Initial results encouraging with significant helium shows from multiple zones
SASKATOON, SK, Aug. 16, 2022 /CNW/ – Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) is pleased to report that its Val Marie-1 helium exploration well has reached its total depth of 2,596 metres. Mass spectrometer and gas chromatography readings encountered significant helium shows with multiple intervals ranging from 5 to 10 meters. Numerous zones will be completed and tested within the Devonian and the upper, middle and lower Cambrian Deadwood formations. The prospective intervals will be completed and tested along with the Ogema testing this fall. Royal looks forward to providing further updates and results as completions and testing are concluded.
Andrew Davidson, President and CEO of Royal, commented, “Val Marie-1 was drilled into the northern extension of the Bowdoin Dome, a large structural feature straddling Saskatchewan and Montana. The Bowdoin Dome has been successfully drilled for helium in Montana, so we are pleased to find multiple intervals of elevated helium readings aligned with the three main formations where we have helium bearing rocks at Climax and Ogema. While we work on putting the Climax and Steveville wells on production, we look forward to testing and advancing Val Marie and Ogema.”
Shayne Neigum, Manager of Well Operations, added, “We are pleased to find that the Devonian horizons showed significant increases from background levels with the mass spectrometer, as well as our well logs, indicating analogous gas bearing strata with very similar petrophysics to North American Helium’s producing wells. This is in line with our expectations that the Bowdoin Dome is a major source and gas migration driver for the helium produced in Saskatchewan. We look forward to completing and flow testing these stacked shows within the Devonian and Cambrian horizons.”
“Drilling this helium exploration well has qualified two helium permits at Val Marie to now be converted to 21-year leases for Royal. Whilst the objectives of this drilling program were aligned with the goals of the previous programs at Climax and Ogema, the use of directional drilling to explore both permits with one wellbore was unprecedented and a first within the industry.”
Royal controls over 1,000,000 acres of prospective helium land in southern Saskatchewan and southern Alberta. 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 in close proximity to 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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This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.
SOURCE Royal Helium Ltd.
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