Highlands Natural Resources has issued an operational update on recent progress at its onshore US projects.
- Testing of DT Ultravert in the Piceance Basin, U.S. has commenced in cooperation with Laramie Energy ('Laramie'), Schlumberger Limited ('Schlumberger') and Calfrac Well Services Corp. ('Calfrac')
*Focused on testing the application of DT Ultravert to protect existing wells from "bashing" ('Parent Well Protection Campaign')
- Independent Probable Reserves Report received on East Denver Niobrara farm-in project indicating NPV10 of US$21.5 million with an IRR of 92% and a payback in approximately 11 months for six horizontal wells
Highlands chief executive Robert B. Price said, "I am proud of the work completed by the Highlands team over the past several months. We are making good progress on the testing and commercialisation of DT Ultravert having commenced this Parent Well Protection Campaign.
"In parallel with testing of the technology, Highlands has advanced conversations with Schlumberger regarding an extension of the original licensing agreement with enhanced optionality for Highlands if Schlumberger crews are unavailable for any reason to complete a DT Ultravert project in the future.
"We will provide the market with additional updates on our progress with the Schlumberger license extension in due course.
"It is also very positive to receive a third-party engineering report indicating attractive economics at our East Denver Niobrara project, which we continue to pursue in tandem with potential project finance partners. In our third significant project, we announced yesterday the commencement of drilling operations at our Helios Two natural gas and helium prospect in Montana."