Highlands Natural Resources PLC (LON:HNR) told investors that initial production rates from the East Denver project have measured 4,600 barrels oil equivalent per day, and they are expected to rise further.
The production pad – to which the Buckskin, Citadel, Grizzly, Hagar, Ouray, Thunder, Wildhorse and Powell wells are attached – is flowing oil at a combined rate of around 4,053 Bopd while combined gas rates were 3.28mln cubic feet per day.
Highlands, which owns 7.5% of the project, highlighted that the project operator is advancing a conservative flowback plan which sees the wells being opened up slowly.
“As well as benefiting from the recently recovered oil prices, Highlands and its operating partner benefit from strong pricing for its gas, which is rich in liquids,” the company said in a statement.
“While the price for both the liquids and residual gas fluctuates, the effective sales price for the residual gas in the pipeline since the commencement of operations was $2.88 mcf.”