Royal Helium discovers large helium zone in Saskatchewan, shares up
Royal Helium Ltd. [RHC-TSXV] made a significant helium discovery at the Climax helium project in southwest Saskatchewan. Royal discovered a 39-metre contiguous helium-bearing zone at Climax-3 in the basal Deadwood Regolith which was a previously unknown helium bearing sequence.
The same Regolith zone was also intersected at Climax-2 and Royal has seismically mapped the Regolith over a total area of 32 km2 (12.3 mi2) (Prospective Area). Based on internal estimates, Royal estimates total helium in-place within the Regolith zone across the Prospective Area to be between approximately 2.5 billion cubic feet (Bcf) (low-case) and 6.0 Bcf (high case).
In addition, Royal will commence production planning shortly on Climax-1, with the intent of producing and monetizing each of the helium, CO2, and nitrogen gas streams discovered within the Souris River and Wymark zones.
The internal estimates of helium resource-in-place are:
High: 6 Bcf of helium for the Prospective Area, comprised of 0.5 Bcf of helium per square mile
Low: 2.5 Bcf of helium for the Prospective Area, comprised of 0.2 Bcf of helium per square mile
Completed and production tested in sequence, the zone returned gas analyses including the following: Helium: 0.55 – 0.65%; Nitrogen: 71.97 – 95.95%; Hydrogen: 0.02 – 14.97%; and Methane: 0.02 – 40.00%.
Andrew Davidson, President and CEO, stated, “We are exceptionally pleased with this discovery at Climax. The Regolith appears to be helium charged over a significant interval and, once the production methodology is determined, it has the potential to be one of the largest helium discoveries in Saskatchewan history. Entering this drill program, we were targeting conventional helium production, which we have found in Climax-1, Climax-2 and potentially Climax-3. We are now evaluating the completion methodology of the Regolith which may include horizontal drilling and/or fracture stimulation in order to maximize the productive capacity of this zone.”
Royal is focused on the exploration and development of primary helium production in southern Saskatchewan. With over 400,000 hectares of prospective helium lands held under permits, leases and applications, Royal is one of the largest helium leaseholders in North America. Located next to highways, roads, cities and importantly close to existing oil and gas infrastructure, Royal’s projects were methodically evaluated for helium potential for over two years, and have been vetted by helium experts, professional geologists and engineers.
In May 12 trading, shares were up $0.10 to $0.62 on a volume of 2,751,000.