Article today proactiveinvestors4 Jun 2018 10:06
Highlands Natural Resources acquires 2,490 acres of oil and gas leases in Colorado
The company said its experience, capability and execution evidenced in the success at East Denver has led to the identification and acquisition of these high-quality assets in West Denver
The West Denver project is expected to be primarily oil-focused, but is also anticipated to generate condensate natural gas liquids and natural gas as upside revenue stream opportunities
Highlands Natural Resources Plc (LON:HNR) said surface casing for all six new wells at its East Denver shale project in Colorado has been completed.
The current stage of drilling is expected to be completed towards the end of June.
Highlands revealed it has acquired a consolidated package of 2,490 acres of oil and gas leases to the west of Denver, Colorado where the company believes that up to 48 horizontal wells could be drilled, subject to regulatory approvals.
Highlands said the newly-acquired assets have a similar operational environment to the successful East Denver project and require a similar development process.
Total costs to date for the leases are US$50,000.
"West Denver will be a valuable addition to Highlands' core shale strategy, which creates a growing foundation of cash flow from which the company will advance its other projects. Following on from our success in our East Denver project, Highlands will aim to develop West Denver with third party funding and create value for our shareholders with our revenue generating assets and our upside projects," said Robert Price, the chairman and chief executive officer of Highlands.
Shares in Highlands Natural Resources opened 4.1% higher at 18.85p
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