Member Info for Fadec92

Thanks Predators I do enjoy researching Highlands as it's fascinating to find out what is going on as the with the creativity I just don't feel blind, the market is, not that I trust everyone it's that just the signals from everything and everyone and on a personal level meet them all and family's have always been a good assimilator but don't take my word, actions speak louder!

I agree with you Predators said at the start of the week that the way that Highlands are issuing impact news that things are hotting up no one can deny this and the price action today with the MM's wanting to take it up now!

New film that's also good news can't beat the first one though! :/)

Can't really guess something like this without known factors and would be unfair to people reading the forum because it would be baseless!

Highlands are really excited over the new direction and has obviously been planning for a while all the new projects, East Denver is to not dilute the share holders here and RP so we/they can reap the reward of these projects and have been tight lipped over this and still are about the plans that's all that can be said to what I think!

That's me anyway ITTB, with decline rates the only way we would find out is by comparing a similar type play, from what highlands say in RNS and looking at the geology with there to be a known Anticline called the Syracuse and a from research could be a salt formation as a top seal which are very good at sealing and maintaining high pressures so to me this looks a Conventional reservoir with no stimulation so hopefully the pressure can exist for some time!

Traps and Seals!

https://www.springer.com/cda/content/document/cda_downloaddocument/9783319297088-c1.pdf?SGWID=0-0-45-1570573-p179519993

I think this is the next stage, firstly they would want to increase acreage to the limits/boundarys of the resource maybe discussions with the Kansas oil and gas commission which they have already had a good foundation in terms of them suggesting the Recompletion well, so will be looking at the data of wells to see if the cedar creek is predominate under further places which there is a good chance after other wells displayed nitrogen of over 95% so then after they are happy with this is a third party resource estimate!

Did anyone notice that Robert said that the well has been on a 24hr test and is continuing to increase as the well cleans up, I wonder if they fracked the perfs, no mention of it and also was looking for the words to use on that! https://www.**********.co.uk/?posttype=blogpost&p=123698

Looking forward to next week with a lot of good RNS's lately the first being the strategy update with what was perceived as change of direction from the company with mixed reaction for the risk less free carry in the East Denver wells, but we now know that this was a good move with the recent news of the

1.48 XRL wells in West Denver.
2.The Indicated Nitrogen Reserve.
3.The Prospective CO2 Project.
4.The East Denver drilling update of 2 Group Zipper Frack of 3 wells a time and new technology trial for effiencieny gains.

Stand bullish from a technical viewpoint and ending the day well over what was needed as a positive indication, so now the start with a change of sentiment is something we have been looking forward too for a while! :/)

HNR!

So 1 Nitrogen well = $719K a month or $8.5M a year!

8 conventional wells 640 acres x $5.75M a month or $68M a year!

More acerage please!

Conclusions.

Nitrogen fracturing has provided enhanced oil and gas recovery in various unconventional plays across North America. Many operators reported that nitrogen fracturing is particularly suitable for shallow formations and depleted reservoirs and provides significant performance benefits compared to slickwater fracturing, namely, improved EUR rates, rapid cleanup of flowback water and reduced formation damage (particularly for water sensitive formations). These performance benefits enable operators to achieve improved life cycle economics with nitrogen fracturing, especially with increasing cost of fresh water in arid locations and the potential for increasing cost of flowback water treatment under tighter water regulations. Nitrogen fracturing fluids also have the additional environmental benefits of reduced water and chemicals consumption

http://www.airproducts.com/industries/energy/oilgas-production/oilfield-services/product-list/~/media/9546ad39b8fe4584b1f802f84d572d1b.pdf

Enhanced Oil Recovery

The way to further increase oil production is through the tertiary recovery method or EOR. Although more expensive to employ on a field, EOR can increase production from a well to up to 75% recovery.

Used in fields that exhibit heavy oil, poor permeability and irregular faultlines, EOR entails changing the actual properties of the hydrocarbons, which further distinguishes this phase of recovery from the secondary recovery method. While waterflooding and gas injection during the secondary recovery method are used to push the oil through the well, EOR applies steam or gas to change the makeup of the reservoir.

Whether it is used after both primary and secondary recovery have been exhausted or at the initial stage of production, EOR restores formation pressure and enhances oil displacement in the reservoir.

https://www.rigzone.com/training/insight.asp?insight_id=313

Enhanced Unconventional Oil and Gas Production with Nitrogen Fracturing

The design and selection of well stimulation fluids, known as fracturing fluids, play a major role in improving well completion economics because an effective fracturing fluid can significantly enhance hydrocarbon production rates. Another challenge faced by operators is that the harvesting of most of the known unconventional oil and gas resources is not yet commercially viable; hence, significant technological advancements in well stimulations methods will be required to facilitate the production of increasingly challenging reservoirs.

1.Nitrogen Gas Fracturing.

2.Nitrogen Foam Fracturing.

3.Nitrogen Energized Fracturing.

4.Enhanced Oil Recovery.

1. Devonian Big Sandy Play

Located in the Appalachian Basin, the Devonian shale gas play includes several formations such as the Lower Huron, Cleveland, and Rhinestreet, which are located in Kentucky, Virginia, and West Virginia. Evaluating the characteristics of the Devonian shale rock reveals that it has low permeability, low porosity, high water sensitivity, and a high proportion of natural fractures. Due to these characteristics, nitrogen fracturing has been the most commonly used well stimulation method since 1978.

2. The Montney shale

The Montney shale gas play is located in the Western Canada Sedimentary Basin spanning a total area of 2,961 km2, where it is of great importance to the Canadian natural gas supply. Much of the Montney play is characterized by unconventional formations that can be adversely affected by slickwater fracturing, thereby lowering the production rate of the well. Therefore, many operators within the Montney formation use carbon dioxide and nitrogen fracturing solutions.

3. Coal bed Methan.

Nitrogen fracturing fluids are widely used for hydraulic fracturing and enhanced coal bed methane recovery across coal bed methane plays in North America.

4. Simulation and Design of Energized Hydraulic Fractures

In North America, energized fracturing is extensively used for stimulating depleted tight gas formations. Friehauf & Sharma developed a simulation model for energized hydraulic fractures to determine when energized fracturing is beneficial for tight gas recovery.

All depends on the reservoir for distribution of vertical well spacings and drainage effiencieny so took the average figure from gas wells, could be more though so definately looking forward to hear of more acreage being attained and a resource estimate CPR, where more details of the well structure, plus the costs of vertical wells on a convention reservoir would be much cheaper with no stimulation!

Nitrogen purity levels over 99.59% and increased flow rates to 2,581 Mcfpd!

Very good news! :/)

Joycopter for DT high purity as the equipment can become oxidised!

We also could do with a Refrack with DT, cheap enough to demonstrate with a Nitrogen Resource looking forward to the purity results!

Trying to find out how much CO2 retails at I've emailed AirProducts and they don't supply Texas, which is odd but better for Highlands with a Prospective Resource!

"I received your inquiry regarding cost for CO2 in Amarillo, TX. Unfortunately, we do not supply CO2 in Texas, therefore, we are unable to give you an estimated cost of delivery."

We know that Nitrogen is good money estimated delivery of enough protect a well can cost $8 per Mcf!

Kansas Nitrogen and CO2 Project.

1. Convention Target - low cost Nitrogen Gas Reserve in Hamilton Kansas on a known Anticline Syracuse Basin.

2. Successful Flow Test with 1769 MCF/d from a Recompletion which perforated the Cedar Hills formation a High Pressure Reservoir at a depth of 2,150 feet.

3. Secures Nitrogen supplies for DT Ultravert technology become a bonded operator for a New Revenue stream in Kansas for Production and Supplies of low-cost Nitrogen.

4. In talks with Kansas Oil and Gas Commission on the Gas Reserve.

5. Talking to an operator to test the Carlile shale formation which consists of the Codell Formation.

6. Massive Hugoton Gas Field 25.2 TCF Near targets and Panoma Gas Field.

7. Nitrogen costs 2-3 times higher than Natural Gas.

8. Gas Samples sent to Laboratory to confirm Nitrogen Purity.

9. Gas from previously sampled wells in area have exceeded 95% Nitrogen.

10. Acquired 46,000 acres in Arizona for a Prospective CO2 Resource to supply the Permian Basin needs in Enhanced Oil Recovery (EOR) which can increase the Oil Extracted for well by 75%.

DT Ultravert

1. Company's priority is to advance the commercialisation of DTU through licensing agreements and direct service revenue.

2. Highlands may acquire strategically aligned resources or assets that directly benefit DTU commercialisation.

3. Horizontal well Protection showing DT Ultravert's technical success in a 1 mile well in the Permian Basin the biggest in North America with a 477 rig count 6 times bigger than the next best Eagle Ford with 80 rigs also with a Vertical Test in the Piceance Basin in Colorado.

4. Horizonal well group was proved to not only to be protected from bashing but increase oil and gas production to 15% not just on IP (initial Production) but over the course of months on the overall reserve extraction EUR (Estimated Ultimate Recovery).

5. Patents (4) allowed for DT Ultravert as a Diverter in Refracks and Parent Well Protection.

East Denver.

1. Drilling Completed for Buckskin - Grizzly - Ouray and Drilling Thunder finished by end of week.

2. Citadel - Hagar Drilled Vertical Section, Cased and Cemented.

3. Zipper Fracked Simultaneously in a three well configuration with a new bottom hole drilling assembly technique to increase efficiency and costs.

4. WildHorse and Powell already producing and are top 3% in Niobrara Formation.

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.

Helios

1. The Company's next step is to drill out the bridge plug currently sealing Stage #1 in Helios 5-52 16-22. This operation is targeted for Q3 2018. In Stage #1, Highlands deployed a fresh water clay hydration completion aimed to create swelling-related cracks and permeability over a multi-month process. If this test is successful, this will go some way to validating the project.

After all the drilling they will be zipper fracking 3 wells so will be brought into production and then the last 3 wells will be stimulated/completed!

BABA the cost savings of the new assembly will be usefull on the 48 wells planned in WD, but too me already thinking ahead with True Drilling again so will be drilling with them!