TIDMHNR
RNS Number : 1164E
Highlands Natural Resources PLC
07 February 2018
7 February 2018
Highlands Natural Resources plc ('Highlands' or 'the
Company')
Successful Permian Basin Deployment of DT Ultravert in
Horizontal Well Protection
Highlands, the London-listed natural resources company, is
pleased to announce the results of its most recent DT Ultravert
deployment in a horizontal well in the Permian Basin. Highlands'
patented parent well protection technology, DT Ultravert, was
deployed in a one-mile horizontal well operated by a private
upstream oil and gas company in one of the most active shale plays
in the United States. The operations utilized both membrane and
cryogenic Nitrogen gas injections to pressurize the parent well
during the fracking of an offsetting child well. Operations were
executed safely and efficiently, which resulted in the desired
pressure increases and confirmed Highlands' expectations that DT
Ultravert is capable of restoring and maintaining protective
reservoir pressures in a horizontal wellbore. The DT Ultravert
pressure shield is a proven technique for protecting parent wells
against "bashing," which occurs when fracture fluids from
offsetting child wells invade a partially depleted parent well.
Readers are encouraged to visit the Company's website for a
brief animated explanation of bashing and parent well protection:
http://highlandsnr.com/technology/dt-ultavert/parent-well-protection/
Importantly, nearby parent wells had been bashed by child wells,
resulting in significant destruction of proved reserves in parent
wells as well as underperformance of child wells. Relative to those
neighboring bashed wells, DT Ultravert protected the parent well,
and child wells completed during the DT Ultravert deployment are
outperforming child wells completed without DT Ultravert.
Highlights:
-- The reservoir pressure in the parent well was boosted by up
to 400%, proving that DT Ultravert can restore reservoir pressure
in horizontal wells just as effectively as previously observed in
prior vertical well tests
-- Elevated pressures were maintained above pre-treatment levels
throughout the child well frac operation lasting approximately one
week, demonstrating sustained, long-term pressure benefits
-- The parent well has resumed production, and negative effects
of bashing have been minimized relative to neighboring bashed
parent wells
-- New child wells fracked during the DT Ultravert deployment
are significantly outperforming neighboring child wells fracked
without DT Ultravert
-- DT Ultravert will be displayed broadly at this week's North
American Prospect Expo (NAPE) conference in Houston, which is among
the industry's most widely attended trade shows
-- Highlands has numerous issued and pending patents covering DT Ultravert technology
Highlands' Chairman and CEO Robert Price said, "The result of
our Permian Basin operation marks a milestone for Highlands as it
reaffirms our belief in DT Ultravert's ability to transform the
shale industry. Successful parent well protection by DT Ultravert
in a horizontal well in the highly active Permian Basin is a major
step forward in the technology's commercialization process. This
news should draw attention from many operators currently concerned
by the threat of bashing. Horizontal wells represent the bulk of
today's development activity in North America and therefore
constitute the primary market for DT Ultravert. Highlands looks
forward to arming the broader shale industry with our patented DT
Ultravert technology as a way to protect existing production and
enhance child well performance in shale plays. DT Ultravert will be
prominently displayed at NAPE, and I look forward to personally
sharing these test results with our industry colleagues at the
conference in Houston this week.
"Beyond DT Ultravert, Highlands recently crossed the 100,000
barrels of cumulative production milestone at our East Denver
Niobrara project, and also recently completed a promising gas
production test at our 220,000-acre Helios Two project in Montana.
All in all, 2018 is off to a fast start, and I look forward to
updating the market with additional news in due course."
Technical Summary:
-- The Operation's first stage consisted of injecting
membrane-sourced Nitrogen into the parent well for a duration of 5
days prior to the commencement of fracking in the child well
-- First stage injections resulted in parent well pressure rising from 1,000 psi to 1,600 psi
-- Following the completion of first stage injections, the
second stage of operations started with injection of cryogenic
Nitrogen, which was carefully synchronized with commencement of
frac operations in the child well
-- Injections from the second stage raised the parent well pressure from 2,500 psi to 4,000 psi
-- The third and final stage of the parent well protection
operation started in the middle of the child well frac process, and
entailed additional cryogenic nitrogen injection
-- As a result, parent well pressure again rose from 2,500 psi to 4,000 psi
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
David Porter Cantor Fitzgerald Europe +44 (0) 20 7894 7000
Lottie Wadham St Brides Partners Ltd +44 (0) 20 7236 1177
Hugo de Salis St Brides Partners Ltd +44 (0) 20 7236 1177
Notes to Editors
Highlands (LSE: HNR.L) is a London-listed natural resources
company with a portfolio of high-potential oil, gas and helium
assets and technologies. The company's core projects include:
-- East Denver Niobrara: a horizontal oil and gas project
targeting the Niobrara shale formation in a well-delineated area of
the Denver Julesburg Basin. The Company is currently producing oil
and gas from its first two wells in the project, completed in late
2017, and is planning to drill additional wells in 2018.
-- DT Ultravert: a re-fracking and parent well protection
technology with four patents allowed and additional patents pending
in both the United States and internationally. Highlands is
developing opportunities with a range of oil and gas operators and
service providers to commercialize DT Ultravert technology.
-- Helios Two: a 220,000+ acre helium and natural gas discovery
in SE Montana with gas production tests completed in the Eagle and
Muddy Formations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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