Highlands Natural Resour... Share Discussion Threads

[cotton4] 14/1/2019 10:56

Current revenue £1.4 from 2 wells. Equivalent to £5.6m from 8 wells. This should cover overheads (was £6m expected to reduce in second half). Given "robust" revenue streams, development of more wells likely. Also nitrogen element still to be developed.

[ken chung] 14/1/2019 10:45

This will make a fine short.

[bobby1904] 14/1/2019 07:53

RNS. Producing from 8 wells at E Denver now! Think our share price is totally oversold. I'm not saying we should be 30p+ but 10p is absolutely out of kilter with the company's asset base.

[superg1] 07/1/2019 08:16

Hey ho

At no time in results or other news did they give an indication that the original wells stopped producing oil (revenue) 5 months ago.

Yet on 2nd Jan they say one has now resumed but not the other yet.

So they didn't want to tell the market about the suspended production, funny that. Happy to say the exciting things but not the negatives.

[bobby1904] 02/1/2019 16:25

Massive oil price jump today c.8% in last couple hrs!! Where's the reaction here? We're a producer. Plenty sell when oil price drops but no buying when it spikes up?

[substp] 31/12/2018 09:20

Interesting to note that on the COGCC inspection dated 8/28/18 it was noted that the "Gas Plant was being dismantled"..... I assume this eliminated collecting NGLs onsite. So there must have been another plan in the works for the NGLs like being sold to Bronco through their gas line (being built)

[nobullplease] 31/12/2018 08:37

Epiphany was running!

[superg1] 31/12/2018 08:33

Fade

So are those the spacings then and no interference.

Both wells shut in back in August and have yet to be back producing as of the end of November.

Both wells based on their figures seems to have a material drop in daily production compared to the previous months and then were shut in. This seems to be around the time other wells were being fracked.

There is no indication at all in news by HNR that the wells were shut in.

They released news about the falling share price on 20th November and said

"Highlands continues to generate revenues from its operations at the East Denver Colorado shale project"

No mention that the only producing wells were shut in 2 months prior, so in theory no they weren't producing revenue there at the time of the news.

The share price has been falling and not mention of wells being shut in for months

[fadec92] 31/12/2018 05:34

A perfect example of the correct well spacings in the area was the first 2 wells that the company drilled (wildhorse and Powell), so if there was no issues with well interference on a 660ft spacings between a Niobrara B and C Formation on the first 2 then there would be no reason to suggest that there would be a problem with the other 6 wells on exactly the same spacing distances, surely this is commonsense!

In actual fact the distance between the 2 same Niobrara benches are 1320ft which is a great distance apart when other operators right next to Highlands pads have permitted wells of 330ft spacings, which Highlands believe their further apart 660ft is better and more economical wells for the Niobrara Formation in the Arapahoe area!

[superg1] 30/12/2018 10:37

Just saying it as it is using the published figures and a calculator.

If they are that close has well bashing hit the parent wells.

Time will tell, it’s odd there was no mention of shut ins which was months ago. The original wells did see a sudden drop pre being shut in.

[fadec92] 23/12/2018 17:54

You tryed the same tactic in July 2017 by looking like you know what your talking about by looking at the cogcc website, last time it was you doubting that the first 2 wells were not going to be high producing, but you were wrong!

This time you are declaring that you have found information that doesn’t match up, it is clear and straight forward the wells are in flowback/drill out plugs and will be producing soon on par will the other 2 high producing Powell and Wildhorse wells!

When the frack operation was being preformed wells close which have been in production have to be shut in because it increases the performance and also for safety reasons, the well head are only 20-10ft away so performing the work next to producing wells is not the saftest practice!

[superg1] 23/12/2018 13:51

IT;s also clear that the daily production rate dropped from over 200 to 140 and 124 on Powell and Wildhorse at the time of the fracs of the news wells and they were shut in.

What the reason is will out but HNR decided not to tell Antoine in. results that they would be or had been shut in.

Both Powell and Wildhorse followed a path of waiting on completion and then straight to production.

Grizzly Ouray and Buckskin have all gone from waiting on completion to shut in.

So just a case of waiting for the production rates now across all 8 wells. Hopefully all is well.

There is that question mark over why rates and Powell and Wildhorse suddenly dropped. Surely it must be to do with the completions and fracking of the other wells in the area.

[fadec92] 23/12/2018 07:55

It’s clear that the wells are as stated on COGCC which are:-

Drillout, Flowback, Bradenhead

The document date is 18 dec 2019

[nobullplease] 23/12/2018 05:05

hxxp://cogcc.state.co.us/weblink/DownloadDocument1.aspx?DocumentId=4685143

[superg1] 20/12/2018 10:34

On the new 6 wells

True oil are showing new wells in the HNR area 5S 64W 2 are already shut in after completion.


From Cogcc data.

This seems to contradict what HNR put out in the interims, the info would have been available.

The new wells are called Buckskin, Ouray and Grizzly


So Grizzy is in the same unit as Powell.



Powell and Wildhorse the original wells are shown as shut in on COGCC. All 3 of the new wells are shown as shut in.

The 3 wells not yet listed re production are Hagar, Thunder and Citadel.

They are all the new wells that True oil took on and HNR have the interest in.

I'm going by Cogcc data which shows all wells with production records as shut in.

[superg1] 20/12/2018 09:29

Interims 13th December

Drilling completed in July, although the fracking operations for the new wells, which started in mid-August, were unfortunately interrupted due to local water shortages. However, these have since re-started and flowback from all six new wells is expected this month. With this in mind we anticipate producing from a total of eight wells by the end of December 2018.

It seems to me they are talking about the 2 original wells too which were shut in months before the interim news. That's if the COGCC data is correct.

[superg1] 20/12/2018 09:21

Just checking in having not been here for some time.

Has it been mentioned that the original 2 wells have been shut in.

[kemche] 14/12/2018 17:02

Normal service resumed I see.

[kemche] 13/12/2018 11:09

"if it revisits previous lows in the coming months"

Something tells e you may be in luck.

[supercity] 13/12/2018 10:36

I have off loaded three quarters of mine today, I feel the company could well be one for the future but I was disappointed with today's news.I was pinning my hope on the eight wells providing significant profit next year but by saying""We are expecting to have eight producing wells on the project by the beginning of 2019 and, assuming the new wells perform in line with the first two wells, our 7.5% share of revenues will fully cover all of our overheads."It disappoints a little.I would have hoped they will provide significant revenue not cover overheads.Will keep the remainder for now and may look to buy back some if it revisits previous lows in the coming months

[bobby1904] 13/12/2018 09:07

Don't you worry about me I can take care of myself!

[cotton4] 13/12/2018 09:05

Secondly, although the sale was linked to the group restructuring its management team, the financial benefit of this reduction in payroll will not be fully apparent until the second half of the year. Going forward, the sale will enable us to reduce our overhead and operating expenditure requirements.