LONDON (Alliance News) - Shares in Highlands Natural Resources PLC were up on Monday, after it said it has signed a licence agreement for the use of its DT Ultravert re-fracking technology with pressure-pumping provider Calfrac Well Services Corp.
Shares in Highlands Natural Resources were up 24% at 51.60 pence on Monday morning, having touched a high of 57.00p earlier, near to the stock's 52-week high of 58.50p.
Last year, Highlands bought a 75% interest in fracking technology DT Ultravert from Diversion Technologies. Highlands said on Monday that Calfrac has licensed the DT Ultravert technology on a shared exclusivity basis for use in connection with its commercial hydraulic fracturing operations, activities and services in seven US states.
The licence agreement has an initial term of two years, Highlands said, and will then automatically renew for consecutive one-year periods, unless terminated.
Highlands said it also has the exclusive right to market nitrogen gas to Calfrac at current market rates for all fracking operations using the DT Ultravert technology throughout the term of the licence agreement.
Calfrac said it will provide data to Highlands and Diversion which may be used to further develop the re-fracking technology, and both companies are entitled to a 2.0% royalty based on the revenue received by Calfrac from each operation using the technology during the term of the agreement, Highlands said.
"We are delighted to have entered into another licence agreement with a highly reputable oilfield services provider in the US and Canada," said Highlands Chief Executive Robert Price.
"Together with our agreement with Schlumberger NV, these agreements will help accelerate the market penetration, commercialisation and industry adoption of DT Ultravert, a technology we believe has the potential to transform and significantly reduce the costs associated with unconventional exploration and production via re-fracking using a diverter technology, particularly in the current oil price environment," Price added.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
