Highlands Natural Resour... Share Discussion Threads

[lobo] 20/4/2018 18:17

So its cash up front and no financial worries regarding DT and helios development, traded for the lion's share of East Denver.

Lets hope its worth it in the long run.

[lobo] 20/4/2018 18:06

Would have been nice to have had this at 7.00 this morning...


Highlands Natural Resources PLC East Denver Project Funded For A Further 6 Wells
20/04/2018 5:45pm
UK Regulatory (RNS & others)

Highlands Natural Resources (LSE:HNR)
Intraday Stock Chart
Today : Friday 20 April 2018

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RNS Number : 6936L

Highlands Natural Resources PLC

20 April 2018

20 April, 2018

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

East Denver Project Funded for a Further 6 Wells

Highlands, the London-listed natural resources company, is pleased to announce that the East Denver Niobrara shale oil and gas project in Colorado (the "East Denver Project" or "East Denver") is now fully funded for at least six additional wells, to be drilled by 26 April 2018. This is pursuant to an Acquisition and Development Agreement (the "Agreement") with True Oil LLC ("True") entered into on 19 April, 2018.

Under the Agreement, Highlands receives an immediate payment of US$5.0 million and retains a 7.5% carried interest in all current and future East Denver wells. The entire capital costs of future East Denver wells will now be funded by Highlands' partners.

True Rig #33 has been mobilised to the East Denver location and will commence pad drilling in the coming days. The wells will be spud on the northern drilling and spacing unit ("DSU") bringing the total number of East Denver wells to eight.

The terms of the Company's previously announced funding agreements dated 7 July 2017 and 23 August 2017 are effectively replaced with this new structure, and the Company receives a further US$430,492 in up-front cash as part of that amendment and replacement. Highlands has divested 49.5% of its 57% working interest in the Wildhorse and Powell wells and will assign 49.5% of its 57% interest in future East Denver wells to True.

True has the option to assume operatorship of the East Denver project, and will advance the project using its significant operational and financial resources. With this in mind, today's Agreement paves a clear path to full field development of East Denver, starting with six new wells and potentially extending up to 24 total wells across the project's three DSU's.

Robert Price, Highlands' Chairman and CEO, said: "This transaction facilitates the rapid development of our East Denver assets and establishes a long-term relationship with one of the most respected names in the American oil and gas industry. The carried interest received from True's rapid drilling plan will provide lasting cash flow and value to Highlands, and constitutes a strong financial base from which Highlands can advance an exciting portfolio of projects.

"Long-term investors will recall that True Rig #33 successfully drilled the entirety of our first two East Denver wells, Wildhorse and Powell in 2017. True's technical familiarity with the East Denver project and our successful history together was an important factor in Highlands' decision to partner with True for the long-term development of the East Denver asset."

[substp] 20/4/2018 08:00

Good cover of the Investor Forum last night on LSE

also

Busy Busy Busy......... :-)

[cal57] 20/4/2018 07:45

Unfortunately for us the rise in the oil price these last months hasn't made a bit of difference to us. In fact, nothing has.Lets hope the market sees sense and things Change soon.

[w1ndjammer] 19/4/2018 17:25

Just a guess, but with this funding they are close to agreeing, there must be some
shares involved, if only as a sweetener. so maybe forward selling or something.

Can`t see any massive dilution as our man at the top has a lot of skin in
this one.

anyway not long to wait now, then true value should be seen, as someone said
should be easy 100 mill m-cap even double that would not look out of place
when the ducks line up......


WJ.

[bobby1904] 19/4/2018 14:24

....just don't get the selling here? Totally confused. Another great RNS today. All financing discussions are 3rd party external. Producing lovely cash flow with more to come. Can only think misguided & misinformed holders expect a placing BUT if so they are not looking at the detail properly!! This should be over 30p on any analysis!!

[lobo] 19/4/2018 09:24

Just sell the company for $100m ...$4/sh ...works for me :)

...sorry used mcap ..so maybe a bit higher sale price!

[cal57] 19/4/2018 08:30

They can't hold it back forever,value will out in the end.

[cal57] 19/4/2018 08:25

Yep,looking good for the future , a little more patience required .

[w1ndjammer] 19/4/2018 08:25

must be the best valued oil co in the market.........

WJ.

[substp] 19/4/2018 08:20

Finance facility covers a total of 24 wells and is paid out as they drill them. Come on peeps this is old news.

[podium] 19/4/2018 08:11

Very nice update, but sure I think reference to "third party funding" is therefore likely well known and is what has been holding us back for a long time. By why they are choosing that route needs some explanation as I was under the impression they had a finance facility in place.

[chesty1] 19/4/2018 08:09

Finally some news let's see if it gets sold into again

[btgman] 19/4/2018 08:05

Excellent presentation I don't really see where current market cap comes from but I would have thought the most conservative valuation would be 10% of the NPV10 of the three projects circa £42m circa 36p per share.

[bobby1904] 19/4/2018 08:05

I take that as external funding like the $58m rather than share placing...Based on this RNS i see that as very feasible especially with oil at $70 p barrel!!!

[cottoner] 19/4/2018 08:01

What fundraise?

From today's RNS

Robert Price, Highlands' Chairman and CEO, said: "This natural gas purchase agreement will be highly accretive to the East Denver project, which has already demonstrated its ability to perform at a remarkable level of productivity and efficiency. This, together with the superior production rates we have announced in comparison to other wells in the region, will position us to conclude a third-party financing to advance our drilling programme in the near term.


The Agreement adds valuation upside to Highlands' assets by allowing the monetisation of both oil and natural gas production volumes on a long-term basis and therefore represents an important step forward in the development of East Denver, as it paves the way to finalizing Highlands' funding for drilling and completing additional East Denver wells.

[lobo] 19/4/2018 08:00

Its all here...

[bad gateway] 19/4/2018 08:00

I thought the same. Took it they did this

Highlands has spud conductor casing on six new wells on the northern Drilling and Spacing Unit ("DSU") ensuring that the Company remains in compliance with previously announced drilling timetables

To secure the leases they can't afford to drill yet?

[bobby1904] 19/4/2018 07:58

What fundraise? They are generating good income from production & have the $58m facility?

[substp] 19/4/2018 07:57

Thanks Garmon

[cal57] 19/4/2018 07:53

Looks like it's the further fundraising holding the share price back .

[regandharry5] 19/4/2018 07:28

Good positive RNS .Onwards and Upwards.