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.
The flow rate of the well increased to 2,581 Mcfpd over time, compared to the initial flow rate of 1,769 Mcfpd rate. At these indicative levels of production Highlands should be in a position to secure much of its nitrogen supplies for its DT Ultravert needs more economically, this being a principal reason for the investigation of this resource in the first place. By way of illustration, during Highlands’ previous deployments of DT Ultravert, nitrogen was purchased for a cost between $9.0 and $11.7 per Mcf.