Hydrocarb Energy Estimates 270% Oil and 498% Gas increase in March over March Production
2015 Development Program Aims to triple proved reserves and production
Apr 15, 2015, 09:00 ET
HOUSTON, April 15, 2015 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB:HECC) announced that March 2015 production was approximately 10,876 barrels of oil produced together with 27,938 MCF gas produced and sold compared to March 2014 barrels produced of approximately 4,022 barrels oil and 5,602 MCF of gas. This estimates an approximate increase of 270% for oil and 498% in gas. The company expects its production to continue to rise significantly over the next few months as currently shut-in production continues to come online.
The company is now focusing on the 2015 Development Program, a strategy targeted to fully develop its petroleum reserves and production. In recent months, as oil prices were declining rapidly, the company recognized the opportunity, coupled with its broad technical expertise, to fully develop the rest of its potential in its producing assets located in Galveston Bay, Texas. Due to the conventional nature of its production and development drilling, management believes that successful development would provide the opportunity to greatly enhance cash flow and realize notable profits at current oil prices.
To facilitate its 2015 Development Program, the company is actively seeking a large development loan facility which if culminated will take out the August 2014 senior bridge financing together with all recently initiated short term strategic convertible debt.
When asked to comment, Kent Watts, Hydrocarb's Chief Executive Officer said, "We are working diligently with major oil and gas lenders. It appears that having the capital to drill and complete our best development wells has the potential to triple production over what we already have online and still coming online over the next couple of months. This production increase can be achieved with very little increase in lease operating expenses."
He went on to say, "Once we develop our known reserves, we believe that we also have potential in deeper yet to be drilled zones within our 18,000+ Galveston Bay acres held by production. It will be very interesting for management to be in the position to focus on that additive potential."
About Hydrocarb: 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 and domestic production in Galveston Bay, we maintain offices in Houston, Texas, and Windhoek, Namibia.
Forward-looking Statements
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Forward-looking statements are subject to risks inherent in natural gas and oil drilling and production activities, including risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; delays in receipt of drilling permits; risks with respect to natural gas and oil prices, a material decline which could cause the company to delay or suspend planned drilling operations or reduce production levels; risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in natural gas and oil prices; risks relating to unexpected adverse developments in the status of properties; risks relating to the absence or delay in receipt of government approvals or fourth party consents; and other risks described in the company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the company. The company's SEC filings are available at http://www.sec.gov.
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SOURCE Hydrocarb Energy Corporation