SASKATOON, SASKATCHEWAN – November 16, 2021. Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) is pleased to announce that it has initiated the completions program at the Climax-4 helium well located in southwestern Saskatchewan. The program is designed to test reservoir production with enhanced gas flow and recovery rates from the large Nazare pay zone. The program is anticipated to run for 3-4 weeks followed by the completion of a resource estimation. Production and processing plans as well as offtake arrangements are ongoing and will incorporate the data from this completions program and will be announced as each are finalized.
Andrew Davidson, President and CEO of Royal comments, “Royal’s technical team together with geotechnical consultants Dr. Chris Hawkes, and AGAT Laboratories, and completions consultants Edge Engineering, and Element Technical Services, have a high degree of confidence in the completions program for the Nazare zone. While the Nazare discovery is new to the helium industry, our completions team has extensive experience in producing from these specific types of reservoirs. They have developed a plan with techniques used extensively in many natural gas reservoirs in Saskatchewan and elsewhere to produce gas via natural and hydraulic fractures within larger pay thicknesses. Upon successful production testing, the data will be compiled to form a resource estimate and ongoing plans for production and processing will continue to proceed”.
Stephen Halabura P.Geo., Vice President of Exploration, states that, “the lithology and mineralogy of the Nazare reservoir consists of a complex sequence of igneous granite rock interbedded with metamorphic metasediments and calc-silicates. The entire sequence is extensively fractured and produced a mixture of gases containing >0.65% helium over 70 meters during drill stem testing.”
The geotechnical program was comprehensive and evaluated 55 meters of Nazare from the Climax-4 wellbore. The laboratory testing conducted by AGAT Laboratories consisted of:
- Spectral gamma ray and bulk density
- White light photography and CT scanning of the entire core
- Porosity and permeability measurements
- Triaxial compression testing and acoustic measurements on full diameter and core plugs
- Direct shear testing
- X-Ray diffraction and thin section preparation and analysis
- Fluid analysis
Concurrent with the geotechnical program, Royal’s internal technical team, Dr. Hawkes and John Styles P.Eng. of Edge Engineering and Geosciences Ltd., worked closely with Element Technical Services to prepare this completions program, which is designed to enhance the flow capability of the natural, existing fracture network and most effectively produce the entire 100+ meter thick Nazare reservoir.
The Nazare completion at Climax-4 will have direct influence on how Climax-2 and 3 will be completed and produced as they both encountered the Nazare zone at the bottom of their wellbores. Climax-1 did not intersect the Nazare zone and will be completed as a conventional helium well in the zones it encountered. Details will be announced once determined and finalized.
Royal Helium Ltd.
Royal controls approximately 1,000,000 acres of prospective helium land in south-west and south-east 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.
For more information, please contact the Company.
Andrew Davidson
President and CEO
Royal Helium Ltd.
(604) 561-2821
[email protected]
Dean Nawata
VP, Corporate Development
Royal Helium Ltd.
1 (306) 653-2692
[email protected]
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