27th Apr 2018 10:24
LONDON (Alliance News) - Natural resources company Highlands Natural Resources PLC has started its phase two drilling at the East Denver Niobrara oil and gas project with a third well being spud.
This is in-line with Highlands' agreement with True Oil LLC announced last Friday, where the entire capital costs of six additional wells will be funded by Highlands' partners.
Highlands has received a payment of USD5.7 million and a 7.5% carried interest in all current and future East Denver wells. The next six wells are expected to be drilled on the northern drilling and spacing unit over the next eight weeks, meaning the total number of wells at the project will be eight.
"Less than a week after securing our financing deal with True, we are spudding our first new well. This rapid development means that we are set to bring significant additional cash flows to our company," said Chairman and Chief Executive Officer Robert Price.
"This will create a strong backbone for our company as we focus on replicating the success we have experienced so far in proving up the significant productivity of our acreage before partnering with major companies to fund an extensive and costly programme. This proven model provides us with a carried interest without diluting shareholders," Price added.
Shares in Highlands Natural Resources were down 0.6% at 21.0 pence on Friday.
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Highlands Natural ResourcesZOE.L