LONDON (ShareCast) - (Sharecast News) - Investors in Highlands Natural Resources were told of recent progress made by the firm on Tuesday, including the start of fracking at its six new wells at the East Denver Project, as they gathered for the annual general meeting.
The London-listed firm said East Denver was one of two projects within its Colorado Shale division.

Chairman and CEO Robert Price said the board was expecting operations to be completed in October, with flowback from the new wells in November.

He said the total number of producing wells at East Denver would increase to eight following successful flowback.

That, together with the construction of a gas pipeline - which was expected to begin in September - would "substantially" increase the company's revenues from the scalable project, which was being entirely funded by Highlands' partners.

"On top of that, I am pleased to inform you that Highlands has increased its acreage position at the West Denver Project to 3,617 acres and has entered into a surface access agreement," Price told shareholders.

"We have already identified the potential to drill at least 48 horizontal wells.

"We continue to increase our land position with an ongoing leasing campaign."

Price said that, as previously highlighted, discussions were underway with potential joint venture partners to finance that project.

He said progress was also being made across the firm's Enhanced Oil Recovery portfolio, and it was expanding our nitrogen project at low cost.

"The Barrett well nitrogen flow rates delivered so far indicate that our existing acreage could deliver enough feedstock for our DT Ultravert technology, and in turn make it more economic for future customers.

"Given that the nitrogen market in the US is valued at $4.1bn annually, we are building exposure to the array of potential customers and applications for this product.

"Discussions with various potential end users continue."

The Barrett well generated traces of both helium and argon, Price confirmed, and the firm was now researching the isotopic composition and potential for those.

Elsewhere, at its Montana Project, the board reportedly expected to open Stage 1 at the Helios 5-52 16-22 well "shortly".

That stage targeted the Eagle Formation, which had been soaking for over eight months, and Price said he "looked forward" to further testing when Highlands drilled out the bridge plug.

"As shareholders can see, we have a lot to look forward to across our various business segments over the coming months.

"I hope Highlands shareholders will share in our enthusiasm for these plans and for what the future will bring."

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