Highlands Natural Resources Plc (LON:HNR) has unveiled a new licensing deal for its 75% owned DT Ultravert re-fracking technology.
Calfrac Well Services Corp, a leading US pressure-pumping provider, has now licensed DT Ultravert on a shared exclusivity basis for commercial hydraulic fracturing business in seven states.
Initially it is a two year contract, rolling over to renew automatically for consecutive one year periods. A 2% revenue royalty payment will be paid by Calfrac from each re-fracking operation during the term of the contract.
Additionally, Highlights noted that CalFrac will endeavour to data from operations which can be used a view to the further development of the re-fracking technology.
Robert Price, Highlands chief executive, said: “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.”