Highlands Natural Resour... Share Discussion Threads

[eringael] 23/4/2018 14:51

Hi windjammerIt's assumed it will be 3 at some stage as the intention is to rinse and repeat what they done at East Denver, some good feedback from Newanda and his chat with Mgt at UK investor show- see his posts on LSe

[w1ndjammer] 23/4/2018 14:35

only just got in range of a signal, so now got Fridays RNS, i can only guess
that our man must have something of great importance up his sleeve. Or this
deal doesn`t look so great.

And still the selling continues......

i think Schlumberger and DT will be in the mix.

RP always said we only need 1 of 3 to come good to hit the big money
well now its 1 of 2

WJ.

[chesty1] 23/4/2018 12:25

Killed the sp!!!! Didn't even know about the Friday rns until I logged in this am I have been away!

[bad gateway] 23/4/2018 11:19

The U.S markets sounds as ready for DTU as its going to get, would be timely to announce some contracts imo.

From schlums no's Fri..
However, production challenges in US shale are emerging that are linked to infill drilling well-to-well interference, the potential lower production of step-out drilling from Tier 1 acreage, and significant infrastructure constraints. It is, therefore, becoming increasingly likely that the industry will face growing supply challenges over the coming year and a significant increase in global E&P investment will be required to minimize the impending deficit.

[bobby1904] 23/4/2018 11:08

This is beyond bizarre!! Still don't understand what's going on here - share price ought to be powering ahead off back of all RNS's this year to date!!

[bobby1904] 23/4/2018 09:17

Yep. I feel like there's a large background seller for last 3-4 months. All RNS's have been so positive but market buying keeps getting soaked up by this seller...very irritating but also confusing where it is coming from? I am just gritting teeth & staying patient which I believe will pay off here in the end!!

[btgman] 23/4/2018 08:34

I don't think the market has grasped the RNS which creates a surprising opportunity. When we see some uptake on DTU this gets very exciting.

[bobby1904] 23/4/2018 08:05

The RNS after hrs on Friday was excellent. If worries about a placing were holding us back this has now been kicked into the very long grass. 6 new wells being drilled this week. $5.4m new cash in bank on top $3.8m net from oil sales in last Qtr + cost going forwards now fully funded by third party with HNR 7.5% carry. This share price must react now surely- over 30p needed to get closer to correct value reflection!

[podium] 22/4/2018 21:44

Further away than was previously thought Shirley.

[lobo] 22/4/2018 20:46

Could ask that question on any board for any company.

[carl19] 22/4/2018 20:43

We are cash rich now. Read the latest rns.

[shirley83] 22/4/2018 20:27

Wonder when next issue of shares is

[carl19] 21/4/2018 07:57

The more i read and think about the news, the better i like it. We have a very shrewd management who obviously know the benefits of this move, and how it fits in with helios, DTU and possibly more land to repeat again. We have no debt, cash in the bank, a massive helium project, a patented system that could transform the industry and i expect more news on the next step almost immediately as the bod are always three steps aheas.

[podium] 20/4/2018 22:31

Would rather they had kept a slightly larger slice of the pie, but removes dilution, adds funds and sticks a rocket up the bottom of East Denver, which was always a bit of an added bonus anyway. Hopefully the news will come thick and fast and they can progress Helios 2 and commercialise DT Ultravert (what most were here for to begin with).

[lobo] 20/4/2018 22:11

Agree, most investors want rapid growth and returns. Not many want to wait 5-10 years for value. This deal accelerates the time scales.

[carl19] 20/4/2018 21:48

Quicker overall development means income is unlocked faster.No risk if there are unforseen problems .Money to move DTU and helios on faster.Money to purchase further acreage.Steady reliable income for a long period.More focus on other two projects.Just some of the benefits.

[cal57] 20/4/2018 21:34

10 - 15% would have been a better deal for us .At first glance 7.5% seems too low.Suppose we'll have to wait till Monday morning to see what the market thinks.

[oilandgas1] 20/4/2018 21:24

Hmm .. is this a good deal .. I remain to be convinced..

Why did we sell out on good cash flow..sell off risk? Pay down debt?
7.5% seems small but of what size future Cashflow? The strategy shifts to Helios?

With more than 220,000 acres secured, Highlands is now one of the largest oil and gas lease holders in the State of Montana and in addition to the significant gas play we have identified, we remain excited about helium potential in the Muddy Formation where concentrations similar to the helium exploited at the USA's largest helium resource, The Hugoton Field, were indicated last year.



Latest production figures place Highlands' East Denver wells in the top 3% of all Niobrara wells in Colorado and has generated net revenues of US$3.8 million to 31 March 2018

-- The executed gas purchase agreement has paved the way towards the finalisation of third-party funding to drill and complete additional wells in East Denver. Negotiations are well advanced

[carl19] 20/4/2018 20:40

Calcs From lse poster.Today 19:49A few of my calcs. I appreciate there£s a lot of other things to consider but thought it would be interesting to forecast. Forgive the roughness, I£m on my phone on a coach scribbling oil revenue forecasts on the back of a ticket. Anyway for simplicity assuming a well pair starts flowing fully on the 1st of the month and the next well pair starts flowing fully on the first of the next month etc. Also they perform like our first two (i.e a 15% decline curve) $66 PoO and no gas sales (!). I get $2.4m to $2.7m coming to HNR for 6 new wells and 2 existing wells 4 months into their decline curve from the first 6 months of production. Obviously no gas sales so let£s call the conservative. All without spending a penny, 16 more wells left, plus that£s only the first 6 months, they£ll keep going for a while. And don£t forget about that $5m

[honestmarty] 20/4/2018 20:28

That values our residual interest at just 700 thousand dollars?

[honestmarty] 20/4/2018 20:27

I'm really struggling with this one.

We handed over 49.5% of ED for 5 million dollars?

How much have we spent on it to date?

[honestmarty] 20/4/2018 19:39

Can anyone tell me how much money was spent on East Denver to date?

We get 3.5 million pounds back plus hopefully 7.5% of something

But how much have we put in over the past 2 years?

It wasn't like 10 or 12 million was it?

[eringael] 20/4/2018 19:34

Was a bit taken a back initially but this is a good deal in terms of a 7.5% return for nowt with cash upfront, ED was never the future of the company so guess they may have progress on Helios and DTU to come soon, guts Of £8 million cash with guaranteed future profit and other exciting projects for £25 million mcap

[regandharry5] 20/4/2018 18:58

I think they left it till after hours to make the MMs sweat over the weekend.

[bobby1904] 20/4/2018 18:39

On balance this sounds bloody good! They already had $3.8m net revenue from first 2 wells. Now they get $5.4m up front in cash & continued carried interest for 6 more wells which will give great further cash flow BUT with no cost to them! Then another 24 wells after..!! + value of DT Ultravert /Helios. Their mkt cap is only in £20m's. This is why share price is way undervalued imo!!