Further Third-Party Funding For East Denver

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:

Robert Price	Highlands Natural Resources plc	+1 (0)  303 322 1066
Nick Tulloch	Cenkos Securities plc	[phone]
Neil McDonald	Cenkos Securities plc	[phone] / [phone]
Lottie Brocklehurst	St Brides Partners Ltd	[phone]
Hugo de Salis	St Brides Partners Ltd	[phone]

 

END

 

 

DRLSEEEFEFWSEDA