Imperial Helium (TSXV: IHC) this morning announced that it has completed its appraisal of the Steveville structure on its flagship property in Southeast Alberta. Production testing of both its first and second wells have been completed.
At IHC-Steveville-2, the company tested the well at a rate of 2 mmcf/d across a 12 meter zone. Helium concentrations of 0.43% were confirmed within the well, with flowing pressure hitting 1885 psi. The structure is believed to have a high quality reservoir as a result of the pressure experienced.
The first well meanwhile saw the production testing produce formation water at the helium interval equivalent to the second well. The result is a 10 meter interval has been defined for a gas/water contact and provides the firm with “increased confidence in defining the potential producible resources within the structure.”
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Following the results the firm is now conducting a pressure transient analysis of the data to establish the potential production rates of the wells and the extent of the reservoir. The firm is now in advanced discussions with an EPC partner for the construction of a prototype plant, which is to speed up the design of the Steveville production facilities.
The company is also in discussions with offtake partners, which will see the delivery of helium as early as 2022 from the property.
“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,” commented David Johnson, CEO of Imperial Helium.
The firm also noted that it currently has a cash balance of $6.6 million, or roughly $0.077 per share.
Imperial Helium last traded at $0.16 on the TSX Venture.
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