 rose on Wednesday, following the announcement of further third-party funding for East Denver.){kind=link}
Shares in Highlands Natural Resources (LON:HNR) rose on Wednesday, following the announcement of further third-party funding for East Denver.
The company, which specialises in natural resource exploration, announced that it has executed a participation agreement for its East Denver Niobrara shale oil and gas project in Colorado.
According to the statement, the agreement includes drilling and completions costs for a minimum of four wells and maximum of 24 wells.
Alongside a Joint Development Agreement announced last month with Raisa, the commercial terms of agreement facilitate Highlands to achieve a “long term working interest in the Programme Wells of 70 percent”.
In addition, Highlands will “receive a pro-rata reimbursement of its East Denver land costs on a well-by-well basis upon the spud of each well” the statement continued.
Highlands’ Chairman and Chief Executive Officer Robert Price commented on the development:
“In the past month, we have secured investment into East Denver from a leading US private oil and gas investment company and now a leading oilfield services provider. Not only does this provide outstanding third-party validation of our East Denver Project but it positions Highlands to advance and accelerate our drilling operations there.
“Drilling operations are now underway at East Denver, and we will continue our updates to investors in due course.”
Mr Price has previously had a successful career overseeing various oil and gas developments across North America and Eastern Europe, prior to his role at Highlands.
Highlands Natural Resources has been in operation as of November 2014, with a listing on the London Stock Exchange as of March 2015.
Its core US assets alongside its East Denver project, include DT Ultravert technology and Helios 2 in the state of Montana, which is predominately concerned with helium and natural gas development.
Amid the news, shares in Highlands rallied considerably on Wednesday morning.
Shares in the company are currently up 10.49 percent as of 13.53PM (GMT).