SASKATOON, SK, Aug. 5, 2021 /CNW/ - Royal Helium Ltd. ("Royal" or the "Company") (TSXV: RHC) (OTCQB: RHCCF) is pleased to announce that it has received the drill licence for its fourth helium well on its Climax land block located in southwestern Saskatchewan. Climax-4 is scheduled to spud on August 7th as a production offset well to Climax-3. Climax-4 will be specifically targeting the new Regolith helium discovery zone aimed at, and permitted for, producing the helium found in this formation at the Climax-3 location. The well is anticipated to take approximately 14 days to drill to a total depth of approximately 2,700 meters followed by a service rig to run completion testing and production analysis that is expected to take approximately 4 - 6 weeks. While testing Climax-4, the drill rig will be mobilized to southeastern Saskatchewan to begin drilling the first well on the Bengough land block.
Andrew Davidson, President and CEO comments, "We are pleased to have multiple, high-impact activities underway over the next several weeks and months - getting the Climax Regolith reservoir defined and on production and drilling 6 new wells over 3 separate land blocks in southeastern Saskatchewan where the highest historic helium concentrations have been recorded. Panther Drilling is mobilizing to site today with a view to spudding the well on Saturday".
The Regolith helium discovery zone showed consistent helium shows over a 100-meter (328 feet) interval with seismic re-interpretations indicating an areal extent of 12 square miles (12 sections). 39 meters of this zone was perforated and tested in Climax-3, with gas composition re-confirmed during sampling undertaken on July 6th, 2021. As a production offset to the discovery well, the Regolith zone in Climax-4 will be cored with samples analysed to determine the most effective technique of producing helium from this reservoir.
Completions and analysis of the Regolith formation will also be correlated with the recently performed completions testing of the shallower zones at Climax-1, 2 and 3. Preliminary indications show some association between the shallower Devonian helium zones and the larger Regolith below.
Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land in southwestern and south-east Saskatchewan. All of Royals' lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity.
For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.
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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.
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