Highlands Natural Resources reports spudding of six new wells

LONDON -- Highlands, the London-listed natural resource company, is pleased to announce that the six initial new wells being funded by Highlands' partners at the East Denver oil and gas project have now been spud.

The new wells spudded since April 2018 are named Buckskin, Citadel, Hagar, Ouray, Thunder and Grizzly. With two producing wells, Wildhorse and Powell, already delivering cash flow to Highlands at the project, these six additional wells will bring the total number of producing wells up to eight when complete. Up to 24 wells are possible across the project, and this funding arrangement has the potential to cover all future wells at East Denver. Highlands will retain a 7.5% carried interest in each new well drilled, as well as the two existing producing wells, providing substantial revenues to the Company going forward.

The company will now move on to sequentially drill out the lateral portion of each wellbore. Having spud the six new wells within two weeks, phase two of the drilling on the northern drilling and spacing unit is on track to be completed by the end of June, in line with the time frame set out on April 27, 2018.

Robert Price, Highlands' chairman and CEO, said, "The rapid development of these wells demonstrates the firm commitment of our partners to develop our East Denver Project. We are positioned to receive revenues from eight producing wells in fourth-quarter 2018, which will enable the acceleration of development across our existing and future portfolio projects. Based on the strong production rates achieved at the existing producing wells at East Denver, I feel confident regarding the future cash flow potential of upcoming wells. We expect to update shareholders regarding our future strategy to utilise our funds to create further value in the near future."