Licence Agreement with Schlumberger

RNS Number : 1664A

Highlands Natural Resources PLC

25 September 2015

 

Highlands Natural Resources plc ('Highlands' or 'the Company')

Indicative Terms for a Licence Agreement with Schlumberger in respect to DT Ultravert

Highlands Natural Resources, the London listed oil and gas company, announces that it has signed indicative terms for a licence agreement with Schlumberger Technology Corporation ('Schlumberger'), a 100% owned subsidiary of Schlumberger Limited, the world's leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry, in relation to Diversion Technologies, LLC's ('Diversion') proprietary "DT Ultravert" re-fracking technology.  Highlands owns a 75% stake in Diversion's current patent applications both in the US and globally.

The indicative agreement provides that Schlumberger will evaluate DT Ultravert by assessing the data gained from five field trials within one year.

Highlands CEO Robert B. Price said, "Highlands will continue to work closely with Schlumberger and the engineers and geologists on our Advisory Board to perfect the DT Ultravert technology by designing fracs in several basins throughout the world. Trials will be undertaken to demonstrate its effectiveness, which will provide us with valuable data regarding its application.

"We believe that if successful, DT Ultravert could represent a major disruptive force in the market and generate significant future revenue for Highlands."

About Diversion and DT Ultravert

Diversion is a well stimulation technology company based in Denver, Colorado, USA. Diversion's pending patents involve a method for oilfield stimulation (fracking). Specifically, Diversion's diverter technology, for which its patents are pending, is called DT Ultravert. Diverters are used by the oil and gas industry as a method of enhancing conductivity during fracture treatment by diverting fluids to untreated portions of the reservoir. The oil and gas industry has been searching for a breakthrough in diverting technology and Diversion believes that DT Ultravert may be a solution.

Where old diversion technologies typically divert near the well bore, DT Ultravert penetrates into the reservoir and diverts from where oil and gas have already been produced. The DT Ultravert process injects gas into the depleted area of the reservoir and re-pressurises the area, forcing the refracture fluid to divert to under-depleted areas. It is anticipated that Nitrogen will be, at least initially, the most commonly utilised gas employed by the technology. By diverting the fluid to previously untouched portions of the reservoir, the Directors believe that the re-stimulation will be far more effective. The process utilises existing oilfield service equipment for easy deployment anywhere in the world. Unlike conventional diverters that likely leave behind damaging solids in the reservoir, DT Ultravert uses non-damaging gasses that will easily flow back when the well is put on production.

On 25 May 2015, Highlands entered into an agreement with Diversion to acquire a 75 per cent. interest the intellectual property associated with DT Ultravert, including in any revenues arising from the commercialisation of the patents and all future patents which may be developed relating to DT Utravert.

**ENDS**

For further information, please visit www.highlandsnr.com, or contact:

Robert Price	Highlands Natural Resources plc	+1 (0)  918 361 7000
Nick Tulloch	Cenkos Securities plc	[phone]
Neil McDonald	Cenkos Securities plc	[phone] / [phone]
Lottie Brocklehurst	St Brides Partners Ltd	[phone]
Elisabeth Cowell	St Brides Partners Ltd	[phone]

 

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