CALGARY, ALBERTA, Oct 07, 2021 (GLOBE NEWSWIRE) – Imperial Helium Corp. (“Imperial helium” or the “society“) Is pleased to announce that it has completed a successful evaluation of the Steveville structure on its helium property in southeast Alberta.
Imperial Helium has completed production testing of IHC-Steveville-1 and IHC-Steveville-2 as part of its program to evaluate two holes on the Steveville structure. IHC-Steveville-2 (103 / 10-22-020-12W4) is a key component of the report and is located on the top of the structure, next to the “blow-out well” at 100 / 13-22-020-12W4.
Production testing of IHC-Steveville-2 and IHC-Steveville-1
In IHC-Steveville-2, a 12 meter zone was perforated over an interval corresponding to the “blow-out zone” in compensation well 13-22. The perforated interval was tested at a rate of ~ 2 mmcf / d through a 14/64 inch restrictor, with a decrease of 5% over a period of 5.5 days. Gas analysis confirmed a helium concentration of 0.43%. The surface flow pressure was 1885 psi (13 MPa) which continued to increase over the entire flow period. The reservoir temperature was found to be 45.8 ° C (114.5 ° F). Fluid was produced at a rate of less than 1 bbl / mmcf. When closing, the pressure build-up took place almost instantaneously and remained constant during the entire closing time, which indicates a reservoir of higher quality.
Hole IHC-Steveville-1 (102 / 03-01-020-12W4) was along the sloping edge of the structure. Production test of an interval corresponding to the helium producing intervals in IHC-Steveville-2 and 13-22, produced formation water. The presence and depth of gas in the 13-22 well but only water in the IHC Steveville 1 well defined a narrow 10 m interval for gas / water contact. This result gives us increased confidence in defining the potentially producible resources within the structure.
Ongoing evaluation program and commercial development
Imperial Helium is currently integrating the results from IHC-Steveville-1 and IHC-Steveville-2 into its geological model. The company contracted IHS-Markit to conduct an independent pressure transient analysis of the production test data to determine potential production rates and reservoir extent. After that, the company will determine the next steps in the development of the project. In addition, the IHS Markit results along with geological, geophysical and petrophysical analyzes are forwarded to GLJ for resource certification.
As of October 6, 2021, the company has cash on hand of approximately $ 6.6 million, or $ 0.077 / share. This strong balance sheet gives the company flexibility and the ability to use capital to further develop its asset base.
In line with Imperial Helium’s strategic alliance agreement, the company is in advanced discussions with its EPC (Engineering, Procurement & Construction) partner ON2 solutions for the construction and delivery of a prototype facility. This facility is designed to expedite the planning of production facilities in Steveville and other opportunities. In addition, Imperial Helium is in talks with Offtake Partners to supply helium at first production, which is currently expected to begin at the Steveville property in 2022.
David Johnson, CEO and Director, commented, “It’s been a busy summer that lays the foundations for Imperial to move forward. The results indicate that Imperial Helium has identified, secured and delineated a helium resource in the Steveville structure and has taken an important step towards its goal of commercializing a helium resource in Steveville. In addition, the strategic alliance agreement has begun to help Imperial Helium advance the asset towards first commercial production in the second half of 2022. “
About the Steveville Helium Property
Imperial Helium’s Steveville property is located above a large, four-way shuttered cellar dome. The property is located approximately 200 km east of Calgary and 40 km northeast of Brooks, where Highways 544/876 intersect the structure and provide easy access for drilling and development. The property comprises 24,635 hectares (95 square miles) of land leased from Heritage Royalty Resource Corporation with rights to natural gas (including helium) beneath the base of the Big Valley and Nisku formations.
The first deep hole was drilled in the 13-22-020-12W4 area in the winter of 1940, which resulted in the Steveville blow-out due to a mechanical failure at the surface. After the well was brought under control, drilling resumed followed by production tests which returned 6 million cubic feet per day (6MMCf / d) of non-combustible gas. Four subsequent holes drilled to check 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 seismics to provide a better understanding of the basic structure and selected drilling locations.
Imperial Helium focuses on the exploration and development of helium resources in North America. Driven by Canadian geoscientific and technical expertise combined with its proprietary helium source database, the company is developing its asset base to meet growing global helium demand and supply shortages 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 the helium theme, please visit www.imperialhelium.ca
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Forward-looking and cautionary statements
Certain information in this press release constitutes forward-looking information under applicable securities laws. Forward-looking information typically includes statements such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “Project,” “will,” or similar words that suggest: future results or statements about an outlook. Forward-looking information in this press release may include, but is not limited to, statements about: the Company’s exercise of option under the lease; Drilling activities; Discovery activities, including rediscovering and recording the Steveville Blowout; and the company’s business plan in general, including helium development and recovery. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Imperial. While Imperial believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on any forward-looking statements because Imperial cannot guarantee that they will prove to be correct. Because forward-looking statements address future events and conditions, they by their nature involve inherent risks and uncertainties. Actual results could differ materially from those currently expected 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), restrictions on the availability of services, fluctuations in raw material prices and exchange rates, the current COVID-19 pandemic, changes in legislation affecting the helium industry, adverse weather or downtime conditions and uncertainties due to potential delays or changes to plans in relation to exploration or development projects or capital expenditures.
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