Highlands Natural Resour... Share Discussion Threads

[money maker1] 18/5/2017 14:47

G1g4lo I think we would both agree that HNR has many potential revenue streams, which has to be good from an investor point of view.

DT Ultravert might not be their potentially bigggest earner but obviously the new patent approval this week helps derisk the company and adds value. It HAS already undergone some successful testing - with Laramie Energy, Schlumberger and Calfrac Well Services:

19/10/2016


which led to a further expansion agreement:

26/10/2016


Interestingly Laramie have recently purchased acreage with 5000 drilling locations.

www.ogj.com/articles/2015/12/laramie-energy-to-buy-piceance-basin-assets.html

[g1g4lo] 18/5/2017 12:55

June 12th

hxxps://cogcc.state.co.us/Hearings/HearingSchedule/HearingSchedule.cfm?Year=2017

hxxps://cogcc.state.co.us/documents/reg/hearings/schedules/dockets/2017/201706_Gen.html

[bad gateway] 18/5/2017 12:46

Good post G1g4lo, when are the hearings due? 5kbpd stacks up well against co's such as zen and the risk seems no worse.
May have a read up and a dabble again, nice bowlish chart too.

[g1g4lo] 18/5/2017 12:07

Well you are looking at the MCap.

Looking at DTU will take years to generate this money but short term East Denver will provide a large amount of revenue.

With the plans submitted for hearings to perform 48 wells on the current acreage, this project for case 1 will be valued around 300m dollars, more than twice the value of DTU.

A patent does not prove DTU works but protects it if it does. However with East Denver, multiple wells in this area have been drilled by ConoccoPhilips and their subsidiary Burlington which makes this project at very low risk project. It a case of how much production is achieved not if it is achieved.

With the plan to drill these by end of 2018 will generate 5,000bopd in the first year and 15,000bopd in the second & third year. This is where you need to look at what the MCap could be in 12 months time, my view is an share price of £5 fully diluted. But the share price will surpass £1 by the end of July this year which may well retrace prior to the next rise and then into the Helios success in H2.

The East Denver project is massive and walks all over DTU & PWP but would be nice if this product is proven in multiple geologies in multiple basins for both vertical & horizontal wells in a few years time when it could be then ready for a potential buy out.

In between, we have Helios which hopefully will prove to be financially viable in H2 with a middle valuation of 341m dollars which excludes the additional acreage, the Eagle Formation and the Helium content. The highest value without these items is still 1,225m dollars as per the CPR report. This is by far the biggest project if successful and will follow up the short term revenue project of East Denver.

DTU is nice but will follow East Denver and then Helios if successful in my opinion.

[money maker1] 18/5/2017 09:51

Obviously it has value but there are many factors that affect share prices on any single day. It's also info in the public domain as it was released by the patent office. No confirmation needed.

[money4me] 18/5/2017 09:05

yes but the market seems to be giving it no value and the company are saying nothing so they don't consider it price sensitive

[hottingup] 18/5/2017 09:03

The patent approval is genuine enough.

[money4me] 18/5/2017 08:41

seems to be rather muted response and nothing from the company. which says to me there is something else going on or it is not as straightforward as we would hope

[money maker1] 18/5/2017 08:19

The Competent Persons Report in Jan 2017 valued their DT Ultravert at 78 to 135 million dollars which is more than the current market capitalisation of the company.

[regandharry5] 17/5/2017 19:49

A patent grant for DTU would be worth a lot of dosh.

[regandharry5] 17/5/2017 15:29

If this is true,why no RNS.

[gary38] 17/5/2017 12:53

Money makerYou posted on HUR was there connection with HNR news.

[money maker1] 17/5/2017 12:34

DTU can be used for protecting existing wells from 'bashing' and enhancing well productivity by facilitating the re-fracking of horizontal wells.

HNR already have granted a license agreement to Calfrac to accelerate marketing of DT Ultravert and create potential for long-term recurring revenue streams.

HNR is in discussions with Great Western Oil & Gas Co. in Denver, Colorado to re-frack between 5 and 30 wellbores.

[money maker1] 17/5/2017 12:22

Just released - Approval of HNR's patent for DT Ultravert (DTU) - That is HNR's commercial future secured regardless of whatever else happens.

Must be worth at least 70p now.

[g1g4lo] 17/5/2017 11:50

Also links to Notice of Allowance confirming it

[burdetth] 17/5/2017 11:25

https://mobile.twitter.com/fadec92/status/864769231367401472Looks like dtu patent has been passed come on hnr give us an rns

[money4me] 16/5/2017 10:38

when is actual work and then results expected. They seem to be getting it lined up for a big programme

[money maker1] 16/5/2017 10:26

The schematic below (Figure 24) shows the anticipated completion and stimulation strategy for the proposed development of the HNR acreage in the LBR prospect area (as presented by HNR). The suggested volumes of frac fluid and proppant lie within the ranges seen in previously drilled long reach laterals in the LBR prospect area.



Completion.

2 miles Horizontal Wells.
Cemented liner with Frac String.
30 to 50 Stages Perforated.
175' Spacing Plug to Plug.
5 Clusters Per Stage.
Shots Set Up For Diversion.

With Stimulation an aggressive Breaker Package is used, this is better for flow back and well clean up to turn the wells into production quicker!

[money maker1] 16/5/2017 10:26

Borrowed from Fadec92 on L-S-E:


This is how the project progressed and now Highlands are developing the Multiwell pad in Arapahoe for the first 4 Extended Range Laterals 16 in all, and we are waiting for the Inspection of the area to be approved and looking for the first drill to start!

1. 25 July 2016 - Denver Julesburg Basin Farm-In Agreement

2. 16 Dec 2016 - Further Farm-in Agreement In East Denver Oil & Gas Project

3. 19 Dec 2017 - Extension of East Denver Farm-in Agreement with Renegade

4. 10 Mar 2017 - Further East Denver Acreage Acquisition and Expanded Agreement with Renegade

5. 10 Apr 2017 - Approval of Permits and Update on East Denver Drilling Programme

1.Drill up to six horizontal wells in acreage prospective for the Niobrara shale formation and 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, COP leases that have been delineated by producing horizontal wells ranking among the most productive in the Denver Julesburg Basin.

2.New farm-in with ConocoPhillips enables drilling on three additional sections directly offsetting the original three sections that Highlands farmed into from Renegade.

3.Renegade extend the initial drilling timeline outlined in its original farm-in so that it can refine its drill programme with XLR Extended Lateral Reach Well.

4.Direct control of the lease in the hands of Highlands also now holds significantly greater control and flexibility in the timing and sequencing of drilling operations, which facilitates 'pad drilling' of 16 XRL Wells.

5.Highlands confirms that the Colorado Oil and Gas Conservation Commission last week approved the Company's permits for a surface location as well as the Company's first four applications to drill.

[lodgeview] 15/5/2017 13:33

Let's put the 20's behind us. Ridiculous price right now. Only a matter of time before the market wakes up to this ludicrously undervalued share.

[duxy786] 12/5/2017 08:07

Coiled spring IMO. Ready to take out 30p and bead north to 40p.

[money maker1] 11/5/2017 10:15

Its now at the stage where its looking interesting. I see Cenkos initiated coverage of HNR in February with a 'buy' recommendation and 68p valuation with further potential upside to 215p.

“With sentiment apparently on the rise, we believe it offers investors access to significant upside via a combination of disruptive IP, near-term production and exciting new resource plays.”

“We see the active forward work programme – which includes further drilling at Helios Two, development at East Denver and further DTU trials - as presenting a number of potential valuation catalysts over the next 12 months,” Allardyce said.

Allardyce suggests there’s potential for "very substantial upside."

[lodgeview] 10/5/2017 13:13

Can't believe with all the potential we are under 30p!

[letmepass] 09/5/2017 21:07

Love the commitment and research here. Not in anymore from a long time ago but I hope you make it..

[substp] 09/5/2017 18:20

They put a lot of money into that infrastructure already.