Total Helium (TSXV: TOH) continues to push forward with its intention of becoming a producer. The firm this morning indicated it has completed its first production well, with tests now ongoing.
The well, referred to as Boltz 35B, has seen the process of logging completed, with initial analysis indicating that a large gas transition zone was encountered. Data collected thus far reportedly is indicative of natural gas and helium being found in the formations that were intersected, with initial composition analyses being “in line with expectations.”
Further testing of the well is reportedly being conducted over two phases. The first phase consists of dewatering the well, which is being conducted via a submersible pump. Pipeline has reportedly already been laid to connect the well to a saltwater disposal facility, as well as to a natural gas and helium gathering system. Lower zones have been stimulated in the well, with the results of data collected to guide whether upper zones also need to be stimulated. Production tests will then guide development plans for the firms property.
Separately, the company has drilled its first disposal well 20 miles to the north of its first production well. That well has been cased and cemented, with the well to be deepened and allow for an open-hole completion. The well is currently 5,993 feet deep. A production well has been spudded on the same portion of land, referred to as Miller 9D.
The company has also engaged a consultant to determine whether horizontal drilling will result in increased economic efficiency for the project. Results from the first production well will help guide this decision.
Total Helium last traded at $1.66 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
