18 Oct 2018 07:00
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY HIGHLANDS TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
18 October 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Colorado Shale - Permitting of West Denver Project
Highlands, the London-listed natural resources company, is pleased to announce that it has filed applications with the Colorado Oil and Gas Conservation Commission ('COGCC') to establish drilling and spacing units to allow for up to a 104 well development programme at the West Denver Shale Oil and Gas Project. The Company has also expanded its landholding to 4,800 acres.
The Company will file up to 104 well permits with the COGCC prior to the November 6th vote on a change in the Colorado Revised Statutes, called Proposition 112. This Proposition aims to increase the well setback limits from 500-feet for occupied buildings and 1,000-feet from school structures to 2,500-feet for all structures and vulnerable areas. Although similar propositions have failed in the past, the Company has been advised that by filing the permits prior to the ballot it has minimized the potential risk posed by Proposition 112.
Highlands is in on-going discussions with various strategic and financial parties for the development of its West Denver Shale Oil and Gas Project. The Company aims to leverage its potential partners' capital commitments to develop the asset with minimal costs to the Company and retain a significant carried interest for all wells without dilution to its shareholders.
***ENDS***
For further information:
Highlands Natural Resources plc
Robert Price +1 (0) 303 322 1066
Cantor Fitzgerald Europe
Nick Tulloch +44 (0) 20 7894 7000
David Porter
Redleaf Communications
Elisabeth Cowell
Fiona Norman +44 (0) 20 3757 6880
Notes to Editors
Highlands (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. Highlands now expects the fracking operations to be completed in December with flow-back from the six new wells in late December or early January. Highlands is now developing plans to advance its 4,800-acre shale project in the Denver Julesburg Basin west of Denver
· Highlands Water Resources formed to facilitate a range of initiatives focused on easing the water shortage currently being experienced across the US oil and gas industry, and particularly across more arid States such as Colorado. Highlands Water Resources is partnered with Epiphany Water Solutions and is currently processing water on the East Denver wells with the proven E10X modular solar powered water-recycling units. Highlands is also exploring the potential to supply water from its acreage in Montana.
· 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, over 1,500+ acre Kansas of low-cost highly-pure nitrogen resources and 46,000-acre prospective carbon dioxide resource leases in Arizona. Highlands' first well in Kansas recorded a 99.59% purity and initial flow rate of 2,581 Mcfpd. Highlands is in advanced commercial discussions with various parties for full scale commercialization of its technological and natural resource assets.
· Montana Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations on-going.