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Highlands Natural Resources: Now you are contradicting yourselves - where has the money gone?

By Tom Winnifrith, The Sheriff of AIM | Friday 10 June 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


The bullshit from this over-ramped jam tomorrow AIM piece of crap continues but with the shares tumbling to 53p on the latest RNS fantasy perhaps the penny is dropping. The problem the rampers have is that they have spouted so much horseshit in a deluge of RNS releases that they are now contradicting themselves. So let's deal with Schlumberger.

On 25 September 2015 were were told that a deal with Schlumberger had been signed and

The indicative agreement provides that Schlumberger will evaluate DT Ultravert by assessing the data gained from five field trials within one year.

Ok.

Wind forward to January 29 2016 and we are told:

The Company is pleased to announce that it has raised approximately £765,000 (before expenses) pursuant to a placing (the "Placing") of 6,375,000 Ordinary Shares (the "Placing Shares") at a price of 12 pence per Placing Share.

On 25 September 2015, the Company announced that it had signed indicative terms ("Indicative Terms") for a licence agreement with Schlumberger Technology Corporation ("Schlumberger"), a 100 per cent. owned subsidiary of Schlumberger Limited, the world's leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry.

The net proceeds of the Placing will be applied towards both the expenses and any other costs associated with the field trials to be undertaken in accordance with the Indicative Terms.

Okay.

Today we are told:

Schlumberger has reached agreement with their client to carry out testing of the DT Ultravert technology on some of the client's wells at no cost to Highlands or Diversion

The test wells are located in the Piceance basin of western Colorado

Water allocation logistics are currently being overcome and testing is now expected to take place between July and, at the latest, September

The Company expect to be able to announce the results of these tests in the coming months and, if proved successful, DT Ultravert will represent a game-changing technology in the oil and gas industry, transforming the economics associated with increasing production through the re-fracking of previously fracked horizontal wells

Ends

Er... So does "some" (today) equate to five ( last September) wells? And its not now Schlumberger doing the testing but its clients. But the biggest "issue" is that we now discover - five months after a January placing to fund these trials that in fact DT/Highlands does not need to pay a cent towards these trials. So will it hand back the cash? Can it confirm that all the cash raised is still there? If not where has it gone and had this new deal not been done how was DT going to stand its corner?

You will remember that DT was a start up owned by Highland's CE) and another key Highlands figure that was vended into Highlands for vast amounts of shares. This whole rampfest begs so many questions it is just a 100% bargepole stock


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