Highlands Natural Resources plc (‘Highlands' or ‘the Company')
Colorado Shale – Permitting of West Denver Project
Highlands, the London-listed natural resources company, is pleased to announce that it has filed applications with the Colorado Oil and Gas Conservation Commission (‘COGCC') to establish drilling and spacing units to allow for up to a 104 well development programme at the West Denver Shale Oil and Gas Project. The Company has also expanded its landholding to 4,800 acres.
The Company will file up to 104 well permits with the COGCC prior to the November 6th vote on a change in the Colorado Revised Statutes, called Proposition 112. This Proposition aims to increase the well setback limits from 500-feet for occupied buildings and 1,000-feet from school structures to 2,500-feet for all structures and vulnerable areas. Although similar propositions have failed in the past, the Company has been advised that by filing the permits prior to the ballot it has minimized the potential risk posed by Proposition 112.
Highlands is in on-going discussions with various strategic and financial parties for the development of its West Denver Shale Oil and Gas Project. The Company aims to leverage its potential partners' capital commitments to develop the asset with minimal costs to the Company and retain a significant carried interest for all wells without dilution to its shareholders.