Royal Helium Drill Stem Tests 120 Meters at Climax-4
- 2 Additional Climax Well Licences Applied For
- Ogema and Bengough Well Targets Finalized
SASKATOON, SK, Sept. 15, 2021 /CNW/ - Royal Helium Ltd. ("Royal" or the "Company") (TSXV: RHC) is pleased to announce that it has drilled Climax-4 well to a total depth ("TD") of 2,701 meters. The completions program is underway which includes analysis of core samples taken, Drill Stem Tests ("DST") conducted over a 120-meter continuous interval, and flow testing, all from the Regolith zone which has now been renamed Climax Nazare. This zone in Climax-4 had the highest and most consistently elevated helium shows to date on the Climax block. With the extended test work, completions and analysis is expected to take a further 30-45 days, the results of which will be press released once complete. With targets finalized at both Ogema and Bengough in southeastern Saskatchewan, spud dates will be announced once permitted and the drills are mobilized to the sites.
Based on the results to date at Climax, Royal also announces that it has expanded the development program for the Climax Group and has applied for 2 additional well licences on the block expected to be received within the next 2-3 weeks with drilling to follow.
The Climax-4 well was designed as a production offset to Climax-3 to specifically target the newly discovered Regolith zone. Upon initial core inspection, the new discovery zone is not a true regolithic zone, but a thick sequence of interbedded metasedimentary and igneous rocks previously unknown to this area. Gas tests, DSTs and bottom hole pressure tests show that this sequence is gas charged with consistent helium shows and extrapolated bottom hole pressures of between 3,951 psi to 4036 psi. Because of this and the strong association with the other helium zones above it, the primary target zone has been renamed the Climax Group with the lower part (Regolith) now referred to as Climax Nazare.
Andrew Davidson, President and CEO comments, "The findings at Climax have Royal and all of our partners very excited to get a full completions program underway over the next several weeks. The DSTs show a zone of about 70 meters (230 feet) of helium pay, 80% thicker than encountered in Climax-3. We are immediately expanding the Climax Nazare program by applying for 2 more well licences into a potentially large pool which seismic shows may cover over 30 square miles (30 sections). We are looking to immediately expand our drilling and completions teams so that we can be simultaneously drill testing some of the highest historic helium shows located in southeastern Saskatchewan while continuing the development at Climax Nazare without delay or compromise".
Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land in southwestern 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 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.
For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
Andrew Davidson, CEO, Royal Helium Ltd., 1 (306) 653-2692, [email protected]
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