Please view our latest video to find out more about our
nitrogen and related gas asset in Kansas:
Work at Highlands’ East Denver Project is making solid progress with the initial production from the six new wells of the project scheduled to start before the end of December 2018. Fracking operations are now complete. As explained above, this represents arguably the most significant milestone in our history as, for the first time, our projected revenues are expected to cover our overheads for the coming year.
Highlands is building its reputation across the US oil and gas industry as enhanced oil recovery specialists. The Company’s activities are focused on commercialising and monetising its enhanced oil recovery portfolio, which is comprised of:
Following our initial 800-acre acquisition at the end of May 2018, we commenced discussions with the State of Kansas Corporation Commission Conservation Division, who gave us the opportunity of re-entering and re-completing an existing wellbore within its landholding. Flow tests from the Barret 1-14B well, announced on 21 June 2018, indicated high nitrogen purity levels.
Hydraulic fracturing operations, which unlocked the potential of shale oil and gas trapped in tight formations of the ground, usually require vast amounts of clean water. The water used in these operations is then recovered alongside the hydrocarbon products extracted. The consequence is that operators can be left with considerable quantities of water to dispose of at the conclusion of each stage of their operation.
Highlands holds leases of over 200,000 acres in south-eastern Montana in an area that it considers to be prospective for natural gas and helium. A January 2017 Competent Person’s Report for the initial 69,120 acre lease holding first acquired by the Company indicated a “best estimate” NPV10 of US$341 million for a natural gas development project alone, with no account given for any potential helium resource (which was subsequently established by Highlands to be present in concentrations of 0.31% to 0.33%).
"Highlands enters the new year in a strong position and, as our portfolio of operations develops, we look forward to updating our shareholders on our progress."
"In the meantime, two of our new projects, developed during the period under review and funded from the proceeds of our East Denver Project, have already begun to make a revenue contribution. Whilst small at present, we expect to develop both projects and deliveradditional revenues during 2019."
"We are expecting to have eight producing wells on the project by the beginning of 2019 and, assuming the new wells perform in line with the first two wells, our 7.5% share of revenues will fully cover all of our overheads."
"The development agreement concluded for our East Denver Project has been the defining point of 2018. It both fully funded the project at no cost to Highlands and delivered $5.4 million to the Company, enabling us to invest in a broad portfolio of projects in line with our strategy.