CALGARY, Alberta, Oct. 07, 2021 (GLOBE NEWSWIRE) -- Imperial Helium Corp. (“Imperial Helium” or the “Company“) is pleased to announce it has completed a successful appraisal of the Steveville structure on its Helium Property, located in Southeastern Alberta.
Imperial Helium has completed the production testing of IHC-Steveville-1 and IHC-Steveville-2 as part of its two well appraisal well program of the Steveville structure. IHC-Steveville-2 (103/10-22-020-12W4) is a key component of the appraisal, located on the crest of the structure, adjacent 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 equivalent to the “blow-out zone” in the offsetting 13-22 well. The perforated interval tested at a rate of ~2mmcf/d through a 14/64 inch choke, at a drawdown of 5% over a period of 5.5 days. Gas analysis confirmed a Helium concentration of 0.43%. The flowing pressure at surface was 1885 psi (13Mpa) which continued to increase over the entire flow period. Reservoir temperature was found to be 114.5°F (45.8°C). Liquid was produced at a rate of less than a 1bbl/mmcf. Upon shut-in the pressure build-up was near instantaneous and remained constant through-out the shut-in period, which is indictive of a higher quality reservoir.
The IHC-Steveville-1 well (102/03-01-020-12W4) was located along the down-dip edge of the structure. Production testing of an interval equivalent 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 has defined a narrow 10m interval for a gas/water contact. This result provides us with increased confidence in defining the potential producible resources within the structure.
Continued Appraisal Program & Commercial Development
Imperial Helium is currently integrating the results of IHC-Steveville-1 and IHC-Steveville-2 into its geological model. The Company has engaged IHS-Markit to conduct an independent pressure transient analysis of the production test data to help establish potential production rates and reservoir extent. Following this, the Company will make a determination of next steps in the development of the project. In addition, the IHS-Markit results along with geological, geophysical, and petrophysical analyses will be forwarded to GLJ for resource certification.
As of October 6, 2021, the Company has a cash balance of approximately $6.6 million or $0.077/share. This strong balance sheet gives the company flexibility and the ability to deploy capital towards the continued development of its asset base.
In line with the 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 Plant. This plant is intended to expedite the design of production facilities at Steveville and other opportunities. In addition, Imperial Helium is in discussions with Offtake Partners for the delivery of helium upon first production, currently anticipated to commence from the Steveville property in 2022.
David Johnson, CEO and Director commented, “It has been a busy summer that sets the building blocks for Imperial to push forward from. The results indicate that Imperial Helium has identified, secured and delineated a helium resource at the Steveville structure and has taken a key step towards its goal of commercializing a helium resource at Steveville. In addition, the Strategic Alliance agreement has begun to assist Imperial Helium in advancing the asset toward to first commercial production in the second half 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 13-22-020-12W4, which, owing to a mechanical failure on surface, resulted in the Steveville blow-out. After the well was brought under control, drilling resumed followed by production testing which came in at six million cubic feet a day (6MMCf/d) of non-burnable gas. 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 has acquired seismic to provide an improved understanding of the basement structure and select drilling locations.
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
For additional information please contact:
| David Johnson Chief Executive Officer djohnson@imperialhelium.ca +1-403-978-9878 | David Robinson Chief Financial Officer drobinson@imperialhelium.ca +1-604-308-2514 |
Imperial Helium Corp. 500, 736 8th Avenue SW Calgary, Alberta T2P 1H4 |
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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