Sign up Australia
Proactive Investors - Run By Investors For Investors

‘Major milestone’ for Highlands Natural Resources as it kicks off drilling at East Denver

Highlands will first drill and case the Wildhorse well before immediately shifting the rig to drill and case the adjacent Powell well
oil wells
The project is located within a couple of miles 'highly productive' horizontal wells

Highlands Natural Resources PLC (LON:HNR) said it has achieved a “major milestone” after it started drilling the first well at its East Denver shale oil and gas project in Colorado.

Only a few weeks ago, Highlands raised almost £3mln of fresh capital to fund that first well.

READ: Highlands lands funds for East Denver drilling

Given the “strong shareholder uptake” in an open offer later on in July – which was not previously included in the group’s budgets – Highlands has now been able to spud two wells at East Denver.

It will first drill and case the Wildhorse well, designed to target the Niobrara B horizon, before immediately shifting the rig to drill and case the adjacent Powell well, which targets the Niobrara C formation.

At this point, Highlands said it will then continue drilling out the remainder of the deeper Powell well, which will allow it to gain valuable data about the shallower Wildhorse on the way down.

Drilling and casing Wildhorse is expected to take several days, while it will take another day to walk the rig over to Powell where drilling operations will last for another two weeks.

Drill programme within two miles of ‘highly productive wells’

“This is a major milestone for Highlands,” said chief executive Robert Price.

“Given that our drilling location is located within two miles of highly productive horizontal wells in the Niobrara shale coupled with our third-party engineers' confidence in East Denver's reserves, we are incredibly excited to see the result of our first well in a potential 24 well drilling programme.

“If successful, we look forward to delivering our shareholders' first oil, first gas, and first revenue.”

Certain professional advisers to be paid in shares

In the same stock market announcement, Highlands said some of its professional advisers have agreed to be paid for their work in shares.

This allows the company to devote more of its cash resources to the project, Highlands added.

Shares were up 2.9% in late afternoon trade to 21.6p.

--Updates for share price-- 

View full HNR profile View Profile

Highlands Natural Resources Plc Timeline

Related Articles

Offshore oil operations, North Sea
August 14 2017
Drilling is now underway on the Statoil-led Verbier exploration well, which has the potential to be a game changer for AIM-quoted Jersey Oil & Gas.
picture of wind turbines
June 12 2017
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.
September 21 2016
Cadogan has now stemmed its losses. The next step will be a real turnaround

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use