East Denver Niobrara
Near term cash flow potential via oil and gas farm-in
|Project:||Completed Farm-In on 3,840 acres|
|Location:||Arapahoe County, Colorado|
|NPV10 and IRR||$23.3 million to $124.5 million depending on development plan|
Highlands has farm-in agreements in Arapahoe County, Colorado with Renegade Oil & Gas Company, LLC (‘Renegade’) and a major international oil and gas producer, which collectively allow Highlands to drill up to 24 9,000 ft horizontal wells in acreage highly prospective for the Niobrara shale formation.
As depicted in the map above, Highlands’ land position is located in close proximity to numerous wells that have produced in excess of 100,000 barrels of oil in their first six months of production. An independent evaluation by third party engineering firm RPS indicates gross 1P Proved Reserves of 10.1 MMBoe and 2P Proved plus Probable Reserves of 12.9 MMBoe, indicating that 78% of the anticipated P50 type curve is considered Proved. As a result, Highlands views the East Denver Niobrara asset as a considerably de-risked project from a geologic and reservoir perspective.
|Farm-In Acreage||3,840 acres|
|Development Plan||Drilling of 6-24 extended lateral wells in the Niobrara|
|RPS CPR Valuation
|1) NPV10 range for six wells of US$23.3 million to US$30.1 million
2) Increases to between US$96.6 million and US$124.5 million for the potential 24 well development programme