Completes Oilfield Technology Acquisition
26 May 2105
Highlands Natural Resources ('Highlands' or 'the Company')
Completes Acquisition of a 75% interest in Diversion Technologies' Patents Portfolio
Highlands Natural Resources, the London listed oil and gas company, is pleased to announce that the agreement in respect to its all share acquisition of a 75% interest in Diversion Technologies' current patent applications, in the US, UK, Canada and globally, has been signed. These patent applications cover a new well stimulation (fracking) diverter technology known as "DT Ultravert" which the Board believes represents a highly disruptive force in the market, and has the potential to create a transformational shift in the US$50 billion per year fracking industry. The Acquisition will complete on Admission of the new shares.
DT Ultravert diverter technology enhances well output by directing hydraulic fracking fluids to unstimulated portions of the formation, thus releasing previously unrecoverable hydrocarbons at a fraction of the cost of drilling a new well. DT Ultravert technology is based on an inert gas form, in contrast with current diverter technologies which are largely based on solid forms.
"I believe this IP represents a timely breakthrough that the industry may adopt quickly, and in wide-ranging applications. Its beauty resides in its simplicity and addresses the problem at its source, inside the reservoir."said Diversion Technologies' founder and inventor Paul Mendell.
Diversion Technologies (DT) is in licensing discussions with major recognised oilfield service companies pursuing agreements generally structured around DT - and thus Highlands - receiving initial licence fees per oil and gas basin along with retaining royalties on a per use basis. In addition to these initial licensing fees, DT and Highlands will seek royalties of the total fracture stimulation cost per use of the technology.
Highlands CEO, Robert B. Price, said, "This transaction has the potential to position Highlands at the forefront of a revolutionary change in the multi-billion dollar fracking industry and accordingly we are delighted to have completed this low cost all share acquisition. In the current oil price environment, the US onshore oil industry is in relative crisis. The need to lower costs is at the top of oil & gas companies' agenda with new technologies being sought to regain competitiveness within the industry on a global basis.
"Having recognised the huge revenue potential for this type of diverter process, major oil and gas services companies are prime candidates to license an effective technology to satisfy industry's demand for a breakthrough in fracking and re-fracking techniques. Over the coming months we will be testing DT Ultravert technology on various prospective formations in the US."
Acquisition Terms
Under the terms of the Highlands / DT agreement, Highlands will acquire 75% of all current and future patent applications filed by DT in exchange for 1,900,000 Highlands' ordinary shares ('the Fee Shares') and 30,000,000 warrants, exercisable at 25p (conditional upon all necessary regulatory approvals and appropriate disclosures or documentation being made to the UKLA). These warrants will be exercisable from three months to three years post completion of the transaction pursuant to the proposed contract.
Application has been made for the Fee Shares to be admitted to trading and Admission is expected to become effective and dealings commence at 8.00 a.m. on 29th May 2015 ('Admission'). On Admission, the Company will have 21,988,500 Ordinary Shares in issue. The 21,988,500 Ordinary Shares includes the issue of 98,500 shares to advisers in partial settlement of fees rendered to date.
**ENDS**
For further information, please visit www.highlandsnr.com, or contact:
|
Robert Price |
Highlands Natural Resources plc |
+1 (0) 9183617000 |
|
Nick Foster |
Smithfield Partners |
+44 (0) 207 832 0452 |
|
Lottie Brocklehurst |
St Brides Partners Ltd |
+44 (0) 20 7236 1177 |
|
Elisabeth Cowell |
St Brides Partners Ltd |
+44 (0) 20 7236 1177 |
This information is provided by RNS
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