Mining, Oil & Gas News & Blog
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Highlands Natural Resources is a London-listed natural resources company with a portfolio of high-potential oil, gas and helium assets and technologies. Recent independent assessments of the group's three main assets - the East Denver Oil & Gas Project, the DT Ultravert well technology and the Helios two gas (plus helium) venture - tally to give a potential net present value between US$441.8mand US$600m.

 Earlier this year an independent assessments of the group’s three main assets - the East Denver oil and gas project, the DT Ultravert well technology, and the Helios Two gas (plus helium) venture - tally to give a potential net present value between US$441.8mln and US$600.1mln.

Knowledge Reservoir LLC, a consultant, provided competent person reports (CPR) for East Denver and Helios, while RPS has completed an independent opinion report (IOR) as an assessment of DT Ultravert. Highlands chief executive Robert Price said: “I am pleased to mark the beginning of 2017 with a positive update and refreshed independent analyses of Highlands' core projects.

“We continue making steps towards our strategy of a mixed portfolio of production and development opportunities, with the weighting towards production. With this goal in mind, we have assembled three core projects that sit at the centre of our company.

“The potential value available at each project is clear, and with refreshed independent assessments in hand we are now better positioned to secure financing and impactful relationships for their progression.”

In this article the breakdown is listed;

  • DT Ultravert valued between US$78-135mln
  • East Denver valued up to US$124mln
  • Helios two has a potential value of $341mln
During the 2017 Robert Price the CEO is extremely optimistic and believe that  Highlands has the potential to be transformed in the event that any one of our three core projects achieves the economic and technical potential described by RPS in the updated reports released today. “Of course, we are working to achieve success on all three platforms. As always, we will continue to update the market with material news as it becomes available."


More about the technology

DT Ultravert diverter technology enhances well output by directing hydraulic fracking fluids to unstimulated portions of the formation and releasing previously unrecoverable hydrocarbons “at a fraction of the cost of drilling a new well.”

DT Ultravert technology is based on an inert gas form in contrast with current diverter technologies that are largely based on solid forms. The companies will conduct focused testing on the application of DT Ultravert to protect existing wells from “bashing.” Highlands had previously identified two potential applications for DT Ultravert: to facilitate re-fracking of horizontal wells and to protect existing wells from damage caused by bashing.

 Bashing occurs during fracking operations when the frac fluid of an adjacent, or “child,” well infiltrates the wellbores of nearby parent wells. Bashing reduces or destroys the production and reserves associated with the parent wells. Highlands said that as well spacing decreases due to infill drilling, the density of wellbores is increasing across many major shale plays.

“It is a potentially serious problem as public oil and gas companies that experience bashing must reduce their publicly announced reserves proportionately, and banks also reduce their lending limits in proportion to destruction of reserves and production,”

Highlands said. In the Piceance Basin, wells are drilled and fracked in close proximity with density reaching as high as one well per 10 acres. “Having experienced issues related to “bashing” previously, Laramie and Highlands collaboratively decided to test the application of DT Ultravert diverter technology as a way of protecting parent wells from being damaged in this way in the future,” Highlands said. Highlands commenced its parent well protection campaign using the DT Ultravert technology on September 18. Schlumberger-operated pumping crews began injecting nitrogen into two existing natural gas wells in the Laramie-operated Piceance Basin natural gas field in western Colorado. Simultaneous to those operations, two new adjacent child wells were fracked by Calfrac. Data on the effects of bashing gathered from other nearby wells is providing Laramie with a control group for comparison purposes.

Highlands said it will release additional details about the tests, including well performance and comparisons to nearby bashed wells, once the results have been analysed. Highlands is financing all of the parent well protection costs as part of its research and development and commercialization efforts tied to DT Ultravert. The company has an existing agreement with Schlumberger for testing DT Ultravert’s role in the re-fracking of horizontal wells and is currently negotiating an extension of that agreement to include its parent well protection campaign.
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