Royal Helium to Begin Second Multi-Well Helium Drill Program in Saskatchewan
SASKATOON, SK, June 10, 2021 /CNW/ - Royal Helium Ltd. ("Royal" or the "Company") (TSXV: RHC) is pleased to announce its extensive drilling, exploration and development work program in southern Saskatchewan with Climax-4 expected to spud in mid-July. Following the recently completed financing and the successful initial drilling program, Royal will immediately begin drilling and exploration programs focused on accelerating the growth of the Company's helium resources. The Company is currently budgeting for 7 new wells.
2021 Program Summary:
- Drill Climax-4 to target the Regolith discovery from Climax-3, expected to spud by the end of July
- Resumption of production testing at Climax-2 and Climax-3
- Continue production planning and facility design for Climax-1, 2 and 3
- Drill 6 new wells in SE Saskatchewan across three separate project areas. Drilling anticipated to commence summer 2021
Andrew Davidson, President and CEO comments, "With the exceptional investor interest in the oversubscribed bought deal prospectus offering, Royal is in a position to execute on a large drilling and exploration program to expand on the success of its first 3 helium wells. Our program is specifically planned to accelerate the growth of the Company with the goal of quickly becoming a helium producer. Royal is at an exciting juncture in its development - looking toward helium production from its first 3 wells, developing the new discovery of 2.5 to 6 billion cubic feet ("BCF") of helium in-place and accelerating growth with 7 new wells including an additional well specifically targeting the Regolith discovery zone".
At Climax, Royal will be drilling Climax-4 specifically targeting the Regolith zone discovered in the Climax-2 and Climax-3 wells. Climax-4 drill and production permitting is underway, and the well is anticipated to spud by mid-July. This well will be cored through the Regolith discovery zone to identify the optimal way to produce helium from this large reservoir.
In southeast Saskatchewan, Royal intends to drill its first set of wells at its Bengough, Griffin and Ogema blocks (the first land blocks of the "SE Project Area"). Planning is currently underway for this portion of the drill program consisting of the acquisition/re-processing of seismic data, completion of a tri-axial magnetic survey and detailed well target definition.
Alongside drilling new wells, testing will continue at Climax-2 and Climax-3 focused on the Wymark zone that reported elevated levels of helium that have not yet been perforated or production tested. This testing program, fully planned and costed within the previous program, is anticipated to last for approximately 10 days per well.
For Climax-1, Climax-2 and Climax-3, initial production testing and facility design specifications will be completed (Climax-1 already underway) with a plan to have these first 3 wells operational within six months of testing completion.
Royal Helium Ltd.
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.
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.
Please contact Andrew Davidson, the Chairman, President and CEO of the Company, Andrew Davidson, Royal Helium Ltd., 1 (306) 653-2692, [email protected]
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