Highlands Natural Resources signs licence deal with Calfrac Well Services

23rd May 2016 12:33

(ShareCast News) - Highlands Natural Resources has signed a licence agreement with US pressure-pumping provider Calfrac Well Services for the use of its DT Ultravert re-fracking technology.Shares in Highlands were up more than 30% on the news.In May 2015, it acquired a 75% stake in US-based Diversion Technology's current and future patent applications covering a new diverter well-stimulation technology, DT Ultravert.Calfrac has licensed DT Ultravert on a shared exclusivity basis for use in connection with its commercial hydraulic fracturing operations, activities and services in seven US states.The licence agreement has an initial term of two years. Thereafter it would automatically renew for consecutive one-year periods, unless and until terminated.In addition, Highlands has the exclusive right to market nitrogen gas to CalFrac at current market rates for all fracking operations undertaken by that company using DT Ultravert throughout the term of the licence agreement.CalFrac would endeavour to provide certain data to Highlands, which it and Diversion might use with a view to the further development of the DT Ultravert technology.Highlands and Diversion were also entitled to a 2% royalty based on the revenue received by CalFrac from each fracking operation during the term of the licence agreement which uses the DT Ultravert re-fracking technology.