Business
Highwood Oil Company Ltd. Announces Successful Fourth Quarter 2019 Clearwater Drilling Results and the Strategic Divestiture of Non-Core Red Earth Legacy Property
Highwood Oil Company Ltd. Announces Successful Fourth Quarter 2019 Clearwater Drilling Res...
About this update from Highwood Asset Management Ltd
[{"type":"text","content":"\n\n\n\nHighwood Oil Company Ltd. Announces Successful Fourth Quarter 2019 Clearwater Drilling Results and the Strategic Divestiture of Non-Core Red Earth Legacy Property\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Feb. 18, 2020\n\n\n\n/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/\n CALGARY, Feb. 18, 2020 /CNW/ - Highwood Oil Company Ltd. (\"Highwood\" or the \"Company\") (TSXV:HOCL) is pleased to announce successful drilling results from its Q4 2019 Clearwater drilling program.  \n\n \n \n\n \nAdditionally, the Company is also pleased to announce that it has entered into an agreement with an arm's-length private oil and gas exploration and production company (the \"Purchaser\") to divest of the majority of the Company's Red Earth asset, comprised of cash of $8.0 million and equity consideration of 10% of the Purchaser's outstanding common shares (the \"Divestiture\"). Under the terms of the Divestiture, Highwood is entitled to reserve against the Red Earth assets an overriding royalty of 5%. Current production from the subject Red Earth field is approximately 950 bbl/d of oil.   \nCurrent net Company production is approximately 1,000 bbl/d of oil pro forma the Red Earth Divestiture.   \nQ4 2019 Drilling Results and 2020 Activity \nDrilled 5 wells (2.5 net) in the Clearwater play at Nipisi during the fourth quarter of 2019. The drilling activity included delineation of the company's 24,320 acre gross Nipisi land position, further validating additional Nipisi drilling inventory. All wells are on production and meeting and/or exceeding the production expectations of the Company. Since the Company began its Clearwater development program in the fourth quarter of 2018, it has drilled 14 wells (7 net) to the end of 2019. Current Clearwater production is 1,500 bbl/d of oil (750 bbl/d net). The Company's 2020 drilling program is underway, with further cashflow generation a focus at Nipisi while delineating additional acreage. Current operations include drilli...