Global Helium Hits 1.1% Helium At Manyberries, Completes Earn-In Arrangement
Global Helium (CSE: HECO) is reporting this morning that it has cut its landholdings in Saskatchewan down by two thirds following a review of its acreage portfolio.
The cuts have seen the company reduce its landholdings in the province from 1.8 million acres to just 660,000 acres. The cuts follow a review of seismic and geological data, with the company maintaining the “high-graded” Saskatchewan acreage, along with the proven Alberta land base.
On a positive note, the reduction has resulted in the elimination of $550,000 in permit leasehold obligations over the next two years.
The company at the same time reported success at its Manyberries asset, where two wells were drilled and completed in late 2023. The first well, 09-04, is reported to have flowed 11.6 MMcf/d under an absolute open flow test, which reduced to 2.8 MMcf/d under a stabilized flow test. Helium content is reported at 1.1%. A second well, 10-08, meanwhile demonstrated a stabilized flow rate of 0.4 MMcf/d, and 0.65% helium. The second well had lower flow rates due to near-wellbore damage during drilling operations, resulting in the interval used in well 09-04 being unusable.
A contingent resource was prepared following the completion of the two wells, resulting in a best estimate of 44 MMCF of gross unrisked helium contingent resources.
“The geologic data and helium concentrations we’ve encountered support the viability of further development in this area and we are proceeding with the necessary steps for expanded operations along with the planning of future production facilities,” commented Jesse Griffith, CEO.
Notably, terms of a farm-in and option agreement with Perpetual Energy have been met, with Global Helium now owning a 75% interest in 22 sections of helium prospective land in the Manyberries region. Going forward, the company has indicated its near-term focus will be facilities planning for the region as well as pursuing offtake partners.
Global Helium last traded at $0.13 on the CSE.
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