Production testing has begun for Imperial Helium (TSXV: IHC). This news was announced this morning in a brief press release, wherein the company revealed it has moved to the next phase of development for its Steveville assets in southeast Alberta.
Production testing is said to occur on several zones in the first well drilled by the company, IHC-Steveville-1. Production testing will look to complete and evaluation the commercial viability of the well. Testing will focus on helium concentration, gas composition, the quality of the reservoir, and potential production rates that can be expected from multiple zones within the well.
“The production tests are our first appraisal of the Steveville structure and are anticipated to contribute toward validation of the structure’s resource potential. An independent resource assessment will be conducted upon completion of the production testing of both IHC-Steveville-1 and IHC-Steveville-2,” commented CEO David Johnson.
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To date, the company has denoted that the well intersected 152 metres of the Beaverhill Lake Formation, where gas intervals based on preliminary data are in-line with pre-drill estimates made by the company, while also being consistent with historical data.
The company reportedly is on schedule to complete a resource estimate in Q4 2021.
Imperial Helium last traded at $0.34 on the TSX Venture.
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