Highlands Natural Resources to Pay $500,000 for Rights to Drill Six Wells
July 25 2016 - 3:46AM
Dow Jones News
By Alex MacDonald
LONDON--Highlands Natural Resources PLC (HNR.LN) said Monday it
will pay $500,000 to Renegade Oil & Gas Co. for rights to drill
up to six horizontal wells on the Niobrara shale formation in the
Arapahoe County, Colorado, U.S.
The U.K.-listed natural resources company will keep 80% of the
revenue generated from these wells with the remainder going to
Renegade and the State of Colorado.
In parallel, Highlands has started discussing with several
industry partners the joint financing and development of the six
wells.
"These discussions are now at an advanced stage such that
Highlands believes that it can commence drilling by the end of
2016," the company said.
Highlands said the majority of ConocoPhillips's nearby
horizontal wells produced between 50,000 to 100,000 barrels of oil
in their first six months of production.
A well producing more than 50,000 barrels of oil in its first
six months would rank among the top 12% of all horizontal Niobrara
wells based on 2,943 wells surveyed in May, Highlands said.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
July 25, 2016 03:31 ET (07:31 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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