Hydrocarb Energy Corporation (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."