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Highlands NR secures purchase agreement with US pipeline operator
Highlands Natural Resources has secured a natural gas purchase agreement with a local pipeline operator for its East Denver Project in Colorado.
Highland's successful monetisation of the project's natural gas and associated liquids represents a further revenue opportunity for the Bromley-based firm which also added further upside potential to its assets and paved the way for the completion of additional wells, six of which already spud conductor casing in place.
Latest production figures place Highlands' East Denver wells in the top 3% of all wells in Niobrara region, generating net revenues of $3.8m for the firm in the first quarter.
Elsewhere, Highlands' DT Ultravert technology, designed to enhance oil production in horizontal shale wells in areas previously impacted by well bashing, has returned "compelling production and flowback data", demonstrating Highlands' "clear economic case" for application in horizontal and vertical wells.
Robert Price, Highlands' chairman and chief executive, said, "This natural gas purchase agreement will be highly accretive to the East Denver project, which has already demonstrated its ability to perform at a remarkable level of productivity and efficiency."
"This, together with the superior production rates we have announced in comparison to other wells in the region, will position us to conclude a third-party financing to advance our drilling programme in the near term," he added.
As of 1000 BST, shares had gained 4.14% to 22.65p.