Preliminary results are in for Imperial Helium (TSXV: IHC) as it relates to the deliverability of raw gas from its current two helium wells in Alberta. The study was conducted in conjunction with the firms plan to construct a production facility at the Steveville property, which required the study to be conducted to ensure sufficient capabilities were included at the facility.
On a combined basis, the first two wells of the company are expected to provide raw gas deliverability of 10 – 15 MMcf/d for an initial three year period. After three years, the two wells are expected to declined an estimated 15% per year over a period of up to 15 years.
The data is based on IHC-Steveville-3, which saw the Blow-Out Zone demonstrate deliverability of over 5 MMcf/d based on clean-up flow periods, and the Sub-Salt Zone, which tested at 2.5 MMcf/d, for a combined +7.5 MMcf/d of helium production at the well. IHC-Steveville-2 meanwhile has tested at 5-8 MMcf/d within the BOZ, while the SSZ is awaiting ongoing testing for further deliverability estimates.
While testing remains ongoing at the BOZ for IHC-Steveville-3, initial testing over the first three days has seen a second 5.5 hour clean-up period flow at 8 MMcf/d, while the first clean-up period flowed 5 MMcf/d.
“We are incredibly excited by what we are seeing from IHC-Steveville-3. The strong response of the BOZ and new SSZ in IHC-Steveville-3 confirms sufficient deliverability from both IHC-Steveville-2 and IHC-Steveville-3 to produce 10-15 MMcf/d of raw gas for three years before declining. This data strongly supports an aggressive advancement towards commercial production,” commented CEO David Johnson.
The company intends to immediately test the SSZ in IHC-Steveville-2 upon the testing at IHC-Steveville-3 being completed.
Imperial Helium last traded at $0.195 on the TSX Venture.
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