Posted in: commodities-and-mining
Highlands Natural Resources!5 Jun 2018 21:17
East Denver.
1. Drilling Completed for Buckskin and Grizzly.
2. Ouray - Thunder - Citadel - Hagar Drilled Vertical Section, Cased and Cemented.
3. WildHorse and Powell in production and are top 3% in Niobrara Formation.
4.Fully funded for drill program with entire capital costs with an 7.5% unrisked also additional wells funded by Highlands' partners.
5.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
DTU
1. Drill ready in a week to aim for an abundant low-cost nitrogen gas reserves.
2. Purchase of 800 acres of land leased for appraisal.
3.Established itself as a bonded operator in Kansas.
4. Opportunity to become a low-cost nitrogen producer and, most importantly, would secure nitrogen supplies for the Company's proprietary DT Ultravert technology.
5. Company's priority is to advance the commercialisation of DTU through licensing agreements and direct service revenue.
6. Highlands may acquire strategically aligned resources or assets that directly benefit DTU commercialisation.
7. 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.
8. 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).
9. Patents (4) allowed for DT Ultravert as a Diverter in Refracks and Parent Well Protection.
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.
Permian Basin Rig Count
http://insights.energentgroup.com/weekly-rig-counts-in-permian
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