|Highlands Natural Resources PLC
||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Highlands Natural Resources Share Discussion Threads
Showing 12001 to 12024 of 12025 messages
|35p by COP|
|Hoping for 40p before the weekend.|
|Finished on the highs of the day, which bodes well for continued rally tomorrow.|
|Just joined in, encouraged by the momentum. Wish me luck!|
|Moving up nicely I see.Hope ya all happy...50-70 target short term|
|32 paid.... heading north!|
|She's gonna blow!|
|30p finally found again. a slow climb up but at least it is up|
|When will news arrive?
Timing is difficult to ascertain but I look at it this way. The original plan was to have started construction on 1st April and expected to complete the first drill by May 1st with this 16 well pad as per the application.
Well the construction looks like it started on 10th so expect the first drill to be completed by 10th May.
I was informed at the AGM that each well took around 3 weeks so in theory, the first spud has happened or about to happen. Clearly the trading yesterday was produced by Fadec's research predominantly but the round sells were being pushed through which I feel is pointing to news due very soon.
I would expect news this coming week but I have been saying that for months.
I suspect the non dilutive funding, confirmation of the plan to perform 48 wells on the current acreage and an updated CPR report for East Denver together with the first spud date.
We may well get confirmation of the Injection well to be drilled in May and a new location for Eagle 2 with a target drill date. I am also hoping for a new larger commercial contract for DTU & PWP and confirmation that these projects will be progressed quicker via a small forward sold placing of £5m.
This will resolve all issues with all 3 projects and all fully financed.
Then we can wait for more information around 10th May after completion of the first drill on the 16 well pad.|
|Deviated drilling plans
With my previous post of the well location certificate being signed of by Brian C Ritz, the Colorado Licensed Professional Land Surveyor, the well lengths have also been agreed. Fadec noticed this amendment a few months ago but just clarifying the amendment is accepted.
Hagar well has a length of 10,046'
Citadel well has a length of 10,133'
|Well location certificate signed
2 well location certificates for Hagar & Powell wells signed on 11th April, the day after construction started.
These 2 wells should be drilled first and will be keeping an eye on the Citadel & Wildhorse wells for well location certificates
|MKT cap of around 50 mill wouldn't be silly.|
|fantastic looking chart..roll on next week.|
|Where do you think share price could get to over next month, 6 weeks?|
|May be it is quiet as Family Values who used to just talk to himself on here sold up here on April 10th and bought SAVP. Hence it is quiet.
Also cloudburst also sold up in March who was the other poster who was on here
Think both made a mistake but all looking good here for next week.
Expect non dilutive funding, first spud date as the construction for the 16 well pad started on April 10th|
|This is about to blow.|
|quiet in here considering the price action....|
|Whats this helius producing news im hearing ??|
|chart is very bullish for a steep rise in the coming day or two.|
|Why do you say that, Duxy?|
|Interesting day ahead....|
|My views on the East Denver Project
Looking at the CPR report for East Denver
Wells 1 to 6 - 6 months using 1 rig from April to September 2017
Wells 7 to 24 - 9 months using 2 rigs from October 2017 to June 2018
Wells 25-48 - 6 months using 4 rigs from July to December 2018
This falls in line with the RNS dated 16th December 2017 saying "The Agreement also provides Highlands with a Continuous Drilling Option through to 31 December 2018"
There may be a slight delay by a month or so but this was planned a long long time ago.
With these 48 well planned by HNR with 3 x 16 well pads on each of the 3 x 1280 acre sections, the potential seems way beyond what many people are seeing in my view.
With 24 wells, the NPV of $ 124.6m will increase for a few reasons. The oil price is higher this year than in the CPR report and expect this to continue. They are saving up to $500k per well saving up to $24m on drilling costs alone. Also as Fadec has identified that the wells have increased from 9,000' to 10,000' and let us assume all wells will be 10,000'
$124.6m x 2 for 48 wells = $249.2m
Saving of $24m for drilling costs = $273.2m
Increase in well length x 11.1% = $303.2m
Without any change in oil prices an NPV of $300m is easy to identify what the technical value of this project is.
From the September presentation, 50% of lifetime production in first 2.5 years is based on just 6 wells. Now I have looked at extrapolating this in line with the above drill timing and 50% of lifetime production for 48 wells will be in 3 years and 3 months.
So by August to October 2020, these 48 wells will have produced 8,740MBBL gross oil and 25,296MMCF gross gas.
Now how long do you think HNR will have an MCap of £20m with just on this project alone having an NPV10 of $300m or £240m.
Looking at HUR that do not plan to start production until 2019 with an NPV of £271m for their Lancastrian project, they have an MCap of £697m but their funding of £52m has been sorted.
Just wait for our non dilutive funding to be sorted soon. Now I see 100m fully diluted shares in issue but I cannot see why over the next year or so, we are not valued at around £500m just on this project alone, can you? So the share price of £5 is easily reached in my view.|