Highlands Natural Resources PLC Further Third-Party Funding For East Denver (7165O)
August 23 2017 - 2:00AM
UK Regulatory
TIDMHNR
RNS Number : 7165O
Highlands Natural Resources PLC
23 August 2017
23 August 2017
Highlands Natural Resources plc ('Highlands' or 'the
Company')
Further Third-Party Funding For East Denver
Highlands, the London-listed natural resources company, is
pleased to announce that it has executed a participation agreement
(the "Participation Agreement") providing additional third-party
funding for the Company's drilling programme at its East Denver
Niobrara shale oil and gas project in Colorado (the "East Denver
Project" or "East Denver"). Highlands' counterparty in the
Participation Agreement is a leading oilfield services company,
with global operations and listed on the New York Stock Exchange
("Participant").
The Participation Agreement includes drilling and completions
costs for a minimum of four wells and up to 24 wells (the
"Programme Wells"). In combination with the Joint Development
Agreement announced on 6 July 2017 with Raisa, the commercial terms
of the Participation Agreement give Highlands a long term working
interest in the Programme Wells of 70%. Additionally, under the
Participation Agreement, Highlands will receive a pro-rata
reimbursement of its East Denver land costs on a well-by-well basis
upon the spud of each well.
Highlights:
-- Drilling at East Denver has already commenced
-- Highlands retains a 70% long-term working interest in the
Programme Wells after a return of invested capital, while the
Company funds only 51.25% of drilling and completions costs
-- Formation of a joint technical team, wherein highly
experienced staff from the Participant will engage with Highlands'
internal team to jointly evaluate and execute technical
decisions
Highlands' Chairman and CEO Robert Price said, "In the past
month, we have secured investment into East Denver from a leading
US private oil and gas investment company and now a leading
oilfield services provider. Not only does this provide outstanding
third-party validation of our East Denver Project but it positions
Highlands to advance and accelerate our drilling operations
there.
"Drilling operations are now underway at East Denver, and we
will continue our updates to investors in due course."
THIS RELEASE CONTAINS INSIDE INFORMATION.
**ENDS**
For further information, please visit www.highlandsnr.com, or
contact:
Highlands Natural +1 (0) 303 322
Robert Price Resources plc 1066
Cenkos Securities +44 (0) 131 220
Nick Tulloch plc 9772
+44 (0) 131 220
9771 /
Cenkos Securities +44 (0) 207 397
Neil McDonald plc 1953
St Brides Partners +44 (0) 20 7236
Lottie Brocklehurst Ltd 1177
St Brides Partners +44 (0) 20 7236
Hugo de Salis Ltd 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
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