Imperial Helium Corp (TSX-V:IHC, OTCQB:IMPHF) has revealed positive results from an independent production test analysis of the Sub-Salt Zone in the IHC-Steveville-3 well that showed “significantly more valuable” gas.
Tests conducted by IHS Markit calculated absolute open flow rate of 13.3 million cubic feet of gas per day (mmcf/d), and the capability of sustaining production rates of 2.5 mmcf/d for three years before decline.
In a statement, Imperial Helium said that the Sub-Salt Zone (SSZ) gas is more valuable as it has 18.6% more helium and essentially no carbon dioxide (CO2), eliminating expenses associated with removing the CO2 and putting the acid gas back into the ground.
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Other information gleaned from the study highlighted the SSZ is below the Blow-Out Zone (BOZ), and each are found in both the IHC-Steveville-2 and IHC-Steveville-3 wells. As well, the SSZ and BOZ are two distinct stacked reservoirs with different gas compositions.
Imperial Helium Corp (TSX-V:IHC, OTCQB:IMPHF) (IHC) told investors that it will move up hole and start a production test on the BOZ now that production testing of the SSZ is complete.
BOZ will undergo a 30-day production test in line with those tests done in IHC- Steveville-2, IHC said. In addition, the firm will conduct a high-flow rate test to confirm the capacity of the BOZ to produce at rates of 5 to 8 mmcf/d as previously demonstrated by the pressure-transient production test of the BOZ in IHC-Steveville-2 last summer.
The BOZ and SSZ in IHC-Steveville-2 and IHC-Steveville-3 together have demonstrated sufficient productive capacity to support a planned 10 mmcf/d facility, IHC CEO David Johnson told shareholders.
“Pending completion of production testing of the BOZ in IHC-Steveville-3, we anticipate the production potential from these two wells may warrant an increase to our planned facility size,” Johnson said. “The exact size of that facility will depend on any additional productive capacity that may arise from further stimulation and production testing of the BOZ and SSZ in IHC-Steveville-2."
Imperial Helium is focused on the exploration and development of helium assets in North America, primarily at its Steveville, Alberta helium discovery.
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