Highlands Natural Resour... Share Discussion Threads

[csmwssk12hu] 31/8/2016 08:36

Volume is heavy and constant share price rise for 24 hours I'm starting to believe 70 could easily be done as well now imho dyor

[csmwssk12hu] 31/8/2016 08:34

Good luck two pull backs this morning then straight back up

[zac_mo] 31/8/2016 08:31

Effiert- Sold way to early imho. good luck anyway

[letmepass] 31/8/2016 08:30

Thanks eff but first bounce expect much more, next stop 70 no resistance..

[effiert] 31/8/2016 08:26

Thats me out again. Money gone into TLOU. GL ALL

[larrylight] 31/8/2016 08:25

Avanti Communications (#AVN) And Harvest Minerals (#HMI) locked and loaded

[letmepass] 31/8/2016 08:22

Mms short of stock, no wonder it's rising quickly

[csmwssk12hu] 31/8/2016 08:22

Now over 20% nearly doubled in 24 hours, surely must be big news coming for this rise imho dyor

[csmwssk12hu] 31/8/2016 08:07

Opened up 5% and is now up 15% it's climbing steady at about 1% per min lol%

[csmwssk12hu] 31/8/2016 08:00

Looking to open up again on pre market! I'm not greedy so not asking for 10x today, just another 43% will be fine

[g1g4lo] 30/8/2016 22:35

Another report from today

Highlands Natural Resources revealed progress behind the scenes as it works towards the start of drilling at its helium project in Montana.

The company told investors it expects to be drilling within the next 30 days, with two wells planned.

In the meantime it has been filing for permits and bonds with the State of Montana, and has been holding conversations with several parties that may potentially partner the company in a joint venture. These companies include international industrial gas companies, Highlands said.

It has also expanded its footprint in the area, leasing a further 29,953 acres giving it rights to a total of 104,652 acres across the two Helios Two prospect area.

The drilling plans are based on a significant amount of data, Highlands noted, and the programme aims to demonstrate the technical and economic viability of a dewatering technique that the company intends to use in order to unlock significant resources.

Robert Price, Highlands' chief executive, said: “Subject to receipt of permit and other approvals, we are now prepared to commence drilling and dewatering operations in order to validate the economics of potential natural gas and helium resources at Helios Two.”

Price highlighted that nearby well data allows the Highlands team to understand the petrophysical and geologic conditions expected in the reservoir.

He added: “We are encouraged that similar well data extends across broad portions of the Helios Two prospect, thereby facilitating full-field development planning in the case of a successful pilot programme.

“Soon after commencement of pumping, we expect to gather and release important technical data from the pilot programme, including gas analyses and initial reservoir performance metrics.”

It is working with the oil services giant Schlumberger to prove the huge potential of the DT Ultravert system.

Work will get underway between July and September on wells in Colorado’s Piceance basin.

Highlands is also in discussions with Great Western Oil & Gas in Denver to re-frack between five and 30 wellbores, while partner Calfrac is taking DTU out to a much wider audience.

The update came as the group said it had hired an industry big hitter to lead the marketing of its cutting-edge re-fracking method.

Domingo Mata is a former senior production engineer and worked for Schlumberger for 10 years. Highlands described him as a “highly-regarded member of the well stimulation technology community”.

It also said appointment was “testament to the technology's potential to transform and significantly reduce the costs associated with unconventional exploration and production via re-fracking”.

DT Ultravert was developed by Diversion Technologies, run by entrepreneur and inventor Paul Mendell, and Highlands has a 75% stake in the patent applications.

The technique uses a pressurised gas rather than fluids as its basis for re-entering and fracture stimulating old onshore wells.

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.

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.

A couple of firms have patented technology that plug old cracks. One is thought to use corn starch to make re-fracking more effective.

Still, the jury is out over the effectiveness of this new technology. Mendell believes he has come up with a potential solution.

[g1g4lo] 30/8/2016 22:31

Report from today

Schlumberger, have patented what are called diverters that plug old cracks. One is thought to use corn starch to make refracking more effective.
Still, the jury is out over the effectiveness of this new technology.

It is against this backdrop that one should consider the transaction completed recently by London-listed Highlands Natural Resources (LON:HNR), run by oil industry veteran Robert Price.

On May 12 2015 it revealed it had acquired 75% interest in Diversion Technologies’ patent applications in an all-paper deal.

Diversion was founded by Paul Mendell, who created AIM-listed Iofina, which extracts iodine from the waste brine water generated by onshore oil producers.

His latest invention, called DT Ultravert, could offer a lifeline to America’s ailing shale industry. For Mendell has come up with a technique for refracking that uses pressurised 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 refrack.

And Mendell’s innovation can be deployed using all the current oil field equipment with no need for modifications.

The economics are compelling too. For, while it might cost US$8-$10mln to drill a well in the Bakken, a refrack would cost US$1.5-$2mln.

Understandably there is a lot of interest from major service companies.

Price told Proactive: “We have meetings set up weekly with major service companies and their clients.

“Refracking horizontal wells is the biggest challenge of the oil industry today.”

Highlands plans to commercialise Mendell’s breakthrough by charging licence fees initially, and royalty payments later. It may, at some stage, pick up its own acreage to refrack.

The next few months will be crucial for Highlands and the technology as the major service companies begin to use it in the field.

At this stage there are no guarantees it will work, although Mendell and chief executive Price are reasonably confident.

“Will it work on every occasion? Absolutely not,” Price says. “But if it turns the light on in a few basins this concept is still revolutionary.”;

The licensing and royalty model means that Highlands is likely to be a ‘capital light’ company that will require very little financial support from investors.

It might come back to the market to fund an acquisition of the projects at the geological sweet spot for the refracking platform, but this will be some way down the line.

If it succeeds in the field, and remember at this stage it is a big ‘if’ as the technique hasn’t been even tested, then Highlands has a truly disruptive technology on its hands.

It transforms the nature of oil field development – allowing companies to pause drilling activity at a point where the oil price makes it uneconomic, yet ensures they can produce oil profitably from historic or existing wells.

“Industry is really excited about this simple idea and they will spend the money trying it different places because the prize is the re-birth of an industry,” says Price.

“Fifty billion dollars [a year] is spent on fracking. If it turns out that injecting gas is a good thing it will be used in initial fracks and primary stimulation. Nobody will just frack – they will always use gas as well.”

Highlands Natural Resources (HNR) plans to drill two new wells in south-east Montana in the next 30 days after filing permits with state authorities.

London-listed HNR said the drilling programme for Helios Two will target natural gas and helium deposits.

HNR also said it had bought almost 30,000 acres in Custer County from two private lessors in separate deals worth about $100,000, subject to on-going title verification.

The firm’s total acreage position in the Helios Two prospect area will be about 105,000 acres following the two transactions.

Conversations are also on-going with several parties, including international industrial gas companies and oil and gas companies, who could become joint venture partners.

HNR chief executive Robert Price said: “I am pleased to report the continued efforts of the Highlands team in securing and enhancing its existing lease position in the Helios Two project, and in progressing it to a drillable status.

“Subject to receipt of permit and other approvals, we are now prepared to commence drilling and dewatering operations in order to validate the economics of potential natural gas and helium resources at Helios Two.”

[ch4p_85] 30/8/2016 18:16

The drop from 70p was only a retrace ;-)

[rick124] 30/8/2016 16:38

Great day yes, but just the beginning of this story.

[e j blythe] 30/8/2016 16:29

10 bag?

Heard it all before.

Great day though!

[rick124] 30/8/2016 16:27

Result will be known within a few days of tests hence the interest if tests are successful I would expect it to 10 bag from here.

[podium] 30/8/2016 16:22

Suspect it will just be a case of them commencing testing, finally. But results should follow quickly on from that. So time to be interested again, mainly due to volume traded today.

[regandharry5] 30/8/2016 16:01

Results due anytime,but didn't expect it to have this impact, has to be a leak.Rezults of tests could still be negative,or more time needed to evaluate what's been done so far.Hoping for positive but also being realistic.

[letmepass] 30/8/2016 15:52

Wow great volume tomorrow will be interesting and if news hold on

[letmepass] 30/8/2016 15:07

More delayed buys coming through