Royal Helium Ltd. V.RHC

sproule

[123600]

Is this a  teaser tht there is something with economic value to measure OR is Sproule going to actually do the testing which might mean a delay in getting results

[WesCoast]

Yeah, i don't understand this either? It would have been nicer if they were more clear on what this release meant

[TiredofWating]

Seems they are needed to produce an independent resource estimate.   Its one thing to measure concentrations at the well and another to determine the volume of the resource.   

[LaurinDE]

I take it as a positive sign...! If the helium concentrations were not worth it, there was no need to throw good money after bad and hire Sproule, only to get confirmation that the wells are uneconomic. L.

[SlackerSlave]

  I see it as a potentially good thing as well.  If they are economic, RHC has an independent 3 rd party confirming that and not just RHC saying it. Whether it's to provide shareholder confidence or entice a potential buy out, both good scenarios.  

[ExWEIMan2]

Sproule performing the reservoir testing is a neutral sign in and of itself.  I have waited many times for Sproule or their equivalent to develop an estimate of a reservoir's reserves for companies like Oilexco, Coastal, etc.  Sproule's report will talk about the porosity, permeability, areal extent, He column height, the need for in-fill drilling to delineate the reservoir, etc.

[Burtonio]

Thank you for sharing. Based on your experience in the situations you mentioned, how long has it generally taken for results to come back?

[ExWEIMan2]

The wait was usually about a month for a resource estimate from folks like Sproule and Cue.  The press release indicating Sproule was going to do this work was from Feb 18, so I would expect to see the estimate within the coming two weeks?  This assumes they have the results of the three Climax flow tests and the field's geological data to work with in their calculations.  IMO

[TiredofWating]

Would you not expect a NR on the flow tests (He concentration) before a resource estimate.   The Feb 11 NR indicated that additional and longer zones of testing would be conducted and that this would run longer than 2 weeks.  Those results could be released well before Sproule comes up with a resource estimate.