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[monkeymonkey] 25/7/2016 07:29

Highlands Natural Resources plc ('Highlands' or 'the Company')

Denver Julesburg Basin Farm-In Agreement



This announcement contains inside information.



Highlands Natural Resources, the London-listed natural resources company, is pleased to announce that it has entered into a farm-in agreement in Arapahoe County, Colorado with Renegade Oil & Gas Company, LLC ('Renegade') which will allow it to drill up to six horizontal wells in acreage prospective for the Niobrara shale formation.



Highlights:

· Highlands entitled to an 80% revenue share

· Advanced discussions on financing the development

· Drilling expected to commence by the end of 2016



The transaction entails a US$500,000 total payment from Highlands to Renegade, comprising an initial payment of US$250,000 for the right to drill the first two wells and a second payment, on commencement of drilling of the third well, of US$250,000 for the following four wells. In all wells drilled by Highlands on the farm-in acreage, Highlands will retain a 100% working interest (full responsibility for drilling and operating costs) and will receive 80% of revenue generated by these wells. The deductions from revenue comprise the royalty interests due to the State of Colorado and to Renegade under the farm-in agreement.



In parallel with negotiating the farm-in agreement, Highlands has also commenced discussions with several industry partners regarding the joint financing and development of the farm-in acreage. These discussions are now at an advanced stage such that Highlands believes that it can commence drilling by the end of 2016. Highlands is not obliged to drill any well unless and until it has secured, on terms satisfactory to it, third party financing to fund the drilling of such well and all associated testing, completion and other activities and expenses. A further announcement will be made in due course.



The farm-in acreage is bordered by ConocoPhillips leases that have been delineated by producing horizontal wells ranking among the most productive in the Denver Julesburg Basin. The presence of nearby production provides important data for analysing and projecting the productivity of the wells planned in the farm-in acreage. Specifically, Highlands is able to use Conoco's well designs, completion methods and decline curves as analogs for its planned farm-in wells. Conoco has drilled numerous productive wells in its leases north of the farm-in acreage, including wells drilled within the township of the farm-in agreement as well as adjacent townships. The majority of Conoco's nearby horizontal wells with optimized completion techniques produced between 50,000 to 100,000 barrels of oil in their first six months of production.



To put this in context, a well producing more than 50,000 barrels of oil in its first six months would rank among the top 12% of all horizontal Niobrara wells based on 2,943 wells with sufficient data history as of May 2016 (data from IHS and Colorado Oil and Gas Conservation Comission). The Niobrara shale is the fourth largest tight oil play in the United States (ranked by current daily oil production), and produces approximately 371,000 barrels of oil per day according to the U.S. Energy Information Administration's July 2016 Drilling Productivity Report.



Highlands CEO Robert B. Price said, "Highlands is very excited to announce this farm-in transaction as it opens the door to near-term drilling activity and revenue generation. Consistent with Highlands' opportunistic acquisition strategy, Highlands has secured rights for up to six wells in highly prospective geology under favourable commercial terms. Having studied this opportunity for some time, Highlands' technical team is confident in the economics of horizontal drilling in the transaction acreage. We are already in advanced discussions to finance the development of this acreage and I will look forward to updating shareholders in the coming months."

[morgan20] 24/7/2016 14:55

I see HNR raised £1.25m from some of the warrants on 1/7/2016

[morgan20] 22/7/2016 12:13

I think HNR has got to be the bargain of the century.

Any hint DT Ultravert works in the schlumberger tests this Quarter and the company should be worth at least £200m pre DTU roll-out meaning a share price around 586p.

[morgan20] 22/7/2016 12:11

HNR has got to be the bargain of the century.

Any hint DT Ultravert works in the schlumberger tests this Quarter and the company should be worth at least £200m pre DTU roll-out meaning a share price around 586p.

[dice1950] 22/7/2016 08:22

Ascent Resource to Sign First Agreement Required to Progress Alternative Route to Market … According to recent reports published by Slovenian daily Finance, Ascent Resources plans by the end of July to come to an agreement with Slovenia’s Petrol and Nafta Lendava allowing the company to take out a loan for gas infrastructure restoration and gas production.

[treelorry] 21/7/2016 14:20

Any figures or just words?

[new tech] 21/7/2016 13:28

Tom seems to have overlooked the recent Competent Persons Report on HNR's helium asset in Montana. Also the CEO has invested a large amount of his own cash into the business and together four directors hold 44% of the stock and are not drawing salaries, so have their skin in it.

[dice1950] 21/7/2016 12:21

Highlands Natural Resources PLC (LON:HNR) is a huge mover today and is uptrending We have 60.27P TGT
21st July 2016

[dice1950] 21/7/2016 12:11

Could Highlands Natural Resources PLC Change Direction After Today’s Huge Increase?

July 19, 2016 Marie Mckinney
The stock of Highlands Natural Resources PLC (LON:HNR) is a huge mover today! The stock decreased 6.22% or GBX 1.62 on July 19, hitting GBX 24.5. About 867,490 shares traded hands. Highlands Natural Resources PLC (LON:HNR) has risen 83.33% since December 15, 2015 and is uptrending. It has outperformed by 77.75% the S&P500. The move comes after 6 months positive chart setup for the GBX company. It was reported on Jul, 19 by Barchart.com. We have GBX 60.27 PT which if reached, will make LON:HNR worth GBX more.

Highlands Natural Resources PLC, located in Beckenham, UK, is an Investment company. The company has a market cap of GBP. The firm focused on acquiring gas and oil assets which are commercial at current oil prices & firm experienced gas and oil and financial professionals. It currently has negative earnings.

[dice1950] 21/7/2016 12:01

HNR buyers loading up at 25.59p and above big big increase in volume yesterday but mega today NEWS DUE

[new tech] 21/7/2016 11:39

Presentation 27/6/2016:

[dice1950] 21/7/2016 05:49

Highlands Natural Resources Plc (HNR) Potential sources of helium revealed
21st July 2016

[dice1950] 20/7/2016 21:51

VIDEO Highlands Natural Resources Plc (HNR) What Happens If We Run Out Of Helium?
20th July 2016

Helium is used for everything – from scanning groceries to MRI and nuclear engineering! Why is it so important and where can we find more?

[dice1950] 20/7/2016 15:02

HNR has trades activity worth reviewing right now.

[bandflex] 20/7/2016 11:57

My only interest is in DT Ultravert, everything else is BS feedstock for the rampers.

I want to know what happened with Calfrac, they were not waiting for the Schlumberger tests, they signed a license back in May. You would have thought they would have used the process for fracing by now and given an opinion, which if positive would have had HNR shouting from the tree tops, but theirs silence and that's not a good thing, on the other hand their could be an update at any moment. The rather desperate attempt to sell off the warrants less than a month after the license was signed might be coincidental though the timing is a worry nontheless. I have emailed HNR and await a reply.

[grim] 19/7/2016 20:08

1 share traded last thing - that's confidence for you!

[morgan20] 19/7/2016 11:43

DT Ultravert test to commence as early as July and no later than September.