logo-loader

Highlands Natural Resources strikes funding deal with services group to support Colorado shale project

Last updated: 00:50 24 Aug 2017 AEST, First published: 16:36 23 Aug 2017 AEST

Oil rig workers drilling onshore
Drilling got underway earlier this month

Highlands Natural Resources PLC (LON:HNR) saw its shares jump today on new it has struck a new third party funding deal to support its new drilling at the East Denver project in the Niobara shale, Colorado.

A number of the precise details were not disclosed, nonetheless HNR told investors that the new arrangement was with a “leading oilfield services company, with global operations and listed on the New York Stock Exchange”.

READ: Highlands Natural Resources updates on first two wells at East Denver project

Sitting alongside the company’s recently agreed funding deal with Raisa the new arrangement will fund upcoming drilling. According to HNR, the new arrangement covers the drilling and well completion costs for a minimum of four wells and a maximum of 24 wells – some pro-rata back costs are also included in the deal.

HNR said it will retain a 70% interest in the wells, though it will be responsible for funding 51.25% of the costs.

In late afternoon trading, shares in Highlands natural Resources were over 12%, or 2.75p higher at 25.25p. 

In July, the company announced a US$32mln funding deal with investment group Reisa. That deal was also designed to support new drilling activity.

Drilling operations now underway at East Denver

Earlier in August, meanwhile, drilling work started at the East Denver project and on Friday the company updated investors after completing the first phases of drilling for the first two wells (tagged Wildhorse and Powell).

"In the past month, we have secured investment into East Denver from a leading US private oil and gas investment company and now a leading oilfield services provider,” said Robert Price, Highlands chairman.

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

“Not only does this provide outstanding third-party validation of our East Denver Project but it positions Highlands to advance and accelerate our drilling operations there.

He added: "Drilling operations are now underway at East Denver, and we will continue our updates to investors in due course."

 -- Adds share price --

Highlands Natural Resources showcases CBD products ahead of UK launch

Highlands Natural Resources PLC's (LON:HNR) Nick Tulloch chats to Proactive London's Andrew Scott ahead of the start of sales of their cannabidiol (CBD) products in the UK this month. The oil and gas company made the move into CBD back in March this month. Tulloch says the first...

on 17/7/19