Proactiveinvestors United Kingdom Highlands Natural Resources PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Highlands Natural Resources PLC RSS feed en Sun, 26 May 2019 10:59:15 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Highlands Natural Resources makes rapid progress with new CBD operation ]]> https://www.proactiveinvestors.co.uk/companies/news/219997/highlands-natural-resources-makes-rapid-progress-with-new-cbd-operation-219997.html  

How is it doing

Highlands Natural Resources Plc (LON:HNR) has undertaken a major shift in direction in recent months.

Originally an oil and gas group with wells in Colorado, in March Highlands got into the CBD business via the new Zoetic Organics subsidiary.

The company recently secured its first retail distribution and sales agreement, to supply products via Schrader Oil’s chain of eighteen convenience and gas stores.

At the same time, it is also selling direct to customers online and developing a seed distribution business.

"The progress made by Zoetic since we established this operation less than two months ago has been excellent,” said Robert Price, Highlands executive chairman.

Zoetic is presently planting outdoors, with the team aiming to cover two eight-acre fields.

The company anticipates a planting deadline of 30 June, though it expects to complete the programme before then.

The group is also building out a 33,000sq ft of greenhouse, growing plants for CBD production.

Capacity is expected to reach 10,000 plants per season, and, along with the primary CBD products, those plants will yield more than 500 seeds.

Highlands noted that the indoor growing cycle is a little longer than outdoors, but still expects to achieve at least three production seasons per year.

 

Synergy

The broader gas business provides synergy, as it is supplying gas to produce a nitrogen-hydrogen based fertiliser that’s being used across the Zoetic operation.

In today’s statement, the company highlighted that demand for high-quality seeds is very strong amid a fast-growing hemp and CBD industry,

 

Gas production

Highlights told investors in May that its eight part-owned production wells at the East Denver project yielded around 2,700 barrels of oil per day and 4mln cubic feet of gas per day.

Five of the eight new wells are currently operating on a limited choke, restricting output with a view to maintaining pressure and extending well life.

The company owns a 7.5% interest in the wells, and, it said that the asset is generating monthly revenue above the company’s fixed operating costs.

Taking account of expected revenues across the whole group, Highlands said it retains the view that it will generate sufficient cash flow to cover all overheads for the current year.

At East Denver, Highlands has also received a US$58.5mln commitment from a US oil and gas-focused private equity group to support an expansion of up to 24 wells at the site.

According to HNR, the East Denver project has an NPV10 range for six wells of between US$23.3mln to US$30.1mln.

An estimate for the full 24 wells sees this estimate increase to between US$96.6mln to US$124.5mln.

  DT Ultravert

Away from its production arm, HNR also has its DT Ultravert technology, which has been proven to prevent ‘well bashing’ and enhance well productivity.

The process involves the injection of nitrogen gas into an existing well at the same time as a new nearby well is fracked.

Highlands has enjoyed some early stage success in deploying the technology but needs its own nitrogen supply represents one of the largest cost inputs.

As a result, it has been looking to produce its own nitrogen from a project in Kansas.

HNR’s thinking is that if it can start producing its own nitrogen, it will not only reduce the cost for its customers, but it will also improve its own margins and possibly create another revenue stream if it becomes a supplier in its own right.

HNR holds a 75% stake in the DT Ultravert technology patents.

 

What the boss says : Robert Price, chief executive

"Our gas is a game changer for organic growing, We can increase the yield by 30%.  We supply the gas to the soil so it's a natural fertiliser. The plants look really beautiful. We bring gas from Kansas into Colorado and produce different oils from hemp."

 

Latest video

 

Inflexion points

First sales from the CBD business

Increasing production from the East Denver wells as more come on stream

Hydrogen/nitrogen mix found in Kansas, with the most signficant beneficial results in cannbis and hemp plant

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Thu, 09 May 2019 14:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219997/highlands-natural-resources-makes-rapid-progress-with-new-cbd-operation-219997.html
<![CDATA[News - HNR highlights quick move to revenue for its new CBD business ]]> https://www.proactiveinvestors.co.uk/companies/news/219963/hnr-highlights-quick-move-to-revenue-for-its-new-cbd-business-219963.html Highlands Natural Resources PLC (LON:HNR) shares saw positive territory as it highlighted a quick move to revenue in its new cannabidiol (CBD) business in the United States.

The company - which had been focusing on oil and gas assets in Colorado and shale well technologies - in March got into the CBD business via the new Zoetic Organics subsidiary.

Within weeks of launching the venture the company secured its first retail distribution and sales agreement, to supply products via Schrader Oil’s chain of eighteen convenience and gas stores.

READ: HNR’s new cannabidiol business lands first retail sales agreement

At the same time, it is also selling direct to customers via the internet and it is also developing a seed distribution business.

"The progress made by Zoetic since we established this operation less than two months ago has been excellent,” said Robert Price, Highlands executive chairman.

“From a standing start, we have three revenue lines underway within the Zoetic business and I look forward to providing further updates as our retail sales develop. 

“This is a fast-moving industry but the combination of our facilities and innovative management team has enabled us to take a flexible approach which I am confident will deliver good returns to our shareholders in the years to come.”

Zoetic is presently planting outdoors, with the team aiming to cover two eight-acre fields, and Highlands today told investors that the new plan is expected to improve the revenue potential compared to the prior approach.

The company anticipates a planting deadline of 30 June, though it expects to complete the programme before then.

The group is also building out a 33,000 square feet of greenhouse, growing plants for CBD production.

Capacity is expected to reach 10,000 plants per season, and, along with the primary CBD products those plants will yield more than 500 seeds.

Highlands noted that the indoor growing cycle is a little longer than outdoors, but, it still expects to achieve at least three production seasons per year.

The broader gas business provides synergy, as it is supplying gas to produce a nitrogen-hydrogen based fertilized that’s being used across the Zoetic operation.

In today’s statement, the company highlighted that demand for high quality seeds is very strong amid a fast growing hemp and CBD industry, though it guided investors that the timing of revenues from the seed business are skewed to the last quarter of the financial year.

Revenue generating hydrocarbon business

Looking to the gas business, Price added: “In the meantime, our East Denver project is being operated to the highest standards and providing regular revenue to Highlands."

Highlights told investors that its eight part-owned production wells at the East Denver project yielded around 2,700 barrels of oil per day and 4mln cubic feet of gas per day.

Five of the eight new wells are currently operating on a limited choke, restricting output with a view to maintaining pressure and extending well life.

The company owns a 7.5% interest in the wells, and, it said that the asset is generating monthly revenue above the company’s fixed operating costs.

Taking account of expected revenues across the whole group, Highlands said it retains the view that it will generate sufficient cash flow to cover all overheads for the current year.

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Thu, 09 May 2019 09:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219963/hnr-highlights-quick-move-to-revenue-for-its-new-cbd-business-219963.html
<![CDATA[RNS press release - Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190509070006_14067373/ Thu, 09 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190509070006_14067373/ <![CDATA[RNS press release - Board Change Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190426070010_14052771/ Fri, 26 Apr 2019 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190426070010_14052771/ <![CDATA[News - Highlands Natural Resources appoints experienced corporate finance adviser as its finance director ]]> https://www.proactiveinvestors.co.uk/companies/news/218653/highlands-natural-resources-appoints-experienced-corporate-finance-adviser-as-its-finance-director-218653.html Highlands Natural Resources PLC (LON:HNR) has announced the appointment of an experienced corporate finance adviser, Nick Tulloch as its finance director and company secretary.

The London-listed natural resources company said Tulloch is expected to join the firm in the second quarter of 2019, following his release from his current employment, with the date to be confirmed in due course.

READ: Highlands Natural Resources' new cannabidiol business lands first retail sales agreement

It pointed out that Tulloch is currently a managing director at Cantor Fitzgerald Europe's corporate finance department and has previously held senior positions at several other investment banks and stockbrokers.

In addition to his duties as finance director and company secretary, Tulloch will also support the development of the company's investor relations strategy, the group added.

Highlands Natural Resources said its current finance director, Melvyn Davies, who helped establish the company and has served as a director since its formation, will step down concurrent with Tulloch’s arrival and will be available for a short period thereafter to ensure a smooth transition.

Robert Price, the company's chairman and CEO, said: "Nick has been Highlands' financial adviser for the past four years and therefore already has a very strong working relationship with the team and our strategy. I am delighted to announce his appointment to the Board in the role of Finance Director.

“He joins Highlands at a pivotal time in our development as we seek to establish ourselves as organic CBD producers in Colorado, USA and I am confident that he will make a significant contribution.”

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Tue, 16 Apr 2019 07:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218653/highlands-natural-resources-appoints-experienced-corporate-finance-adviser-as-its-finance-director-218653.html
<![CDATA[RNS press release - Board Change ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190416070013_14042080/ Tue, 16 Apr 2019 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190416070013_14042080/ <![CDATA[News - Highlands Natural Resources' new cannabidiol business lands first retail sales agreement ]]> https://www.proactiveinvestors.co.uk/companies/news/217628/highlands-natural-resources--new-cannabidiol-business-lands-first-retail-sales-agreement-217628.html Highlands Natural Resources PLC (LON:HNR) said its newly established cannabidiol (CBD) subsidiary, Zoetic Organics, has landed its first retail distribution and sales agreement.

Zoetic Organics has signed an initial two-year distribution and sales deal with Schrader Oil and Ox Distributing, which manages convenience stores and petrol stations across the US.

READ: Highlands Natural Resources to enter cannabidiol market in Colorado with new growing operation

Under the deal, Zoetic branded pre-rolled CBD smokables, ready-rolls and CBD chew pouches will be distributed to and sold in 18 Schrader Oil convenience and gas stores.

The deal represents the first line of retail products that Zoetics aims to launch this year.

“This is a significant development for Highlands as not only does it accelerate our predicted revenues from Zoetic Organics ahead of our own first harvest but it also provides us with an early opportunity to establish the Zoetic brand,” said Highlands chairman Robert Price.

Zoetic has four different natural flavoured and CBD infused herbal smokables, ready-rolls and CBD chew pouches.

The products will be made using supplies from an organic hemp farmer in Colorado until Zoetic finishes growing its own crop this summer.

Zoetic has secured the lease for a 33,000 square foot facility in Colorado, which has the capacity for 40,000 hemp plants each year.

The company aims to deliver its first batch of CBD smokables and ready-rolls into Schrader stores by the beginning of May followed by its CBD chew pouches by June.

Zoetic said it expects the sale agreement to mark the first step of its plan to become a supplier of a variety of CBD products in Colorado, across the US and internationally.

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Mon, 01 Apr 2019 09:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217628/highlands-natural-resources--new-cannabidiol-business-lands-first-retail-sales-agreement-217628.html
<![CDATA[RNS press release - First Retail Sale Agreement - Zoetic Organics ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190401070007_14022475/ Mon, 01 Apr 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190401070007_14022475/ <![CDATA[RNS press release - Disclosure of notifiable interests ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190326070022_14015186/ Tue, 26 Mar 2019 07:00:22 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190326070022_14015186/ <![CDATA[News - Highlands Natural Resources to enter cannabidiol market in Colorado with new growing operation ]]> https://www.proactiveinvestors.co.uk/companies/news/216813/highlands-natural-resources-to-enter-cannabidiol-market-in-colorado-with-new-growing-operation-216813.html Highlands Natural Resources PLC (LON:HNR) is to set up a cannabidiol (CBD) operation in Colorado using hydrogen from its gas operation in Kansas as fertiliser.

In an announcement after the close on Tuesday, the oil and gas firm said through its new subsidiary, Zoetic Organics, it was aiming to lease a 33,000 square foot facility in Colorado, which had the capacity for 40,000 hemp plants each year.

WATCH: Highlands Natural Resources PLC launches offer on PrimaryBid for its new CBD subsidiary

Zoetic would then target sales of products including organic hemp oil and pre-rolled smokable products in both wholesale and retail, with HNR expecting first revenues by mid-2019 and profitability by the end of the year.

The move followed a recent trial with another cannabis grower in the state which showed that the hydrogen recovered from HNR’s gas operation had increased the size of the plants grown when added as an organic fertiliser, with the results surpassing expectations.

Funding

To help fund the new business, the group said it had raised around £1.56mln through the subscription of 18.3mln new shares at a price of 8.5p each, a 12.4% discount to its last close price.

Robert Price, executive chairman and chief executive of Highlands, said Zoetic would provide the company with an opportunity to enter the “rapidly growing CBD market” at low cost.

“Our immediate priority is to advance the discussions currently underway with potential retail and wholesale partners, purchase manufacturing equipment and expand our outdoor growing, ahead of our intended harvest of our first 10,000 hemp plants by mid-2019.”

The company also said that the new operation would be developed alongside its existing asset portfolio, which includes eight producing shale wells in Colorado that would cover the firm’s overheads in 2019.

CBD is increasingly being recognised by various medical organisations, including the World Health Organisation (WHO), as a method treating symptoms of conditions such as Alzheimer’s and Parkinson’s. According to a report from market research firm Brightfield Group, the CBD market is estimated to be worth around US$22bn by 2022.

Shares lower on new business venture

In a note to clients, analysts at SPAngel said: “While we congratulate the management team for continuing to seek ways in which to generate value, we didn't quite expect yet another business venture to be started.

“While we can appreciate the growth in the cannabis sector and the potential profits that can accrue to the business, we find it hard to believe that with such diverse business interests already, that this will be any different.”

They added: “We believe that the increasingly disparate nature of the businesses that the management team is pursuing is starting to give us concern that they are running out of ideas.”

In afternoon trading, shares in Highlands Natural Resources were 8,.5% lower at 8.88p.

 -- Adds analyst comment, share price --

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Wed, 20 Mar 2019 07:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216813/highlands-natural-resources-to-enter-cannabidiol-market-in-colorado-with-new-growing-operation-216813.html
<![CDATA[RNS press release - Results of PrimaryBid.com Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190320070007_14008297/ Wed, 20 Mar 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190320070007_14008297/ <![CDATA[RNS press release - PrimaryBid.com Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190319163104_14007997/ Tue, 19 Mar 2019 16:31:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190319163104_14007997/ <![CDATA[RNS press release - Fundraising for an Organic Cannabidiol Operation ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190319163004_14007996/ Tue, 19 Mar 2019 16:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190319163004_14007996/ <![CDATA[Media files - Highlands Natural Resources PLC launches offer on PrimaryBid for its new CBD subsidiary ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12645/highlands-natural-resources-plc-launches-offer-on-primarybid-for-its-new-cbd-subsidiary-12645.html Tue, 19 Mar 2019 12:55:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12645/highlands-natural-resources-plc-launches-offer-on-primarybid-for-its-new-cbd-subsidiary-12645.html <![CDATA[News - Highlands Natural Resources reveals East Denver production rates ]]> https://www.proactiveinvestors.co.uk/companies/news/215195/highlands-natural-resources-reveals-east-denver-production-rates-215195.html Highlands Natural Resources PLC (LON:HNR) told investors that initial production rates from the East Denver project have measured 4,600 barrels oil equivalent per day, and they are expected to rise further.

The production pad – to which the Buckskin, Citadel, Grizzly, Hagar, Ouray, Thunder, Wildhorse and Powell wells are attached – is flowing oil at a combined rate of around 4,053 Bopd while combined gas rates were 3.28mln cubic feet per day.

READ: Highlands Natural Resources says gas sales underway at East Denver        

Highlands, which owns 7.5% of the project, highlighted that the project operator is advancing a conservative flowback plan which sees the wells being opened up slowly.

“As well as benefiting from the recently recovered oil prices, Highlands and its operating partner benefit from strong pricing for its gas, which is rich in liquids,” the company said in a statement.

“While the price for both the liquids and residual gas fluctuates, the effective sales price for the residual gas in the pipeline since the commencement of operations was $2.88 mcf.”

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Mon, 25 Feb 2019 07:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215195/highlands-natural-resources-reveals-east-denver-production-rates-215195.html
<![CDATA[RNS press release - East Denver Wells IP Rate Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190225070006_13979564/ Mon, 25 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190225070006_13979564/ <![CDATA[RNS press release - Change of Auditor ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190130174001_13952481/ Wed, 30 Jan 2019 17:40:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190130174001_13952481/ <![CDATA[News - HIghlands Natural Resources says gas sales underway at East Denver ]]> https://www.proactiveinvestors.co.uk/companies/news/213402/highlands-natural-resources--says-gas-sales-underway-at-east-denver-213402.html Highlands Natural Resources PLC (LON:HNR) has started gas sales from the East Denver project following completion of a pipeline.

The company holds a 7.5% interest in each well on the acreage.

Earlier this month, Highlands said oil production had begun at eight producing wells at the project.

Highlands also has a US$58.5mln commitment from a US oil and gas-focused private equity group to support an expansion of up to 24 wells at the site.

According to HNR, the East Denver project has an NPV10 range for six wells of between US$23.3mln to US$30.1mln.

 

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Mon, 28 Jan 2019 08:27:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213402/highlands-natural-resources--says-gas-sales-underway-at-east-denver-213402.html
<![CDATA[RNS press release - Gas Sales Commence at East Denver Project ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190128070006_13947970/ Mon, 28 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190128070006_13947970/ <![CDATA[News - Highlands Natural Resources says all eight new East Denver wells are now online ]]> https://www.proactiveinvestors.co.uk/companies/news/212465/highlands-natural-resources-says-all-eight-new-east-denver-wells-are-now-online-212465.html Highlands Natural Resources Plc (LON:HNR) has told investors that all eight new wells at the East Denver project are now online as production wells.

The company owns a 7.5% interest in East Denver and it expects it will now receive robust revenue streams from the wells throughout 2019.

READ: Highlands Natural set for new wells boost at East Denver

Last year at East Denver, Highlands received a US$58.5mln commitment from a US oil-and-gas-focused private equity group to support an expansion of up to 24 wells at the site.

According to HNR, the East Denver project has an NPV10 range for six wells of between US$23.3mln to US$30.1mln. An estimate for the full 24 wells sees this as an increase of between US$96.6mln to US$124.5mln.

 

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Mon, 14 Jan 2019 07:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212465/highlands-natural-resources-says-all-eight-new-east-denver-wells-are-now-online-212465.html
<![CDATA[RNS press release - Eight Producing Wells - East Denver ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190114070005_13932750/ Mon, 14 Jan 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190114070005_13932750/ <![CDATA[News - Highlands Natural Resources concludes Colorado well completions ]]> https://www.proactiveinvestors.co.uk/companies/news/211824/highlands-natural-resources-concludes-colorado-well-completions-211824.html Highlands Natural Resources Plc (LON:HNR) has told investors that it has successfully concluded well completion operations for the six recently drilled wells at the East Denver project in Colorado.

Flowback has so far commenced in three of the six wells and is expected in the remainder over the next two weeks.

READ: HNR set for Happy New Year for Colorado project

“Provisional data from the three new wells flowing back … indicate that these wells should perform in line with the existing two wells drilled by Highlands, which have been ranked in the top 3% of all Niobrara wells in the Denver Julesburg basin,” the company said in a statement.

Highlands noted that it will own a 7.5% interest in eight producing wells at East Denver once the full well programme has been completed. This is expected to position the company for revenues from the project throughout 2019.

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Wed, 02 Jan 2019 07:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211824/highlands-natural-resources-concludes-colorado-well-completions-211824.html
<![CDATA[RNS press release - Colorado Shale - East Denver Project Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190102070006_13920054/ Wed, 02 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20190102070006_13920054/ <![CDATA[News - HNR set for Happy New Year as new Colorado wells come online ]]> https://www.proactiveinvestors.co.uk/companies/news/211118/hnr-set-for-happy-new-year-as-new-colorado-wells-come-online-211118.html Highlands Natural Resources PLC (LON:HNR) is looking forward to a happy New Year with a number of new wells due online over the coming weeks. It follows a busy and successful work programme at the East Denver project in Colorado this year.

"The development agreement concluded for our East Denver project has been the defining point of 2018,” chief executive Robert Price said in the company’s interim results statement.

READ: Highlands Natural looks forward to new wells at East Denver

“It both fully funded the project at no cost to Highlands and delivered US$5.4 million to the company, enabling us to invest in a broad portfolio of projects in line with our strategy.

"We are expecting to have eight producing wells on the project by the beginning of 2019 and, assuming the new wells perform in line with the first two wells, our 7.5% share of revenues will fully cover all of our overheads.”

Price added: "In the meantime, two of our new projects, developed during the period under review and funded from the proceeds of our East Denver project, have already begun to make a revenue contribution.

“Whilst small at present, we expect to develop both projects and deliver additional revenues during 2019.”

Thursday’s statement noted the first commercial sale agreement for nitrogen from its project in Kansas, along with the formation of the Highlands Water Resources unit which intends to pursue a number of initiatives for water management services for the oil and gas industry in North America.

In terms of the financials, revenues for the company’s first half amounted to £522,408, and, it reported a £4.38mln loss for the period.

HNR ended the six months, at 30 September, with £1.99mln of cash and equivalents.

"Highlands enters the new year in a strong position and, as our portfolio of operations develops, we look forward to updating our shareholders on our progress,” Price added.

Much to admire, but insufficient focus - broker

In a note to clients, analysts at SPAngel commented: “The Company’s interim update today leaves us with the belief that there is a much to admire about the management team, in the way that they try to seek an opportunity in what they are presented with.

“However, there comes a point where a management team has to accept that the markets they are trying to sell in to is just not mature enough to support a growth company.”

He added: “Currently, we fear that insufficient focus in any one area is starving all areas of cash to grow, and hence all with wither and die before shareholders have an opportunity to benefit from their management’s evident zeal.

“What investors need management to do is high-grade the portfolio and focus on the single most likely project to generate sufficient cash flow to achieve the self-sustainability in the near term — that way the remaining projects have a better chance of coming to a commercial conclusion, albeit in a longer time frame.”

In afternoon trading, shares in Highlands Natural Resources were 8.5% lower at 12.85p.

 -- Adds analyst comment, share price --

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Thu, 13 Dec 2018 07:24:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211118/hnr-set-for-happy-new-year-as-new-colorado-wells-come-online-211118.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181213070001_13901805/ Thu, 13 Dec 2018 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181213070001_13901805/ <![CDATA[News - HIghlands Natural looks forward to new wells at East Denver ]]> https://www.proactiveinvestors.co.uk/companies/news/209775/highlands-natural-looks-forward-to-new-wells-at-east-denver-209775.html Highlands Natural Resources Plc (LON:HNR) has shrugged off a setback over permits at its West Denver licences with little fuss.

Originally, Highlands applied for 104 development permits for shale operations but withdrew them all after local community objections.

READ: Highlands Natural plays down West Denver and sees revenues rising

After an initial wobble on the news, shares in the junior bounced strongly as the company predicted rising revenues from its East Denver operation and elsewhere.

Highlands has been undertaking fracking operations at the East Denver acreage recently and in November said it expects six new wells to come on stream by the end of 2018.

With these, the company will then have a 7.5% carried interest in eight producing wells.

“We will have a 7.5% working interest in up to 5,000 barrels of oil per day,” said Robert Price, chairman.

The two existing wells at Niobrara produced revenues of £2.9mln during the four months ended March 2018.

Casflow rising

“Importantly, the company anticipates delivering sufficient cashflow to cover its overheads for 2019,” Highlands said in its update in November, adding it also seeing revenues from its water business.

At East Denver, Highlands has also received a US$58.5mln commitment from a US oil and gas focused private equity group to support an expansion of up to 24 wells at the site.

According to HNR, the East Denver project has an NPV10 range for six wells of between US$23.3mln to US$30.1mln.

An estimate for the full 24 wells sees this estimate increase to between US$96.6mln to US$124.5mln.

DT Ultravert

Away from its production arm, HNR also has its DT Ultravert technology, which has been proven to prevent ‘well bashing’ and enhance well productivity.

The process involves the injection of nitrogen gas into an existing well at the same time as a new nearby well is fracked.

Highlands has enjoyed some early stage success in deploying the technology but needs its own nitrogen supply represents one of the largest cost inputs.

As a result, it has been looking to produce its own nitrogen from a project in Kansas.

HNR’s thinking is that if it can start producing its own nitrogen, it will not only reduce the cost for its customers, but it will also improve its own margins and possibly create another revenue stream if it becomes a supplier in its own right.

HNR holds a 75% stake in the DT Ultravert technology patents.

Proposition 112

More generally, the oil and gas industry in Colorado had been boosted by the rejection in the state of Proposition 112, which would have demanded greater restrictions on fracking and the positioning of well sites.

It means that the current limits, requiring wells to be at least 500-feet from occupied buildings and 1,000-feet from school structures, won’t be increased.

Gas and helium potential in Montana

HNR also has its own gas operation in the form of the Helios Two project in Montana.

At 10.75p, Highlands’ market cap stands at £13.3mln.

 

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Thu, 22 Nov 2018 11:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209775/highlands-natural-looks-forward-to-new-wells-at-east-denver-209775.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120164041_13874101/ Tue, 20 Nov 2018 16:40:41 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120164041_13874101/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120163545_13874095/ Tue, 20 Nov 2018 16:35:45 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120163545_13874095/ <![CDATA[News - Highlands Natural plays down West Denver and sees revenues rising ]]> https://www.proactiveinvestors.co.uk/companies/news/209539/highlands-natural-plays-down-west-denver-and-sees-revenues-rising-209539.html Highlands Natural Resources Plc (LON:HNR) does not believe the withdrawal of its permit applications in West Denver will have a material impact on its near-term financial performance.

Revenues are being generated from the East Denver Colorado shale project and these should increase significantly when six new wells begin production in December to cover its overheads for 2019.

READ: Highlands Natural Resources withdraws all West Denver applications

In addition, the water resources business is also contributing revenue while the nitrogen project in Kansas should also start to produce sales next year.

Highlands originally applied for 104 permits in West Denver but withdraw them all after objections from the local community.

Half year results will be announced on 13 December.

In mid-morning trading, Highlands Natural Resources shares were 27.8% higher at 11.25p, bouncing back after sharp falls on Monday.

 -- Adds share price --

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Tue, 20 Nov 2018 07:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209539/highlands-natural-plays-down-west-denver-and-sees-revenues-rising-209539.html
<![CDATA[RNS press release - Update on Operations and Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120070020_13872739/ Tue, 20 Nov 2018 07:00:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181120070020_13872739/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119090549_13871637/ Mon, 19 Nov 2018 09:05:49 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119090549_13871637/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119090042_13871629/ Mon, 19 Nov 2018 09:00:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119090042_13871629/ <![CDATA[News - Highlands Natural Resources withdraws all West Denver applications ]]> https://www.proactiveinvestors.co.uk/companies/news/209436/highlands-natural-resources-withdraws-all-west-denver-applications-209436.html Highlands Natural Resources Plc (LON:HNR) has withdrawn all of the permit applications for its West Denver shale operation following objections by the local community.

The oil and gas group said it appreciates the concerns and debate raised by its development plans and was taking the action to affirm its commitment to being a responsible and transparent operator within the state of Colorado.

Originally, Highlands applied for 104 permits but trimmed these back to 76 last week before deciding to withdraw them all.

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Mon, 19 Nov 2018 07:46:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209436/highlands-natural-resources-withdraws-all-west-denver-applications-209436.html
<![CDATA[RNS press release - Colorado Shale - West Denver Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119070005_13870987/ Mon, 19 Nov 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181119070005_13870987/ <![CDATA[News - Highlands Natural trims permit applications at West Denver ]]> https://www.proactiveinvestors.co.uk/companies/news/208995/highlands-natural-trims-permit-applications-at-west-denver-208995.html Highlands Natural Resources Plc (LON:HNR) has trimmed the number of permit applications for its West Denver shale project in Colorado following discussions with regulators and locals.

Instead of 104, Highlands is now applying for 76 permits with 28 relating to areas nearby Standley Lake were withdrawn.

Robert Price, chairman, said: "As a company, Highlands is committed to the highest standards of operation and we had no hesitation in following the recommendations of the regulators and local interest groups. 

“Our West Denver Project covers over 5,200 acres and the minor amendment to our plans around Standley Lake is expected to have no bearing on the project's overall economic viability."

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Mon, 12 Nov 2018 08:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208995/highlands-natural-trims-permit-applications-at-west-denver-208995.html
<![CDATA[RNS press release - West Denver Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181112070005_13862530/ Mon, 12 Nov 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181112070005_13862530/ <![CDATA[News - Highlands Natural Resources shares rise ahead of fracking restart ]]> https://www.proactiveinvestors.co.uk/companies/news/208711/highlands-natural-resources-shares-rise-ahead-of-fracking-restart-208711.html Highlands Natural Resources Plc (LON:HNR) shares advanced in Wednesday’s early deals as the company told investors that hydraulic fracturing operations this week at the East Denver project.

It said that flow results from the new wells are expected in late December 2018 or early January 2019. The company also highlighted that the oil and gas industry in Colorado had been boosted by the results of yesterday’s election, which included a vote on Proposition 112.

READ: Highlands staggers remaining fracking operations after dry summer

Proposition 112 was not passed in the state. If it had, it would’ve demanded greater restrictions on fracking and the positioning of well sites.

It now means that the current limits, requiring wells to be at least 500-feet from occupied buildings and 1,000-feet from school structures, won’t be increased.

“This is a positive step for the Colorado oil and gas industry,” Highlands said.

“Highlands has already filed permits for a 104 well development programme at the West Denver Project and continues its discussions with potential partners for the development of its West Denver Project.”

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Wed, 07 Nov 2018 08:26:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208711/highlands-natural-resources-shares-rise-ahead-of-fracking-restart-208711.html
<![CDATA[RNS press release - Update Colorado Shale Operations ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181107070005_13857583/ Wed, 07 Nov 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181107070005_13857583/ <![CDATA[News - HNR to file for Colorado well permits ahead of ‘Proposition 112’ vote ]]> https://www.proactiveinvestors.co.uk/companies/news/207359/hnr-to-file-for-colorado-well-permits-ahead-of-proposition-112-vote-207359.html Highlands Natural Resources Plc (LON:HNR) told investors that it has filed applications with the Colorado Oil and Gas Conservation Commission (COGCC) for a larger scale development plan for the West Denver shale oil and gas project.

The applications aim to establish drilling and spacing units for a development of up to 104 wells.

READ: Fracking operations to stagger fracking at Highlands’ East Denver project

It intends to have filed the well permits with the COGCC prior to 6 November, which is when a controversial vote takes place in Colorado for ‘Proposition 112’ – which, if passed, will require fracking to be carried out further away from occupied homes, schools and vulnerable areas.

HNR noted that whilst similar propositions have failed in the past, it has been advised to file permits prior to the ballot to minimise the possible risks and impacts.

The company added: “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.”

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Thu, 18 Oct 2018 08:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207359/hnr-to-file-for-colorado-well-permits-ahead-of-proposition-112-vote-207359.html
<![CDATA[RNS press release - Colorado Shale - Permitting of West Denver Project ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181018070004_13833069/ Thu, 18 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181018070004_13833069/ <![CDATA[News - Highlands Natural to target fellow frackers with water recycling services ]]> https://www.proactiveinvestors.co.uk/companies/news/207155/highlands-natural-to-target-fellow-frackers-with-water-recycling-services-207155.html Highlands Natural Resources Plc (LON:HNR), the natural resources company, has formed Highlands Water Resources to provide services to the fracking industry.

Highlands has become a distribution partner to Epiphany Water Solutions, a Pennsylvania based manufacturer of water purification/desalination systems, to distribute the UK company’s E10X modular solar-powered water recycling units to operators across a range of key US states.

READ Highlands’ East Denver partners to stagger remaining fracking operations after dry summer

Following the successful deployment by Highlands of two E10x units in East Denver, Highlands plans to secure more customers for Epiphany’s technology and share the concomitant revenues with Epiphany.

Epiphany's pad-based water treatment technology has been previously tested and proven to be effective, Highlands said.

It provides a more economical and environmentally-friendly solution to water disposal and usage compared to current methodologies. The units remove most salt-based and chemical-based impurities with 95-100% efficiency, making the water produced during the fracking process reusable in further fracking operations. Consequently, the savings for operators can be considerable.

Montana Eagle formation flow back

Meanwhile, the company also gave an update on progress at the Helius Two gas and helium project in Montana.

Having completed the first stage of the fracturing system back in February the Highlands team is now installing autonomous systems for continuous long-term monitoring of gas rates.

READ Highlands Natural Resources reveals step toward commerciality at Helius Two gas project

Given the thickness of the formation, Highlands believes that it could stimulate the formation with potentially up to a dozen stages and achieve economic production. The ongoing testing will confirm over time how commercial the project is likely to be.

During the work on the Helios Two Well, Highlands has established that its 220,000-acre Muddy formation Montana asset, prospective for natural gas and helium, potentially contains billions of barrels of accessible water suitable for oil and gas hydraulic fracturing operations.

The project is close to the Powder River Basin, which is an ideal water source for use in hydraulic fracturing operations in the area.

Providing water resources in the Powder River Basin could make the development of the company's natural gas and helium project in the Muddy formation more economical, Highlands said.

Selling the produced water to operators and water companies in the Powder River Basin will provide an additional revenue stream for Highlands and significantly reduce disposal fees. Highlands is in talks with various technical and financial parties for the development of its Montana Muddy formation water resources.

"Clean water is a precious and vital resource to the US oil and gas industry and the lack of creative solutions available for disposing of water produced through fracking and the limited availability of water resources, exacerbated by the recent drought, has created an opportunity for innovators in the oil and gas services industry. We are excited to be working with Epiphany to develop an economically and environmentally sound solution to the complex problem of water resources management for the energy industry,” said Robert Price, .

"We are already receiving revenues from our initial programme with Epiphany at East Denver and we will now look to leverage our extensive regional industry network to secure additional customers for this innovative and potentially game-changing water recycling technology. In addition, we expect to deliver updates from Montana as we focus on exploring the potential of delivering water from this expansive project area. Through these initiatives, we believe that we can help alleviate the pressure of delivering significant volumes of water in order to complete a successful fracking operation," he added.   

My latest @forbes interview with Robert Price, CEO of Highlands Natural Resources - Listed In London, Drilling In Denver: Meet #Colorado Oilman Who Covets Barrels As Much As Technology https://t.co/qCzWLjPsPz #OOTT #oilandgas #HNR #shale

— Gaurav Sharma (@The_Oilholic) September 17, 2018 ]]>
Tue, 16 Oct 2018 08:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207155/highlands-natural-to-target-fellow-frackers-with-water-recycling-services-207155.html
<![CDATA[RNS press release - Highlands Water Resources and Montana Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181016070005_13829603/ Tue, 16 Oct 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20181016070005_13829603/ <![CDATA[RNS press release - Reduction of Capital Approved ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180925155001_13804230/ Tue, 25 Sep 2018 15:50:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180925155001_13804230/ <![CDATA[News - Highlands’ East Denver partners to stagger remaining fracking operations after dry summer ]]> https://www.proactiveinvestors.co.uk/companies/news/205305/highlands-east-denver-partners-to-stagger-remaining-fracking-operations-after-dry-summer-205305.html The hot and dry weather in Colorado over the summer months has forced Highlands Natural Resources PLC’s (LON:HNR) partners to revise the fracking schedule at the East Denver project.

Drilling operations at the six new wells at the project were completed in mid-July. The Grizzly well has been fracked, while fracking at the Ouray and Buckskin wells is about 60% complete.

READ: Highlands announces start of fracking at East Denver

The hot summer, one of the driest on record, has led to disruptions in water supply throughout the state and Highlands said its operations aren’t immune from these issues.

Water is essential to frack a well, with millions of gallons required to open tiny pockets or cracks in the shale rock in order to release the gas which had been locked away.

As a result, the well operator has decided to stagger the remaining fracking operations to compensate for the drought conditions.

The partners have requested additional water supplies, while Highlands is also moving two water recycling units to the project, which will treat the flow-back water. This fresh water will then be sold back to the operator.

Given the local competition for water, Highlands said just securing these back-up supplies was a “considerable achievement”.

The staggering of the remaining operations means the company now expects to finish up fracking in December with flow-back from the new wells later that month or early January.

At that point, Highlands will have a 7.5% carried interest in eight producing wells when these six additional wells come online.

Operations had been expected to be completed in October, with flow-back from the new wells originally due in November.

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Thu, 20 Sep 2018 08:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205305/highlands-east-denver-partners-to-stagger-remaining-fracking-operations-after-dry-summer-205305.html
<![CDATA[RNS press release - Colorado Shale - East Denver Operations Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180920070011_13797522/ Thu, 20 Sep 2018 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180920070011_13797522/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180821143858_13763345/ Tue, 21 Aug 2018 14:38:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180821143858_13763345/ <![CDATA[News - Highlands chairman announces the commencement of fracking on six new wells at East Denver ]]> https://www.proactiveinvestors.co.uk/companies/news/203280/highlands-chairman-announces-the-commencement-of-fracking-on-six-new-wells-at-east-denver-203280.html Robert Price, the chairman of Highlands Natural Resources Plc (LON:HNR), has revealed that fracking has just commenced at six new wells at the East Denver Project, one of two projects within the Colorado Shale division.

“We expect operations to be completed in October, with flowback from the new wells in November,” he said.

READ: Highlands Natural's projects offer multiple routes to goal

“The total number of producing wells at East Denver will increase to eight following successful flowback. This, together with the construction of a gas pipeline, which is expected to commence in September, will substantially increase our revenues from this scalable project which is being entirely funded by our partners.

 In addition, Price said that Highlands had increased its acreage position at the West Denver Project to 3,617 acres and entered into a surface access agreement.

“We have already identified the potential to drill at least 48 horizontal wells,” he said.

“We continue to increase our land position with an ongoing leasing campaign. As previously highlighted, discussions are underway with potential joint venture partners to finance this project. "Progress is also being made across our Enhanced Oil Recovery portfolio, and we are expanding our nitrogen project at low cost.”

 

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Tue, 21 Aug 2018 08:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203280/highlands-chairman-announces-the-commencement-of-fracking-on-six-new-wells-at-east-denver-203280.html
<![CDATA[RNS press release - AGM Statement ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180821070003_13762071/ Tue, 21 Aug 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180821070003_13762071/ <![CDATA[News - “Transformational” year for Highlands Natural Resources as it generates first revenues ]]> https://www.proactiveinvestors.co.uk/companies/news/201414/transformational-year-for-highlands-natural-resources-as-it-generates-first-revenues-201414.html Highlands Natural Resources Plc (LON:HNR) has reported its first revenues during what was a “transformational” six months for the junior oiler.

The London-listed firm brought two wells on stream at its East Denver Niobara project in Colorado earlier this year, generating £2.9mln during the four months ended March 31 2018 (2017: Nil).

Highlands also has permission to increase the number of wells at the project up to eight, with work currently underway to do just that.

READ: East Denver drilling completed successfully

The project can also count on a US$58.5mln commitment from a US oil and gas-focused private equity group to support an expansion of up to 24 wells at the site – each of which Highlands would have a 7.5% carried interest in.

In June, the company acquired the West Denver project, also in Colorado, where there is the potential to drill at least 48 wells.

Away from its production arm, HNR has also made “strong strides” with its DT Ultravert technology, which has been proven to prevent ‘well bashing’ and enhance well productivity.

The process involves the injection of nitrogen gas into an existing well at the same time as a new nearby well is fracked.

Highlands has enjoyed some early stage success in deploying the technology but is aware that the profitable and large-scale commercialisation of the service may depend on the company’s ability to improve cost efficiency – and nitrogen supply represents one of the largest cost inputs.

As a result, it has been looking to produce its own nitrogen and reported “significant flow rates” from the Barret 1-14b well at its Kansas nitrogen project last month. Highlands said it was “very encouraged” by the results, with purity levels over 99.59%.

READ: HNR reports “significant” flow rates from Kansas nitrogen project

HNR’s thinking is that if it can start producing its own nitrogen, it will not only reduce the cost for its customers, but it will also improve its own margins and possibly create another revenue stream if it becomes a supplier in its own right.

“This has been a transformational period for Highlands and we are very excited to have reported our first revenues,” said chairman Robert Price.

“This means that we enter the 2018/2019 financial year in a position of strength. We…expect to end the year with a carried interest in eight producing wells which, assuming they are as successful as the first two we drilled, will provide us with a 7.5% working interest in up to 5,000 barrels of oil per day.”

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Tue, 24 Jul 2018 08:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201414/transformational-year-for-highlands-natural-resources-as-it-generates-first-revenues-201414.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180724070009_13728376/ Tue, 24 Jul 2018 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/10732/LSE20180724070009_13728376/