Highlands Natural Resources shares rise on farm-in agreement

25th Jul 2016 14:48

(ShareCast News) - Shares in Highlands Natural Resources jumped on Monday after saying it has entered into a farm-in agreement with Renegade Oil & Gas Company in Arapahoe, Colorado.The deal will allow Highlands to drill up to six horizontal wells in acreage prospective for the Niobrara shale formation. Highlands is paying $500,000 to Renegande, including an initial payment of $250,000 for the right to drill the first two wells and a second payment of $250,000 for the following four.Highlands will retain a 100% working interest, which means full responsibility for drilling and operating costs, and will receive 80% of revenue generated by the wells.The company also said it in advanced talks with several industry partners regarding the joint financing and development of the farm-in acreage.Shares rose 9.55% to 29.99p at 1445 BST.