HOUSTON, July 20, 2015 /PRNewswire/ -- Hydrocarb Energy Corporation (OTCQB: HECC) announced that its new gas compression facility and related maintenance has been substantially completed and the company is now turning up production that has been mostly shut-in since the end of 2014. At that time the company realized salt water disposal and gas compression capacity limits that effectively shut down about 40% of its production. As of now all capacity issues have been resolved and the company plans to report substantially increased production results in the near future.
Hydrocarb is now focusing on the 2015 Development Program, a strategy targeted to shift all of its proved reserves into full production. By fully developing its producing assets it is believed that the company can again double its production over the newly turned up level. The company's production and development operations are conventional with fixed and sunk costs on production facilities that provide economies of scale, supporting up to 25,000 barrels per day of production. With any newly developed production, variable operating costs are expected to be a low percentage compared to the percentage production increase. As a result, all newly developed production revenue would be expected to dramatically increase positive net cash flow and income, even at current oil prices.
To support its development program, the company is raising capital to replace the senior bridge financing together with all short term strategic convertible debt. Successfully raising this equity will provide Hydrocarb with the ability to fully develop its Galveston Bay assets and help to focus on its 5.2 million acre concession in Namibia, Africa.
Charles Dommer, the Company's Chief Operating Officer commented, "While we are working to finance our development upside, opportunities are being presented to us whereby we can use our production infrastructure to earn participation in new drilling opportunities. We expect to have news about these new opportunities soon." He went on to say, "As we continue to develop our known reserves, there is real potential to find undiscovered reserves in deeper yet to be drilled zones within our 18,000+ Galveston Bay acres."
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. Hydrocarb focuses heavily on large reserve potential that can be explored and produced with conventional drilling and production technology. With exploration concessions in Africa and domestic production in Galveston Bay, we maintain offices in Houston, Texas, and Windhoek, Namibia.
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.
SOURCE Hydrocarb Energy Corporation