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Just noticed that additions to significantly boost net reserves and resources in the next reporting period.
"Operations during and post the reporting period were primarily aimed at converting our significant 15.6 million barrels (MMbbl) of discovered oil resources into bankable reserves and future expected production revenues. Note that the 15.6 MMbbl currently excludes the expected upgraded of post-test Horse Hill Portland reserves, potential PEDL234 Portland gas and Kimmeridge reserves. We therefore expect these additions to significantly boost net reserves and resources in the next reporting period."
2.5 million trade at 2p now popped up on ADVFN.
Yep just checked the Rns again its clear that its for a SINGLE WELL but we do not know the recoverable rates. If my memory serves me right they are expected to be reasonable.
" Final Xodus report determines that the single HH-1 well "sees" a connected Portland oil in place ("OIP") of approximately 7-11 million barrels, a robustly viable commercial volume for a single well."
Picture on Weald Oilers now show horses at Horse Hill in the field next to the site.
In the Celtic mythology horses were considered good luck and were harbingers of good fortune.
Nice thought while we're waiting for positive news and hard data from the Kimmeridge.
"We now look forward to the forthcoming production testing campaign at Horse Hill, the first of a series of planned near continuous appraisal drilling and testing programmes designed to transform the CPR's recoverable resources into permanent production and reserves."
Not sure if the trades are an accurate reflection of buy sell ratio. My buy of 14,000 @ 18.08 is registered as a sell!
Eringael If you are so sure "the percentage is what it is" can you tell us which percentage it ii's? Is 7.5% of 100% of all overall revenue or is it 7.5% after a 20% royalty has been deducted, that is 6% of overall revenue
substp Have you a reference to COP's royalty? I can't find anything.
The 20% royalty to the state and Renegade mentioned in 25/5/16 rns:- "Highlands will retain a 100% working interest (full responsibility for drilling and operating costs) and will receive 80% of revenue generated by these wells. The deductions from revenue comprise the royalty interests due to the State of Colorado and to Renegade under the farm-in agreement."
Thanks Chief. That seems to confirm that its 7.5% share after the 20% royalty taken out, so its actually more like 6% of total revenue, hence $4 / barrel of total production is a good guide to work on.
Somethings not clear to me at the moment, about whether we receive ~ $4 or $5 per barrel in the ED deal. Is it confirmed that the rns deal statement - "a 7.5% carried interest in all current and future East Denver wells", means 7.5% of 80% interest after the royalty of 20% has been deducted. That is it is not 75% of the total revenues of whole (100%) ED project.
In today's rns Highlands is "ADVANCING commercial conversations". Can any one tell me if this language is any stronger than previous updates? Unfortunately I can't find previous references. "Highlands is advancing commercial conversations with a range of oil and gas operators and service providers to commercialize DT Ultravert technology." Thanks in anticipation.
Thanks Steady. As you say a good model. Still trying to understand how much per barrel net we get at 7.5%. At the current WTI with the $1.8 deduction, I make it a return of $5 per barrel to HNR. Are there some additional OPEX costs to knock off that bring it down to $4 per barrel?
and future income potentially about $4 million / year for 6 additional completed wells rising to $12 million / year for 24 completed wells. No headaches about raising finance and more time and money to devote to other projects.