Royal Helium drills 10 metres of 0.76% helium at Ogema-1, Saskatchewan

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Royal Helium Ltd. [RHC-TSXV] reported that its Ogema-1 well located approximately 80 km west of Weyburn in southeastern Saskatchewan has hit helium in three separate zones including the potential extension to the Nazare zone identified 250 km west at Climax in southwestern Saskatchewan.

Royal has successfully drill stem tested (DST) the Earlie zone showing, which returned 0.76% helium over a thickness of 10 metres (33 feet) at its first helium well in southeastern Saskatchewan. A service rig has been mobilized to begin completions and production testing at Ogema-1 to assess longer-term flow rates and pressures in the Earlie zone, followed by Deadwood and Nazare once completions data are received from the Climax block. All results will be reported as they are received.

Andrew Davidson, president and CEO, commented: “We are pleased to report Royal’s highest helium cuts to date over significant intervals from Saskatchewan’s first dedicated helium well drilled in southeastern Saskatchewan. Our initial indications are that Ogema-1 will be completed as a conventional helium well and we look forward to sharing results over the next few weeks. It is certainly noteworthy that we encountered what appears to be the Nazare zone, first discovered by Royal at Climax more than 250 km southwest of Ogema. The implications on the potential lateral extent of our helium-bearing lands are significant and far exceed our expectations. The end of our first drill year is setting up to be an exciting time for Royal and its shareholders with news flow from Ogema-1, preliminary test results from Ogema-2 and results from completions at Climax/Nazare all expected before year-end.”

The Ogema-1 well was drilled to 2,923 m and encountered elevated helium shows in the Deadwood, Earlie and Nazare sequences. DSTs of the Earlie interval provided samples that tested up to 0.76 per cent helium with reservoir pressures of 27 MPa and flow pressures up to 12.3 MPa. A service rig has been mobilized to clean, complete and production test this zone to assess longer-term flow rates and pressures. Results will be released as they are received.

Testing also appears to confirm a Nazare zone at Ogema-1, with similar reservoir characteristics as the Nazare zone at Climax, containing elevated concentrations of helium. Completion of this zone will follow on the results of the Nazare completion at Climax which are expected within the next two weeks.

Royal Helium controls over one million acres of prospective helium land in southwestern and southeast Saskatchewan. All of Royals’ lands are in close vicinity to highways, roads, cities and, importantly, close to existing oil and gas infrastructure, with a significant portion of its land near existing helium-producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high-value commodity.

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