Resources play Highland Natural Resources (HNR:AIM) is up 37.3% to 16.3p as it reveals it plans to conduct first commercial tests of its DT Ultravert refracking technology in Colorado this June.
The company joined AIM in March 2015 and was initially pitched as a consolidation vehicle in a bombed out oil and gas sector.
It has since changed direction. In May 2015 it completed a reverse takeover of Diversion Technologies, thereby gaining 75% ownership of the DT Ultravert technology. It subsequently entered a licensing deal with US oil services giant Schlumberger (SLB:NYSE).
A third party technology report says the technique could allow for the re-fracking of existing wells to increase production without the need for costly new drilling. The first test of these claims is expected with a pilot in a well in Colorado’s Piceance basin.
Highlands says it is in discussions with more than 20 US exploration and production outfits. Management have previously said they expect to monetise the technology through a mix of up front licensing fees, ongoing royalties and eventually by acquiring producing assets.
