29 Jun 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.
29 June 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Gas Analysis Update for Kansas Nitrogen Project
Highlands, the London-listed natural resources company, is pleased to announce that gas samples collected from the Barret 1-14B Well in Kansas during the company's flow tests on 21 June 2018 indicate initial nitrogen purity levels over 99.59%. The analysis has been conducted by Isotech Labs, a prominent independent laboratory who serves the industry across the United States.
By way of illustration of the importance of this result, nitrogen with 98-99.5% purity is used as a preserving agent by food and beverage producers, meaning that Highlands' output could be immediately used in this industry.
Of further significance is that over time the flow rate of the well has increased to 2,581 Mcfpd (compared to the initial flow test of 1,769 Mcfpd rate). At these indicative levels of production, with numerous oil and gas fields in neighbouring states, Highlands may soon be in a position to secure much of its nitrogen supplies for its DT Ultravert needs more economically. For example, during Highlands successful Parent Well Protect test in the Permian Basin 8,762 MCF of nitrogen was purchased for a cost of $79,200 ($9.04 per MCF). Also, during Highlands successful Parent Well Protect test in the Piceance Basin 12,000 MCF of nitrogen was purchased for a cost of $140,400 ($11.70 per MCF).
Furthermore, the geographical position of the Company's reserves may also be significant outside of the oil and gas industry as it is situated in the heartland of the US agricultural industry. By way of example, Highlands estimates that approximately 16 million bushels of corn are grown in the counties surrounding its project. Commercially produced corn requires approximately 1 lb of nitrogen (in the manufacture of ammonia based fertiliser) per bushel.
Highlands is already engaged in talks with parties across including industrial, oil and gas and agricultural users to explore such opportunities.
Robert Price, Highlands' Chairman and CEO, said: "Now that the purity of our nitrogen has been confirmed, Highlands is advancing discussions with industrial, oil and gas and agricultural users. This represents a significant, and potentially very valuable addition to our portfolio of projects. From an initial plan to secure low cost supplies for DT Ultravert, we may have sufficient volumes to explore entry into other industries as well thereby creating a new revenue stream for the Company."
***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. East Denver is currently producing from two wells, with six additional wells currently drilling, and up to 24 wells can be drilled in total. Highlands is now developing plans to advance its 2,721-acre shale project in the Denver Julesburg Basin west of Denver.
· DT Ultravert: a re-fracking and parent well protection technology with four patents allowed and additional patents pending in the United States and internationally. Highlands is advancing commercial conversations with a range of oil and gas operators and service providers to commercialize DT Ultravert technology, potentially supported by its own 800-acre low-cost nitrogen discovery in Kansas.
· Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations ongoing.