Helium Evolution (TSXV: HEVI) has struck out on its first well drilled in Saskatchewan with North American Helium. The well represents the first of several to be drilled under a farmout arrangement entered into between the two firms in mid-2022.
The first well, drilled near to Mankota, Saskatchewan, reportedly reached total depth this weekend however the open hole portion of the first test well is to be abandoned. The cased in portion of the well is meanwhile being suspended, enabling the company to have the “optionality” of re-entering at a later date for the potential drilling of a sidetrack to another target.
“The data provided from this First Test Well affords both NAH and HEVI with valuable insights and additional understanding of what is effectively still a ‘wild-cat’ play. NAH’s Second Test Well will be drilled before year end 2022, providing HEVI with potential near-term upside, while maintaining the ability to conserve HEVI’s capital,” commented CEO Greg Robb.
The second well under the program is set to begin drilling in mid-December, at a different location on Helium Evolution’s lands.
The current farmout arrangement sees North American Helium hold the right to drill up to 8 wells on 4 different blocks of land held by Helium Evolution. Helium Evolution retains a 20% working interest in the sections drilled, and maintains the right to participate in the development of the wells at 20% working interest.
Helium Evolution last traded at $0.28 on the TSX Venture.
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