  The work will be accomplished in several phases over the next few months.

Reserves Update

Hydrocarb Energy Corporation reported 2014 year-end proved reserves of 1,021,790 net barrels oil and 12,031MMCF net gas, an oil increase of 55.69 percent over year-end 2013. Hydrocarb's Galveston Bay assets now comprise 100 percent of the Company's total proved reserves and contributed 100 percent of Hydrocarb's 2013-reported production. For the year, the Company grew our PV-10 value by over 100% percent, from $24.5 million to $51.5 million, driven by these re-evaluations and price improvements. In the latter part of 2014 and 2015, Hydrocarb expects to continue to increase production and improve revenues through infrastructure improvements and to pursue further select testing of the Frio formation reservoirs as mentioned above.

Financial Update

In mid-August Hydrocarb Energy Corporation announced the closing of a new $5,500,000 term debt placement from lending entities managed by Shadow Tree Capital Management LLC and Quintium Advisors LLC. The proceeds of the new debt facility will be used primarily to fund infrastructure improvements in Hydrocarb's Galveston Bay oil and gas producing assets.

About Hydrocarb Energy

Hydrocarb Energy Corporation is a publicly-traded Domestic and International Energy Exploration and Production Company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa, production in Galveston Bay, and Oil Field Services in the United Arab Emirates, we maintain offices in Houston, Texas, Abu Dhabi, UAE and Windhoek, Namibia. For further information: www.hydrocarb.com.

Forward-looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which contain words such as "expect," "believe" or "plan," by their nature address matters that are, to different degrees, uncertain. These uncertainties may cause actual future events to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

For further information, please contact:

PCG Advisory Group, LLC
Scott Powell, Managing Director
Tel: +1-646-780-8850
Email: [email protected]
www.pcgadvisory.com 

SOURCE Hydrocarb Energy Corporation