Highlands Natural Resour... Share Discussion Threads

[new tech] 08/8/2016 16:26

tyranosaurus, there is already precedence for nitrogen fraccing, e.g.







Some interesting facts re HNR's link with Calfrac for the DT Ultravert system:

[doobster78] 08/8/2016 15:56

thought 30p was gong to break earlier today. slightly disappointing to be down today.

[morgan20] 08/8/2016 14:39

Also DT Ultravert will not use as much water as conventional fracking. The nitrogen can be vented off harmlessly. More environmentally friendly.

[the hood] 08/8/2016 13:55

Half of what it is now.

However, if successful it will be multiples of where we are now.

Risk/Reward ratio makes this a compelling play IMO.

[tyranosaurus] 08/8/2016 13:45

There seems to be people on this board that are 100% certain that the testing will deliver fantastic results.
What will share price be if test results are poor ?

[morgan20] 08/8/2016 09:21

Now is the time to be buying imo.

The large late reported "Y" trades that pushed the price down in May/June have been steadily decreasing:

May 38.6m
June 19m
July 10.3m
Aug <4m?

The figure above for July includes 5m warrants anounced on 1/7/2016 as being exercised by the Institution who bought them from Diversion, which seem to have been easily sold onto the market on 4/7/2016 - when a trade for 5,030,000 was recorded. The current remaining "Y" trades are been put through in smaller amounts that are being easily absorbed.

The company seems to have access to cash when needed. They raised £765,000 on 29/1/2016 and £519,093 on 27/4/2016 via via Placings, plus £1.25m from the 5m warrants exercised on 1/7/2016. They have also been receiving 10's of thousands of £'s each month from the exercise of smaller amounts of warrants (e.g.RNS announcements, e.g. 8/7/2016 50k warrants = £12,500, & 28/7/2016 100k warrants = £25,000) - don't know who is exercising these but the numbers are small.

[effiert] 08/8/2016 09:20

red to blue. multibagger in the making

[new tech] 08/8/2016 08:48

Let's wait until the testing starts next month. There does seem to be some serious value here, so Q3/Q4 should be very interesting.

[morgan20] 08/8/2016 08:13

This is due for a massive rerating. Must be worth a couple of pounds on DT Ultravert alone.

[e j blythe] 05/8/2016 18:25

Dipped me toe in at 27.

Making painfully slow progress.

all the chatter on LSE

[effiert] 05/8/2016 13:21

Taking these below 30p is a steal imo with the newsflow that is set to come. Testing could be as early as next week

[money4me] 05/8/2016 12:40

good stuff cheers

[effiert] 05/8/2016 12:30

No money required, Schlumbereger are paying for the testing. Also the company have money from the sale of the warrants.

[money4me] 05/8/2016 11:55

are they needing any funding soon? looks like a possible big winner if the testing comes good

[andrbea] 05/8/2016 09:17

One of the few stocks IMO with loads of newsflow in Aug/Sept period, as the tests from the oil wells come in. With the helium project to fill the gaps inbetween. Interested to see what Schumb. make of the well results; they have deemed it feasible for almost a year now, and they know their onions.

[effiert] 05/8/2016 09:08

These small moves intraday are irrelevant. Once DT testing starts and Schlumberger prove it works then my word we could be looking at £2+ easy. The technology is priceless to every oil company in the world. Big things coming to HNR and very few shares in circulation so I'd expect it to hit 50p+ jUstinov on confirmation that testing has started

[effiert] 05/8/2016 09:02

Can see £3-4 here very soon if the tech works

[asusasus] 05/8/2016 08:49

Looks like this train is about to leave the station!

[new tech] 05/8/2016 08:46

I would have thought 10 to 20 times the current market capitalisation of £10m if DT Ultravert works.

[effiert] 04/8/2016 16:24

making its way to 30p+ very soon. testing cant that far away now

[effiert] 04/8/2016 11:33

taken 100k today myself. will be £1+ in a flash should the tech work

[arsey] 04/8/2016 11:11

A good time to come back now it's settled down. Still has excellent prospects plus is now very near the strike price of recent warrants so possibly little downside. I would like to see them get the warrants exercised at 25p, all 25million left and get the cash in the bank. If the DT Ultravert works then it should be worth many multiples of today's market cap given time. RC

[morgan20] 04/8/2016 10:54

INVESTMENT OVERVIEW
Highlands Natural Resources primed with catalysts ahead of June re-fracking tests
Jamie Ashcroft
14:18 23 May 2016


A string of positive announcements, since mid-April, have seen the share rise around 500% and in the coming weeks promise possibilities for further share price catalysts.

Highlands Natural Resources Plc (LON:HNR) on Monday jumped more than 40% trade at new highs above 60p a share after the diverse investor unveiled its latest fillip, a deal with a significant US oil services group.

It was the news that Calfrac Well Services Corp, a leading US oil services group, had joined Schlumberger as a licenced partner for the group’s 75% owned ‘refracking217; technology. This is the latest in a string of positive announcements since mid-April, and the positivity has seen the shares gain nearly 500% from 10p.

The deal will further aid the roll-out out of the technology, a re-fracking system called DT Ultravert which is designed to give a low-cost boost to production, and it is importantly expected to deliver a share of revenues.

An initial two year contract also sees Calfrac return key data back to support the further development of the DT Ultravert technology.

Last September brought HNR’s first breakthrough partnership, signing up Schlumberger for DT Ultravert, which at that time the company described as having the potential to be a “major disruptive force”.

Through the partnership deal Schlumberger wants to evaluate the potential of DT Ultravert by assessing the data gained from five field trials over a year.

The technology has been developed by Diversion Technologies and specifically Paul Mendell, who created AIM-listed Iofina.

Against a backdrop of persistently low oil prices producers and the oil services companies that drill and frack have been frantically casting about for ways of optimising what they do.

One approach deployed onshore in the US has been to re-frack wells, which, while lower cost than drilling new targets, has met with limited success.
WATCH: Re-fracking is the holy grail for oil and gas industry

Diversion’s Mendell thinks he has come up with a simple and effective way to re-frack that is game-changing. The technique uses a pressurised gas (initially it will be nitrogen), rather than fluids.

Mendell believes the gas will “block and divert” fracking fluid away from already cracked rocks to new, new untreated areas.

Crucially, he thinks it will work on horizontal wells that have thus far proved very difficult to re-frack.
Colorado testing could present a major catalyst

HNR’s share price really started moving in mid-April, around the announcement that the company was expecting the first commercial tests for the DT Ultravert refracking technology in June.

The patent protected technology, which enhances well output at a fraction of the cost of drilling a new well, is expected to be piloted in a well in the Piceance Basin, Colorado.

It is one of a number of projects being targeted by HNR alongside partner Schlumberger.

Discussions are ongoing with more than 20 exploration and production companies in the United States, the company revealed last month.

The other well candidates for the refrack technology are found in the Denver-Julesburg Basin, the Appalachian Basin, the Williston Basin and the Permian Basin.

"This is a truly transformational time for Highlands, demonstrated by the significant advancements we have made towards commercialising DT Ultravert as well as the potentially game-changing acquisitions we have made in the gas, helium and uranium sectors,” Price said at that time.

The potentially lucrative technology is, however, just one of the assets in the HNR portfolio. The company has also been accruing acreage in the United States for very separate exploration businesses.
Expanding exploration footprints

Earlier this month, May 18, HNR announced the latest in a series of deals to expand its exploratory portfolio, with a low cost deal for an area in North Dakota’s Williston Basin.

The company has acquired some 1,979 acres in the Williston Basin in a deal worth around US$14,000, paid in cash. The deal adds to North Dakota licences acquired in November, and its takes Highlands’ position in the area to 3,951 acres.

"We are delighted with the low cost acquisition of these exploration licences in North Dakota,” chief executive Robert Price said at the time.
A uranium mining opportunity in Utah

Analysis of oil well logs prompted a deviation in the company’s initial thinking. After finding evidence of uranium in the holes the company has been building its acreage position and now plans to bring in a partner to take the assets forward.

The Utah uranium portfolio now comprises a total of 1,384 acres. And the company believes an ‘in-situ’; mining operation could be developed.

HNR revealed recently that it was seeking to commission a competent persons report – whereby an independent expert will assess the potential of the deposits. At the same time it is hoped that a partner can be brought in to aid the next phase of the project in the coming months.

Price describes the uranium element of the portfolio as “strategically important”.