Highlands Natural Resour... Share Discussion Threads

[new tech] 25/7/2016 15:16

The deal should happen quickly, particularly as they expect to start drilling in 2016. It also means commercial production and sales revenues in Q1 2017.Might do a deal with Conoco Phillips who are already operating nearby, and include an option to re-frac some of CP's finished wells using the DT Ultravert system.

[herschel k] 25/7/2016 14:40

OK, let's agree to disagree then.

My view is that HNR will be negotiating finance via a third-party, such that they don't pay anything at all.

Therefore, they also won't get the 80% back that they refer to; as some (probably quite a bit) of it will go to the third-party for stumping up the cash.

IMO, it's probably a deal that has a 50% chance of happening at all, otherwise they wouldn't have made the statement that "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."

H

[bad gateway] 25/7/2016 14:31

That doesn't negate hnr having paid the initial 250k to secure the contract,nor does it take into acct the fact they wouldn't have got the farm in arrangement or finance in the first place if they weren't able to demonstrate they were financially sound.

[herschel k] 25/7/2016 14:21

"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."

[herschel k] 25/7/2016 14:05

bg,

keep reading the RNS.

it's further down.

H

[bad gateway] 25/7/2016 13:59

Not what it says in the rns herschel?

"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"

[herschel k] 25/7/2016 13:44

bad gateway 25 Jul'16 - 13:33 - 7371 of 7371 0 0

eh?

today's deal isn't going to cost HNR anything.............

[bad gateway] 25/7/2016 13:33

and if the founder hadn't given up the rights to the warrants he couldn't afford to exercise himself todays deal would never have been possible.

[asusasus] 25/7/2016 13:27

Hugely undervalued IMHO. With lots of news coming our way on all fronts it's a ridiculous MC. If DT tech works (which IMO the BOD know it does already) this will fly. With POO and shale plays such as this approx. breaking even I think the BOD are going to use DT to reduce the costs for this play making HNR very profitable indeed. That is just for this shale JV alone.

[iglenn] 25/7/2016 12:21

Morgan...based on what.?

[morgan20] 25/7/2016 11:46

End of week target 60p. One month target 120p.

[new tech] 25/7/2016 10:53

HNR's market capitalisation just £10.5m at 29.5p. That is a bargain imo.

I have some nice gains with PANR and 88E. Will be switching more into HNR.

[city chappy] 25/7/2016 10:03

I like this a lot. Low market capitalisation. Clear paths to early commercialisation through 6 onshore wells adjoining Conoco Philips producing acreage in nice safe Colorado and Schlumber testing the DT Ultravert process which could revolutionise re-fracking. Add in the Helium and Uranium acres for extra derisking. Logic suggests it can only go up from here.

[herschel k] 25/7/2016 09:48

morgan20 25 Jul'16 - 09:29 - 7361 of 7361 0 0

Herschel, Don't read too much into it.

------------------------------------------------

There's only one way to read it Morgan.

The founder of the tech sold his warrants cheaply and early instead of waiting to see if the tech actually worked, which according to HNR, will happen before Sept 2016.........so he had to wait 2 or 3 months...........but no, he decided to cash in completely before the trials has even started.

Says it all to me.

It's why I sold the rest of my shares at 44p the day of that announcement, as soon as the RNS was released.

H

[morgan20] 25/7/2016 09:29

Herschel, Don't read too much into it. Diversion sold some of their their warrants cheaper because they didn't have the money themselves to exercise the warrants. Also HNR's share price fell from 75p to 30p where previously it was probably and quite reasonably expected to be well over 50p and heading towards £1.

Noteably, however (17/6/2016) "In return for accepting a lesser price for the first 10 million warrants, the options that the Institutional Investor has to acquire Diversion's remaining 20 million warrants have been re-priced in Diversion's favour. These warrants can be acquired at a price equal to 10 pence per warrant plus 50 per cent of any amount by which the Highlands share price on the day prior to exercise exceeds 51 pence. All other terms of the arrangements remain as previously announced."

I think we will see and pass that 51p pretty soon. Some talking about 200p which looks realistic to me.

Good news here today. This just gets better and better.

[dorset64] 25/7/2016 09:23

So its 'some wells here, some wells there' type of RNS. For me to re-invest I need more meat to these releases as, in this latest one, tell me exactly which wells they have farmed in to, the name of each one, exactly how many and for what length of time is there substantiated info for their past performance.

To invest on this news you need to know which well so you can look up the data on the US sites to see whether the wells had been drilled & pumped, drill & abandoned or just drilled & the operator ran out of money. The answer to these 3 Q's makes a huge difference to any investor.

[herschel k] 25/7/2016 09:14

"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."

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Be careful with this share folks.

Keep asking yourself why the founder of the DT Ultravert tech sold all of his warrants so early, and so cheaply.............

[new tech] 25/7/2016 08:45

Also HNR's DT Ultravert technique could increase production on the acreage.....

"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."

[bad gateway] 25/7/2016 08:12

Yes agreed they're putting the cash from the warrants to good use now , good to see the market appreciating this deal.

[molatovkid] 25/7/2016 08:08

This will rise now....a few shakes along the way, but this is great news.

[new tech] 25/7/2016 08:02

Low risk drilling program. Should be worth a couple of pounds.