20 Nov 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.
20 November 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Update on Operations
Notice of Results
Highlands, the London-listed natural resources company, notes the recent fall in its share price and wishes to remind investors that management does not expect the setback at its West Denver shale operations, as announced on 19 November 2018, to have any impact to the Company's near-term financial performance.
Highlands continues to generate revenues from its operations at the East Denver Colorado shale project and the Board expects the revenues to increase significantly with the commencement of production from the 6 new wells in December 2018. Importantly, the Company anticipates delivering sufficient cashflow to cover its overheads for 2019.
In addition, whilst also early stage, the Company's water resources business is also contributing revenue to Highlands.
Significant progress has also been made with Highlands' nitrogen, project in Kansas. The Company remains in discussions with several parties with regard to commercialising this project and the directors anticipate a revenue contribution during 2019.
Highlands will be announcing its Interim Results for the six months ended 30 September 2018 on Thursday 13 December 2018, at which time it will provide further detail on the progress the Company is making with these and its other projects.
***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
Newgate 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 drilled and currently being completed and to commence production in December 2018, with the potential for up to 24 wells in total
· 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, 2,200-acre Kansas low-cost 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.
· 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 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.
· Kansas Nitrogen Resources: 2,200-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.
· Montana Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations ongoing.