Significant Flow Rates Reported, Nitrogen Project
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY HIGHLANDS TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
21 June 2018
Highlands Natural Resources plc ('Highlands' or 'the Company')
Significant Flow Rates Reported at Kansas Nitrogen Project
Highlands, the London-listed natural resource company, is pleased to announce that it has confirmed a flow rate of 1,769 MCF/D. at its acreage in Kansas where it is conducting exploration for nitrogen. The test was performed on 48/100th choke flowing 1,769 MCF/D at 415 PSI. The initial 15-minute shut-in was 920 PSI. The Board is very encouraged by these results.
Gas samples have been collected for analysis and sent to an external laboratory, and the Company expects to obtain gas composition analysis in due course. Gas from previously sampled wells in the area have exceeded 95% Nitrogen.
These results follow the successful re-entry and re-completion of the previously plugged wellbore, Barret 1-14B, completed in the Cedar Hills formation. The high-pressure operation was completed without incident, with perforations set between depths of 2187ft and 2256ft.
The Company is aiming to test the Carlile shale using a low-cost exploration approach and is currently in discussions with a Kansas operator in order to obtain samples of the Carlile shale from their existing drilling operations for reservoir characterisation.
The Kansas operator is drilling a well to be completed below the Carlile shale and if successful, this arrangement will enable Highlands to obtain valuable scientific data regarding the Carlile shale while saving the cost of drilling a second well, thereby removing the requirement to drill the Charlie-1. Highlands would only be responsible for rig time during sampling operations.
Robert Price, Highlands' Chairman and CEO, said: "The significant nitrogen flow rates obtained are very promising. We look forward to updating shareholders regarding the laboratory results. Nitrogen can be used for a range of applications and demand for it is strong. With this in mind, we are pleased with the interest received from a range of parties."
***ENDS***
For further information:
Highlands Natural Resources plc
Robert Price +1 (0) 303 322 1066
Cantor Fitzgerald Europe
Nick Tulloch +44 (0) 20 7894 7000
David Porter
Redleaf Communications
Elisabeth Cowell
Fiona Norman +44 (0) 20 3757 6880
Notes to Editors
Highlands (LSE: HNR.L) is a London-listed natural resources company with a portfolio of high-potential oil, gas and helium assets and technologies. The Company's core projects include:
· Colorado Shale: having developed a horizontal oil and gas project targeting the East Denver Niobrara shale formation, Highlands retains a 7.5% carried interest in the project, which is fully funded and operated by Highlands' partners. East Denver is currently producing from two wells, with six additional wells currently drilling, and up to 24 wells can be drilled in total. Highlands is now developing plans to advance its 2,721-acre shale project in the Denver Julesburg Basin west of Denver.
· DT Ultravert: a re-fracking and parent well protection technology with four patents allowed and additional patents pending in the United States and internationally. Highlands is advancing commercial conversations with a range of oil and gas operators and service providers to commercialize DT Ultravert technology, potentially supported by its own 800-acre low-cost nitrogen exploration project in Kansas.
· Helios Two: a 220,000+ acre helium and natural gas prospect in SE Montana with drilling and assessment operations ongoing.
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