11 May 2018 07:00
11 May 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Spudding of six new wells completed
Highlands, the London-listed natural resources company, is pleased to announce that the six initial new wells being funded by Highlands' partners at the East Denver oil and gas project have now been spud.
The new wells spudded since April 2018 are named Buckskin, Citadel, Hagar, Ouray, Thunder and Grizzly. With two producing wells, Wildhorse and Powell, already delivering cash flow to Highlands at the Project, these six additional wells will bring the total number of producing wells up to eight when complete. Up to 24 wells are possible across the Project, and this funding arrangement has the potential to cover all future wells at East Denver. Highlands will retain a 7.5% carried interest in each new well drilled, as well as the two existing producing wells, providing substantial revenues to the Company going forward.
The Company will now move on to sequentially drill out the lateral portion of each wellbore. Having spud the six new wells within two weeks, phase two of the drilling on the northern drilling and spacing unit is on track to be completed by the end of June, in line with the time frame set out on 27 April 2018.
Robert Price, Highlands' Chairman and CEO, said, "The rapid development of these wells demonstrates the firm commitment of our partners to develop our East Denver Project. We are positioned to receive revenues from eight producing wells in Q4 2018, which will enable the acceleration of development across our existing and future portfolio projects. Based on the strong production rates achieved at the existing producing wells at East Denver, I feel confident regarding the future cash flow potential of upcoming wells. We expect to update shareholders regarding our future strategy to utilise our funds to create further value in the near future."
***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:
· East Denver Niobrara: a horizontal oil and gas project targeting the Niobrara shale formation in a well-studied area of the Denver Julesburg Basin. The Company has two wells drilled and producing cash flow and is now fully funded for at least six additional wells, to be delivered in the short term. It has a 7.5% carried interest in existing and future wells.
· 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.
· Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations ongoing.