CALGARY, Alberta, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Imperial Helium Corp. (“Imperial Helium” or the “Company”) (TSX-V: IHC) is pleased to announce positive results from IHS Markit’s independent production test analysis of the IHC-Steveville-2 well (103/10-22-020-12W4) and the Company’s intention to spud a third well in the fourth quarter of 2021.
Positive Independent Production Test Analysis / On Guidance
The results of IHS Markit’s pressure transient analysis from the “blow-out” zone in 103/10-22-020-12W4 meet and exceed expectations, with very good porosity, high permeability, and the capability to drain, at a minimum, four square miles of reservoir.
IHS Markit’s analysis is consistent with results from the blow-out well 100/13-22-020-12W4. More specifically, the reservoir in 103/10-22 is over pressured with a P* of 2,433 psia, a porosity of 15%, a permeability of 60 to 80 milli-Darcies, and an Absolute Open Flow of 22.6 mmcfd. Furthermore, the 103/10-22 well is capable of a sustained production rate between 5 to 8 mmcfd at a surface pressure of 1,000 psi with less than a 15% sandface drawdown for a minimum of three years before decline. Importantly, these results are on point with the Company’s guidance to have a production facility with a throughput capacity of 10 mmcfd of raw gas from two-wells on stream in the fourth quarter of 2022.
Third well in Fourth Quarter 2021
Imperial Helium also announces today that it is proceeding with drilling another well in the Steveville structure this fall. This appraisal/development well targets a local high on the Steveville structure between IHC-Steveville-2 and IHC-Steveville-1, and will twin an existing well, 16-11-020-12W4. There is a strong positive correlation between IHC-Steveville-2 and 16-11-020-12W4, and the Company anticipates comparable results to IHC-Steveville-2.
David Johnson, Director and CEO commented:
“The IHS-Markit independent production-test analysis is a great confirmation of our understandings. These findings will help us to refine our field development plan, production rates and facilities design as we rapidly press toward development of our Steveville asset. We anticipate this next well will become our second producing well, alongside IHC-Steveville-2. In the first quarter of 2022, we intend to demonstrate our ability to produce 99.999% pure Helium from the prototype plant and anticipate completion of a gas-offtake agreement in the same period. We remain on schedule for first production of helium from the Steveville asset in the fourth quarter of 2022.”
About the Steveville Helium Property
Imperial Helium’s Steveville property is situated over a large basement dome feature with four-way closure. The property is approximately 200Km east of Calgary and 40Km northeast of Brooks where highways 544/876 cross the structure, providing easy access for drilling and development. The property includes land leased from Heritage Royalty Resource Corporation covering 24,635 hectares (95 square miles), with rights for natural gas (including helium) below the base of the Big Valley and Nisku formations.
In the winter of 1940, the first deep well to be drilled in the area was 100/13-22-020-12W4, which, owing to a mechanical failure on surface, resulted in the Steveville blow-out. Production testing reported six million cubic feet a day (6MMCf/d) of non-burnable gas, dominantly nitrogen. Four subsequent wells, drilled exploring for hydrocarbons, 08-22-020-12W4 (1947), 14-11-020-11W4 (1953), 16-11-020-12W4 (1974), and 01-24-020-11W4 (2002) confirm the structure. Imperial Helium acquired seismic to provide an improved understanding of the structure, and has drilled two appraisal wells, IHC-Steveville-2 (103/10-22-020-12W4) and IHC-Steveville-1 (102/03-01-020-12W4), to define the resource potential on the Steveville structure. IHC-Steveville-2 confirms the presence of producible gas in the Steveville structure with a Helium concentration of 0.43%.
About Imperial
Imperial Helium is focused on the exploration and development of helium assets in North America. Driven by Canadian geoscience and engineering expertise, in combination with its proprietary helium well database, the Company is developing its asset base to meet the growing global helium demand and supply shortfalls in the market. Imperial Helium’s operations office is based in Calgary, Alberta, and is listed on the TSX Venture Exchange under the symbol “IHC”. To learn more about the Company and expand on the subject of helium, please visit www.imperialhelium.ca
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Forward-Looking and Cautionary Statements
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “will” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning: the exercise of the Company’s option under the Lease Agreement; drilling activities; discovery activities including re-discovering and capturing the Steveville blow-out; and the business plan of the Company, generally, including helium development and extraction. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Imperial. Although Imperial believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Imperial can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the helium industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the helium industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The forward-looking information contained in this press release is made as of the date hereof and Imperial undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
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