Tue, 25th Sep 2018 15:50
25 September 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Reduction of Capital Approved
Highlands, the London-listed natural resources company, announces that further to the announcement on 24 July 2018 and the passing of the requisite resolution at the Company's Annual General Meeting ("AGM") last month, the Court has confirmed the reduction of capital of the Company at a hearing earlier today, and the Court order and statement of capital have been delivered to and registered by Companies House. The reduction of capital is therefore effective with the nominal value of each Ordinary Share in the Company reduced from five pence to one penny per share and the Company's Share Premium Account has been cancelled. Trading in the shares with a nominal value of one penny will commence at 8.00 a.m. on 26 September 2018.
Details of the reduction of capital were set out in the AGM notice published by the Company on 24 July 2018. In summary, the effect of the reduction of capital is to create distributable profits on the balance sheet of the Company. The Directors believe that, subject to the future performance of the Company, this should give Highlands the ability to make distributions to shareholders in the future, as and when the Directors may consider that it is appropriate to do so. However, the Directors cannot give any guarantee that the Company will make any distributions, or provide guidance as to the size of the distributions if any are made.
The reduction of capital does not involve any distribution or repayment of capital or share premium by the Company and will not reduce the underlying net assets of the Company. Accordingly, pursuant to the reduction of capital becoming effective, the Company's issued share capital now comprises 118,164,367 ordinary shares with a nominal value of one penny each. This is the same number of issued shares as before the reduction of capital, although the nominal value has changed. Existing share certificates remain valid.
For further information, please visit www.highlandsnr.com, or contact:
Highlands Natural Resources plc
+1 (0) 303 322 1066
Cantor Fitzgerald Europe
+44 (0) 20 7894 7000
+44 (0) 20 3757 6880
Notes to Editors
Highlands Natural Resources (LSE: HNR.L) is a London-listed natural resources company with a portfolio of high-potential oil, gas and helium assets and technologies. The company's core projects include:
· Colorado Shale: having developed a horizontal oil and gas project targeting the East Denver Niobrara shale formation, Highlands retains a 7.5% carried interest in the project, which is fully funded and operated by Highlands' partners. East Denver is currently producing from two wells, with six additional wells drilled and currently being completed, with the potential for up to 24 wells in total. Highlands is now developing plans to advance its 4,477-acre shale project in the Denver Julesburg Basin west of Denver. Highlands is preparing to file drilling permit and drilling and spacing units to cover wells in West Denver project.
· Well Performance Enhancement Portfolio: A collection of inter-supporting technological and natural resource assets, consisting of DT Ultravert, a re-fracking and parent well protection technology with four patents allowed and additional patents pending in the United States and internationally, 1,100-acre Kansas low-cost highly-pure nitrogen resources and 46,000-acre prospective carbon dioxide resource leases in Arizona. Highlands in advanced commercial discussions with various parties for full scale commercialization of its technological and natural resource assets.
· Kansas Nitrogen Resources: 1,100-acre low-cost nitrogen resources with 99.59% purity and initial flow rate of 2,581 Mcfpd. Highlands is in discussions with end-users of nitrogen for the commercialization of its resources. Highland is in advanced discussions with third parties to sell Nitrogen.
· Montana Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations ongoing.