Business
Expanded Renegade Agreement, East Denver
Expanded Renegade Agreement, East Denver.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \nRNS Number : 0848Z Highlands Natural Resources PLC 10 March 2017 \n\n10 March 2017\n \nHighlands Natural Resources plc ('Highlands' or 'the Company')\nFurther East Denver Acreage Acquisition and Expanded Agreement with Renegade Oil & Gas\n \nHighlands, the London-listed natural resources company, is pleased to announce that it has executed an expanded agreement (the \"Agreement\") with Renegade Oil & Gas Company LLC (\"Renegade\"). \n \nThe Agreement both significantly enhances the Company's land position in its East Denver, Colorado, Niobrara shale play and enables operational flexibility that will provide the Highlands' engineering team with the potential to save up to US$500,000 per well. Additionally, this Agreement, by virtue of placing direct control of the lease in the hands of Highlands, simplifies and accelerates a number of procedural, administrative and regulatory matters related to drilling additional wells beyond the first six wells specified in the original Renegade agreement.\n \nPursuant to the Agreement, Highlands acquired full control of the Niobrara oil and gas lease covering 640 acres in Arapahoe County, CO. The acquired lease covers Section 15 of Township 5S 64W, where Highlands had previously farmed-in to Renegade's position. Under the previous farm-out agreement, Highlands was required to drill its first four East Denver wells as tightly spaced pairs in the extreme south and extreme north of Section 15, then to spud a third pair of wells in Sections 32 and 33 to the south.\n \nThrough the new Agreement with Renegade, Highlands now has the ability to drill wells based on internal assessments of optimal spacing, well design and placement. Highlands also now holds significantly greater control and flexibility in the timing and sequencing of drilling operations, which facilitates 'pad drilling'. 'Pad drilling' is the batch drilling of multiple horizontal shale wells from a centralized operations pad. A significant advantage of this is that it enables Highlands to accelerate the original drilling timeline by consolidating multiple disparate well locations into efficient and centralised pads. Consequently, Highlands has filed increased density applications with the Colorado Oil and Gas Conservation Commission, which if approved, would take...