Highlands On Track with Denver, US Wells

London-listed Highlands has successfully drilled and set surface casing in both the Wildhorse and Powell wells in East Denver, US, it said August 18, adding operations had gone smoothly so far. Consistent with the plan and timeline announced  August 11, Highlands is now drilling the remainder of the Powell well, which targets the Niobrara C formation and should reach its final depth in about two weeks, it said.

It spud Wildhorse August 10 and then moved the rig to the Powell well, and both are now about 2,100 ft deep. Surface casing has been set and cemented successfully in both wells. 

Drilling operations for the Powell well are expected to continue to the targeted total depth of 18,247 ft representing the total vertical and horizontal distance drilled in the well. Upon reaching TD, the Company will update the market with the results of drilling, including the portion of the horizontal wellbore placed in the Niobrara reservoir, which is a leading indicator of the well’s productive capacity.  

CEO Robert Price said it had completed surface casing for the first two wells in line with stated operational plans and timelines. He said he looked forward to "updating the market of additional milestones after we drill the remainder of the Powell well and have the opportunity to analyse resulting geologic and reservoir data, which will be helpful indicators of the well’s productive potential. With the support of our financial partners and top quality contractors and advisors, I am confident in Highlands’ ability to execute the East Denver operations plan and to deliver first oil, first gas and first revenue to shareholders.”

It said the gross proved reserves were 424,167 barrels of oil equivalent/well and gross proven plus probable reserves were 539,667 boe/well. Earlier in August it decided to issue 1.8mn new shares, in lieu of cash payments to its advisers, to free up more money for East Denver.

William Powell