Shares in AIM listed Highland Natural Resources (LON:HNR) rose 30% following the announcement of a agreement with Calfrac Well services.
The deal involves the delivery of re-fracking services to Calfrac in seven US states through the DT Ultravert Technology. Highland Natural Resources owns a 75% stake in the DT Ultravert Technology aimed at re-fracking processes.
As part of the deal, Highland Natural Resources are entitled to a 2% royalty on all revenue earned by Calfrac from the fracking operations for the duration of the contract.
“We are delighted to have entered into another licence agreement with a highly reputable oilfield services provider in the US and Canada. Together with our agreement with Schlumberger, these agreements will help accelerate the market penetration, commercialisation and industry adoption of DT Ultravert, a technology we believe has the potential to transform and significantly reduce the costs associated with unconventional exploration and production via re-fracking using a diverter technology, particularly in the current oil price environment,” said CEO Mr Price.
The share price of Highland Natural Resources have gone from strength to strength after listing in March 2015 with the aim of targeting assets in distressed oil & gas companies.
Having traded as low as 6.7p on it’s first day of trading, shares have rallied 800% since it’s initial IPO.
The major shift in Highland’s share price began in April of this year when news of the DT Ultravert deal started to surface alongside the announcement of the acquisition of North Dakota acreage with strong prospects in natural gas.
In November 2015, Acquisition of the Gravity Prospect North Dakota acquired 1,972 acres targeting the shallow natural gas prospect ‘Gravity’ in Niobrara and Muddy Formations in Emmons Couny, North Dakota.
The cost to complete the well is estimated to be approx 50,000 U$$ with sights set on completing the well by mid-june 2016
Shares in Highland Natural Resources traded at 54.3p +30.1% at 11.00 am London time.
By Aaron Kidd