Imperial Helium Confirms Deliverability Of 10-15 MMCF/D At Steveville

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.

FULL DISCLOSURE: Imperial Helium is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Imperial Helium on The Deep Dive, with The Deep Dive having full editorial control. Additionally, the author personally holds shares of the company. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

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