Member Info for HopefulDave

Or rather 180 lol. Getting carried away myself there. He missed the 000 off anyway and it made me chuckle.

At the agm Robert said we had produced 280 barrels. I think must have meant 280,000, for a moment I thought I’d been magically transported to one of those AIM oilies!

Also. If DTU doesn’t uptake quickly, with our own Nitrogen supply, I absolutely see us moving on plots and looking at doing wells ourselves. - prove it ourselves and cream off oil and gas ourselves. But we need more play $ for that. WD...

It’s not lacking focus is it come on... Mistakes on ED - yes a couple. That pretty much is the sole reason we are where we are. Learn from them and move on. We have, have we not? The position of Kansas and WD is strong and more to the point the starting position is far stronger than ED ever was. Helios could finally unveil some of its real potential in a couple of weeks also. We are at least proving what we look for is there and we can get it out of the ground also, we are on a hat-trick, let’s hope we score on Helios also? Kansas & WD have the potential to be transformational, like serious revenue transformational... If we can see the acreage grow in Kansas that is going to excite me more than the oil will. That (oil) will provide a very very nice ongoing revenue stream from WD and and even the ED play. Kansas however is quick, really quick, and dare I say it cheap. Clearly the work required to get the gas from the well to whatever market it ends up at will be the big play to watch. Initially seems to be enough capped wells out there like Barret so if the additional acreage can be acquired there the possibilities are huge, even what we have today could produce a great revenue stream in itself. Cheap quick successful wells, don’t mind us drilling or just even recompleted wells coming online with the possibility there. If Barret was less than the $250k they said would originally spend on the wells they would drill themselves that’s great. Cheap and quick. Helios is on the cusp of showing us (hopefully) what the Eagle formation could deliver. At least these are all “real projects” All in a safe country to operate in, listed on the main market and limited in the amount of dilution we could face (unlike aim which can do 100% of shares a year!) I may not be happy with the SP but I feel a lot safer than I would with my money in a bunch of the “get rich quick” schemes I see people losing money hand over fist in elsewhere. Feel sorry for people heavily underwater, especially if you were up before. Hopefully you don’t need the money for a while. And that’s not to say I don’t expect us to rise up, more that looking at 2020 and beyond we could be looking at £s a share, and we won’t straight line there that rise will come as assets produce revenue. WD should start in 2019 - Kansas late 2018, or 2019..

Cully went, ultimately he was there to assist in the finance of ED using his contacts from banking, and we didn’t use the Private Equity he was there to help find as we ended up using our own contacts (ie Roberts and Paul’s exitsing contacts with True etc). They had deals lined up, but then all of a sudden they upped their price, wanted a seat on the board, wanted sole concentration on ED and nothing else (the private equity banking people). The BOD rightly pushed back and ultimately told them where to go and got the best finance deal in the time that was left. Without that we would not have Kansas, WD, or CO2 play. So proven to the the correct thing to do. Nothing sinister in the situation, just one of the two things that didn’t go well with ED / our initial shale plays but since rectified. 1) the overall finance package 2) renegade Both delayed the operations continuing in ED, both left us with little time contractually with the ED play. WD - we don’t have renegade. WD - we aren’t under significant time pressure (contractual drill x by y) as we have the leases ourselves. So we can do it better this time, in a number of ways. Better financed. Less restricted (COGCC planning and no blockers (renegade) no need for waiting for hearings to approve applications) Better techniques. - Faster drilling (Niobrara wells anyway) should reduce costs and speed up delivery.

I guess you simply have to look at what’s coming and decide what will happen when. ED - slightly further along than we thought I guess which is good. Robert mentioned on Frak stage 22 I think out of 55 so must have been going for a while rather than just started the frak. Kansas - Seems pretty clear want to expand acreage there and have targets. Any deals (commercial) before we have more wells / acreage - probably not, but never know how far along that work is. Went from lease to a working well in ~3 weeks! Clearly have plans here.. Helios2 - we should see that stage open in couple of weeks. - what then in terms of next steps / impact of the result towards potential viability - adjustment of risk % perhaps ? Coverage based on the results could be interesting. Although we know in itself this won’t prove viability of the whole play (muddy formation etc) but the eagle formation result itself could be interesting. If flow is epic the “cheap” Eagle wells themselves will look good - just a question of where next on the acreage (near pipeline infra?) perhaps to drill a few more, muddy dewatering or what really? - the results could spark a lot of interest however as even just the eagle play could be worth a fair bit. WD - now expect acreage to finish doing whatever doing over next 1-2 months but no idea how much to expect in total, when and if an incremental chunk will trigger an at least x more wells or not? WD - finance. I did ask could we expect news on that before permitting / after permitting / once land is finalised etc but in all fairness it could be at anytime. More than likely obviously after know what is what, but they already know where they want to space / drill wells etc (having secured the surface use rights for 1st pad etc) and no doubt would share that with potential financial partners, but most likely come after land you’d think? DTU - imho unlikely have more tests anytime soon / Robert pretty much said it’s on them to do commercial deals... So yes lots of jam tomorrow, but clearly WD and now Kansas could be very big..

Blue. I think that’s been thought of by a few of us before! It’s kind of a nice flip side of DTU. If DTU kicks off then we cash in and ride the royalty train. If it doesn’t, then there will be lots of uneconomical parcels of land out there to be picked up cheaply and we can DTU wells ourselves. (When we have more $ coming in from WD etc) It’s kind of the “every cloud has a silver lining approach” I think of with DTU.

On a serious and non sarcatsic note... it is a good video, and backed up well by Robert and Paul in the room with personal comments after, he (Robert) is clearly still very excited about the prospect. I get the impression Kansas is going to be big, I said it when it first came out and stick to my guns now as well... Doesn’t make any sense how WD is still being land increased and we are keeping it a little under the radar and yet we went in with a fanfare and “ta-da / Ye-ha” with Kansas. Must be options to expand there or doesn’t make sense showing our hand in such a strong manner. I certainly get the impression more to come from there, especially with that video right? Helios within a matter of weeks.They “missed out on the drill on its way somewhere, so nabbing it on the way back” clearly it’s a quick operation to remove the plug but just one of those things. Night highlanders.

Given the amount of people here who constantly think there is some kind of conspiracy theory behind everything don’t you find it a little funny that... Tap tap tap tap.. We’re caught in a trap. (Nitrogen in the Salt) I can’t walk on (Plugged well) Because I love you too much baby (D14) Why can’t you see (Cantors research note?) What you’re doing to me (Frustrated SP) When you don’t believe a word I say (clearly directed at Robert from some <rolls eyes> posters here) We can’t go on together (those who’ve sold) With suspicious minds..... Right. Now that song is in everyone’s head. Good night!

Eskers!!! So you were on the right hand side! You could only know that if you were there so just be one or two to the right of me! Good summary and note taking btw. And totes agree with the summary of what you have covered.

RNS

Frak has started so that’s good. WD acreage expansion is also obviously good, will be interesting to see at what point we will start to permit this, and therefore how quickly that project can progress. Wonder how many more acres are required before it’s at least 48 + ( x ) wells?

“I am delighted to welcome our shareholders to our AGM and update you on some of the great progress we have recently made. “Namely, fracking has just commenced at our six new wells at the East Denver Project, which is one of two projects within our Colorado Shale division. We expect operations to be completed in October, with flowback from the new wells in November. The total number of producing wells at East Denver will increase to eight following successful flowback. This, together with the construction of a gas pipeline, which is expected to commence in September, will substantially increase our revenues from this scalable project which is being entirely funded by our partners. “On top of that, I am pleased to inform you that Highlands has increased its acreage position at the West Denver Project to 3,617 acres and has entered into a surface access agreement. We have already identified the potential to drill at least 48 horizontal wells. We continue to increase our land position with an ongoing leasing campaign. As previously highlighted, discussions are underway with potential joint venture partners to finance this project. “Progress is also being made across our Enhanced Oil Recovery portfolio, and we are expanding our nitrogen project at low cost. The Barrett well nitrogen flow rates delivered so far indicate that our existing acreage could deliver enough feedstock for our DT Ultravert technology, and in turn make it more economic for future customers. Given that the nitrogen market in the US is valued at $4.1 billion annually, we are building exposure to the array of potential customers and applications for this product. Discussions with various potential end users continue. “The Barrett well generated traces of both helium and argon and we are researching the isotopic composition and potential for these. “Elsewhere, at our Montana Project, we expect to open Stage #1 at the Helios 5-52 16-22 well shortly. This stage targeted the Eagle Formation, which has been soaking for over eight months, and we look forward to further testing when we drill out the bridge plug. “As shareholders can see, we have a lot to look forward to across our various business segments over the coming months. I hope Highlands shareholders will share in our enthusiasm for these plans and for what the future will bring.” Robert Price will also give a presentation at the AGM summarising the progress Highlands has made this year. A copy of that presentation will be available on the Company's website, www.highlandsnr.com, following the conclusion of the meeting.

Nice article but after pointing out the 3 things that were incorrect in the last one he’s only corrected 2/3 and got the old acreage up for West Denver still. But at least he’s got the 5,000bopd as coming and not current, and not mentioned an oil pipeline this time!

9/10 must try harder.

+ nudge up that 40p target!!!!

Doh! ... B) possibility of finance deals beforehand, but likely permitting process to follow. I will be intrigued to see how quickly that happens on final acreage confirmation. It’s likely with “at least 48 wells” I would imagine some of the spacing applications, pad permits and well permits would already have been worked on and drawn up as best they can and be and ready for submission. The core land at least being told already should be easy to permit, I’d expect us to see the plans before long. C) once land is done and possibly alongside permitting it after, release on financial options - which may come in 1, 2 or 3 or more tranches for the play - confirming no dilution or capital requirement for HNR. Crunch the numbers then. As conservative as you like.. but with the % free ride on +48 wells in proven territory... they all look exceptionally good to me! It’s why I’m not waiting to be spoon fed good news in an RNS to accumulate at a more realistic valuation of the company at a later date. Fortune favours the brave, or the early bird catches worm etc. Anyway. Sunday roast and wine time at the local. I can’t spend all my disposable income on this, I do need to live a bit now!

Fadec. Excellent post as usual. I spoke to Robert after the results for a good twenty minutes and approached him about West Denver, my thoughts on the East Denver % and some of my views on how I thought West Denver may play out. As always nothing was given away, but the enthusiasm in the way he spoke about it with the cloud of “farm ins” removed was evident. I can’t recall precisely what he said, but when discussing the formations Codell appeared to be the predominant one for WD. That I do recall as we were laughing about pronunciation of things as he corrected me on the pronunciation of Codell, and I said I’d let him have that as it’s a formation in America, but then reminded him to add some letters into the pronunciation of certain words if he insisted on speaking “English”. At least he has a good sense of humour, at times with ED I think he’s needed it. In short he reiterated what was already released in the RNS’s, and what he’s publicly stated before in interviews, expanded upon where possible, along with discussing my hypothetical finance options, being hypothetically all possible, without giving any sensitive details away! It’s where he liked my analogy on the “property development approach” Of course he was happy to discuss items already in the public domain, such as the investigative research the likes of Sub, yourself and I and others have found over time, digging about with enquiries with SLB / COGCC, archives etc, but nothing more than we have already uncovered in the past. We certainly have options for WD. But with the 100% lease the Initial WI, Initial WI with reversion coming after the wells paid out, or potentially WI with a lower reversion with cash up front, are all possible options, depending on our needs. The good thing is, we have proven our ability to do the work required to find and then permit the wells, and we have the partners we have worked with previously (and possibly others now we are a bit more on the radar (and this will be a bigger acreage play)) to strike deals with. It’s not our first deal, or second deal and we don’t have forced timelines, or farm out agreements to squabble over, and whilst it’s clear we can’t develop these fully on our own as we don’t have the capital, we are going after effectively proven resources, so it shouldn’t be difficult to get the partners lined up. As always several ducks to line up, or perhaps one big goose with a golden egg will appear. My two cents is those wanting multiple news releases each adding value, will get them. A) when the acreage is at a point where we have concluded securing what we think we can get. Details on the position will become apparent. B) possibility of finance deals beforehand, but likely permitting process to follow. I will be intrigued to see how quickly that happens on final acreage confirmat

That was a very good listen must admit.

Says the “lady” who insisted a 750,000 tonne TorP deal was in fact not worth the paper it was written on.

A bit like the it is a TorP when some were “convinced” it wasn’t. Well bitten by the way :)

Head isn’t in sand, and it is a possibility. You believe there will be some, I believe there won’t. Just pointing out a different side to your “there is a plan b or c and he said this”