logo-loader
viewZoetic International PLC

Highlands Natural Resources: Well services technology worth three times current share price

DT Ultravert is on test with the oil field services giant Schlmberger and potentially solves the problem of ‘bashing’.

onshore drilling operation
New technology can enhance existing oil fields

Highlands Natural Resources Plc’s (LON:HRN) breakthrough drilling technology is conservatively worth triple the current market capitalisation of the whole firm, a senior director told Proactive Investors.

DT Ultravert is on test with the oil field services giant Schlumberger (NYSE:SLB) and potentially solves the problem of  ‘bashing’.

This is a reservoir damaging problem seen in shale operations with high well density.

Bashing occurs when a new well (typically referred to as the ‘child’) is fracked in a close proximity to an older, already producing well (known as the ‘parent’).

Fracking fluids can infiltrate the well bore in the parent, causing damage that leads to reductions in both production and reserves.

Anything that prevents bashing could be a significant tool to oil companies under pressure as the crude price bobbles along below US$80 a barrel.

Cully Cavness, head of finance and business development at Highlands, said an independent validation of DT Ultravert had been carried out by a “third party engineer”.

It put a preliminary net present value on the technology of £38mln (US$50mln), using a 10.5% discount rate.

That compares with company’s current market capitalisation, which stands at £11mln.

“DT Ultravert could be that next phase; the solution for the economic and efficient of infilling of discoveries,” he told Proactive’s Juliet Mann.

Quick facts: Zoetic International PLC

Price: 8.05 GBX

LSE:ZOE
Market: LSE
Market Cap: £11.92 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Zoetic International PLC named herein, including the promotion by the Company of Zoetic International PLC in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Zoetic International's Nick Tulloch updates as it begins trading on the OTC

Zoetic International PLC's (LON:ZOE) Nick Tulloch speaks to Proactive London's Andrew Scott after they began trading on the over-the-counter (OTC) market in the USA. Tulloch says the OTC market in the US should help to increase the liquidity of its shares.  No new ordinary shares were...

4 days, 4 hours ago

RNS

Issue of Equity

3 days, 7 hours ago

Second Price Monitoring Extn

4 days, 3 hours ago

Price Monitoring Extension

4 days, 3 hours ago

Listing on the OTC

6 days, 10 hours ago

Issue of Equity

1 week, 2 days ago

Notice of General Meeting

1 week, 3 days ago

Second Price Monitoring Extn

2 weeks, 2 days ago

Price Monitoring Extension

2 weeks, 2 days ago

2 min read