Imperial Helium Corp (TSXV: IHC) continues to see success from its production tests of zones found on its helium property in Alberta. The firm this morning released positive results of an independent production test carried out over a period of thirty days at its most recently drilled well.
The analysis, which was conducted by IHS Markit, was conducted on the Sub-Salt Zone, which was recently identified in the firms third helium well at the Steveville property. The results point to the zone being capable of sustaining production at a rate of 2.5 mmcf/d over a period of three years before decline begins, with an absolute open flow rate of 13.3 mmcf/d.
Notably, the gas composition found within the zone is more valuable than that of the Blow-Out Zone, which was initially targeted by the company. The zone has been found to contain helium at a concentration of 0.51%, compared to compositions of 0.43% in the Blow Out Zone. It also contains no CO2, which reduces the expense of removing that gas.
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IHS Markit will now conduct a similar 30-day test analysis on the Blow Out Zone within the firms third well to confirm that the zone will be able to produce at rates of 5-8 mmcf/d, similar to the second well.
The company is currently intending to bring both the Blow Out Zone and the Sub-Salt Zones at well’s two and three into production, which is expected to significantly improve the production of helium on site. Commenting on this, CEO David Johnson stated, “In combination, the BOZ and SSZ in IHC-Steveville-2 and IHC-Steveville-3 have demonstrated sufficient productive capacity to support our planned 10mmcf/d facility. Pending completion of production testing of the BOZ in IHC-Steveville-3, we anticipate the production potential from these two wells may warrant an increase to our planned facility size.”
Imperial Helium last traded at $0.165 on the TSX Venture.
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