LONDON (Alliance News) - Highlands Natural Resources PLC said Thursday that it is making progress towards its first possible revenue stream via commercialising its fracking technology, while also continuing oil and gas development activities.
Highlands reported a pretax loss of GBP1.5 million for the six months to September 30, widened from GBP937,707 in the same period in 2015. The company currently produces no revenue.
The company said that its DT Ultravert technology, which it believes could be used as a re-fracking agent to increase production from already stimulated wells, is being tested by Schlumberger Ltd and CalFrac Well Services Corp.
Highlands has also acquired a natural gas project in Montana which it says has potential to supply helium, and began drilling and de-watering operations in September 2016. The company said the latest indications are that de-watering may require three to six months.
"Looking ahead, the funds raised during and just after the period provide the group with sufficient working capital for its immediate needs. Furthermore, as announced on 26 October 2016, the group has entered into its first potentially revenue generating agreement for the use of DT Ultravert. Whilst this involves the group funding the initial work, if successful the project should provide a positive revenue stream for Highlands in the near future, at which point the board would plan to expand that arrangement and business model," said Highlands.
Shares in Highlands Natural Resources were down 3.0% at 34.81 pence Thursday morning.
By Adam Clark; adamclark@alliancenews.com
Copyright 2016 Alliance News Limited. All Rights Reserved.
