Project Summary!2 Aug 2018 13:05
Been on holidays for a while but there lots of new info to be digested!
With the call from RP more info is know, one is the 0.41% of the Kansas drill is made up of Helium and Argon so they are going about their business quietly as more acreage here would be very welcome!
Secondly the drilling costs will be reduced and timelines to drill with the reduction in drilling time from 17 days too 5 days, that's an excellent result!
East Denver.
1. Drilling Completed for 6 XRL Wells on Sections 15-16.
2.Preparing for the Stimulation of a Zipper Frack which will be Fracked Simultaneously in a three well configuration.
3. New bottom hole drilling assembly technique to increase efficiency and costs (Cut drill time from 17 days down too 5days).
4. WildHorse and Powell already producing and are top 3% in Niobrara Formation and are aiming the next 6 to be the same.
5. Fully funded for drill program with entire capital costs with an 7.5% unrisked also additional wells funded by Highlands' partners.
6. Natural gas purchase agreement with a local pipeline operator for its East Denver Project in Colorado with monetisation of natural gas and associated liquids.
West Denver
1. 48 XRL horizontal shale wells double the scale of the entire East Denver project subject to regulatory and commercial approvals.
2. 100% working interest across 2,490 net acres with the potential to increase the West Denver land position over time.
3. Total costs to date for the leases are US$50,000.
4. Numerous similarities with East Denver the Niobrara formation shows prominently under the West Denver acreage, also other attractive shale targets including the Codell formation.
5. Highlands seeks to maintain a significant carried interest without dilution or capex burden for shareholders.
6. Quick permitting and development process with West Denver's surface area largely unencumbered by urban development, and is consolidated into closely grouped parcels