Imperial Helium (TSXV: IHC) has found additional helium on its flagship Steveville property in Alberta. The firm this morning confirmed that it has discovered a second zone on the property, meaning that helium has been found in an additional layer of the Steveville structure.
Referred to as the Sub-Salt Zone, or SSZ, the zone was discovered upon the commencement of testing of the third well on the property. Initial gas analysis has pegged the helium content at 0.51%, which is 19% higher than concentrations found in the Blow Out Zone.
Pay thickness of the zone is currently estimated at 5.2 metres based on petrophysical testing conducted on the third well, with the zone having similar properties as the Blow Out Zone in the firms second well. No carbon dioxide has been found in the gas analysis of the well to date.
Production testing of the zone is now underway, which is expected to take ten days followed by a 20-day shut in period. Once complete, testing will then be conducted on the Blow Out Zone over a period of 30 days to test helium concentrations. Testing will also involve the monitoring of the zone in the second well, to determine if pressure communication is happening between the two regions.
Furthermore, the company also indicated that contingent resource estimates are expected to be established following the production testing of both zones on the well. Results from the Blow Out Zone are expected to be consistent will the results from the second well. The company expects to enter an offtake arrangement in the first half of the year, resulting in certain resources being classified as booked Reserves.
The company expects to produce commercial volumes of helium before year end.
Imperial Helium last traded at $0.18 on the TSX Venture.
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