Business
Placing to Raise £1.56 million
Placing to Raise £1.56 million.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \nRNS Number : 0875P Highlands Natural Resources PLC 29 August 2017 \n\n29 August 2017\n \nHighlands Natural Resources plc ('Highlands' or 'the Company')\nPlacing to Raise £1.56 million\n \nHighlands, the London-listed natural resources company, is pleased to announce a placing of 7,818,000 new ordinary shares at 20 pence per share to raise £1,563,600 (the \"Placing\") gross. The net proceeds from the Placing will enable the Company to enlarge its current operations at its East Denver Niobrara shale oil and gas project in Colorado (the \"East Denver Project\"), where drilling is currently underway, to include the completion of two extended lateral wellbores in the Niobrara formation.\n \nHighlands' Chairman and CEO Robert Price said, \"Today's over-subscribed Placing enables Highlands to execute an exciting operations programme at East Denver with larger scale and significantly enhanced efficiency. The two-well approach to drilling and hydraulic fracturing minimizes equipment down-time and equipment mobilizations, thereby achieving important savings in both costs and time. The Company also hopes to benefit from additional production data as a two-well completion plan is intended to achieve production from both the Niobrara B and Niobrara C formations, which better enables our forward planning of additional development. Most important, today's Placing in combination with the two major third party funding commitments secured since July have put Highlands on a path to potentially achieve significant oil and gas production in the near term, which I view as being transformational for Highlands and our shareholders.\"\n \nBackground\n \nAs announced on 6 July 2017 and set out in its prospectus published on that date, Highlands had raised sufficient funds to drill and complete one well at its East Denver Project. However, with the benefit of the additional proceeds from the Open Offer concluded on 31 July 2017, the Company subsequently upgraded these plans on 11 August 2017 to drill two wells (the Powell and Wildhorse wells) and complete one well. This upgraded approach of sequentially drilling two wells offered significant advantages including added geologic data and operational efficiency.\n \nOn 23 August 2017, Highlands announced a participation agreement (the \"Participation Agreem...