By Tom Winnifrith | Monday 27 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.
Highlands Natural Resources (HNR) is refusing to comment on the damning weekend expose HERE and hence its shares are tanking again - to 23.5p. It can stay silent on this matter but that just makes its shares even more uninvestable than before. I wonder if the regulators have got around to asking all about it yet? Instead, Highlands has published some total horseshit on its Helium assets it bought on 8 June 2016 for $91,050.73 and sold eight days later for £4 million in shares and £240,000 in cash in a bogus deal with Opera (OPRA) - HERE
The ramp is all about helping Opera raise £750,000 to allow it to do the joke deal. And so we are told that ( my comments in bold):
On 19th May 2016, Knowledge Reservoir LLC dba RPS ('RPS') was engaged by Highlands Natural Resources Plc ('Highlands') to provide a Competent Person's Report (the 'Report') on the resource potential of low saturation gas found in the Muddy Formation in southeast Montana, U.S.A (the Muddy Prospect).
Er so that was 20 days before Highlands bought these crap assets right?
The Muddy Prospect is located within the Northeastern part of the Powder Basin of southeast Montana and Wyoming which has been a prolific producer of hydrocarbons. Conventional exploration in the area has targeted and been developed in fields that exhibit normally expected hydrocarbon saturations with typical conventional flow characteristics.
However, many wells were drilled into equivalent reservoirs across the area through time and were reported as finding low gas saturation in brines (high water saturation) which would bubble and/or ignite at the surface but were not thought to be commercially productive, and certainly not in comparison to the high gas saturation accumulations that were being discovered at the time. Consequently, the low gas saturation reservoirs were ignored and classified as water-wet.
Er well here is a report from the US Government. The first oil flowed here in the 1800s and here are stacks of wells in this area. It is just that they are all small mom and pop operations. This is the sort of acreage you buy for 91 thousand dollars becuase that is all that it is worth.
However, two further developments have occurred since those times:
• The development of Helium gas in the area which now commands very high prices and is forecast to be increasingly short-supply;
• The advent of commercial "co-production" in other similar reservoirs which provide good analogues to support the belief that the high water saturation reservoirs in the Cretaceous of southeast Montana (and elsewhere in the local) could be a by-passed play.
Er so you think there is Helium there based on one well result from 1969. Good luck. Do you think this is as big as the Atlantis field which Paul Mendell bigged up as a world changer, blathering on about new extraction techniques in 2002 and which is still not producing? If this horsehit and the terms all sound familiar how about you have a look at this horse from Iofina (IOF) - founder Paul Mendell - from 2008. Swap Helium for Iodine and it is almost a cut and paste.
Horseshit, horseshit, horseshit, Highlands is all Horseshit. Sell.
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