production testing has started... if the results are as expected, this will be a >1 CAD stock by the end of the month, imho
L.
SASKATOON, SK, March 3, 2021 /CNW/ - Royal Helium Ltd. ("Royal" or the "Company") (TSXV: RHC) announces that it has engaged two service rigs and that the completions and testing program has been initiated at Climax-1 and Climax-2. The finalized testing program, which was developed in concert with Sproul Associates Ltd., involves the sequential perforation and gas flow testing of several separate intervals identified during drilling. Finalized results from the testing program will be reported as the information becomes available.
Royal further announces that the Climax-3 helium well has been drilled to its target depth of 2,600 metres. Royal's completion team is reviewing the log data at Climax-3 to determine the intervals to be production tested. The completion and testing program at Climax-3 will commence once testing is complete on Climax-2.
Andrew Davidson, President and CEO of Royal comments, "We are pleased to have our initial 3 wells at Climax drilled to target depth and we are excited to be production testing these high value targets. We want to thank the team from Savanna 419 for their diligent work in completing this drilling program safely and effectively".
Mr. Davidson continues "With 2 service rigs operating we anticipate the testing to be completed on all 3 wells over the next few weeks. While any significant developments will be announced as they are received, all results will be evaluated by Sproule for a potential helium resource and production over multiple separate zones within this large structural closure".
The three Climax wells were drilled into the Precambrian basement, directly below the Deadwood Formation. The Deadwood is a sand and shale sequence that is a known helium production zone in Saskatchewan. These first three wells are targeting different parts of the same large structural trap identified on the central portion of the Climax land block.
Qualified Person: Stephen P. Halabura P. Geo. the Company's Vice President of Exploration is a Qualified Person (as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) and has reviewed and approved the technical disclosure contained in this news release.
About Royal Helium Ltd.
Royal is focused on the exploration and development of primary helium production in southern Saskatchewan. With over 400,000 hectares of prospective helium lands held under permits, leases and applications, Royal is one of the largest helium leaseholders in North America. Located next to highways, roads, cities and importantly close to existing oil and gas infrastructure, Royal's projects were methodically evaluated for helium potential for over two years, and have been vetted by helium experts, professional geologists and engineers.
For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
SOURCE Royal Helium Ltd.