Drilling of second helium well commenced December 6, 2021 following receipt of well license
Updated corporate presentation posted to website including new maps showcasing Steveville Structure and Steveville East
CALGARY, Alberta., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Imperial Helium Corp. (TSXV: IHC) (“IHC” or the “Company”), a growth-oriented company focused on advancing commercialization of our Steveville, Alberta helium discovery asset (the “Steveville Asset”), is pleased to confirm that drilling has commenced on the Company’s second future producing helium well on the Steveville Structure, IHC-Steveville-3 at 12-12-020-12W4.
Drilling of IHC-Steveville-3 Commenced December 6, 2021
Following receipt of the well license for the Company’s second future producing helium well, IHC-Steveville-3 (12-12-020-12W4) was spud on December 6th. To date, IHC has drilled two wells, IHC-Steveville-1 and IHC-Steveville-2, which have further defined the geological structure and validated the superior reservoir quality that was first encountered by the Steveville Discovery Blow-out well in 1940. With an improved understanding of the Steveville Structure provided by previously drilled well data, log analysis of existing wells, and seismic interpretation of area geology, IHC selected the location for IHC-Steveville-3. The well is being drilled on a second structural high point, similar and connected to the original Steveville Discovery Blow-out.
IHC plans to drill IHC-Steveville-3 to a total depth of approximately 1,680 metres over an estimated 20 to 22 days, taking into account the Christmas holiday. The IHC-Steveville-3 well will twin the existing 16-11-020-12W4 well, originally drilled in 1974. The formation characteristics of the identified production interval in the 16-11 well strongly parallel those found in our IHC-Steveville-2 well, enhancing the probability for success. Subsequent to drilling, logging and casing of IHC-Steveville-3, we expect to proceed with a minimum of two production tests, in multiple zones, over an eight-to ten-week period.
The IHC-Steveville-2 well will be our first producing well once brought on-stream, which is anticipated by the end of 2022. Independent production test analysis indicates that IHC-Steveville-2 is capable of producing 5-8MMcf/d, at sustained rates, for more than three years. Based on this analysis, after three or more years, we anticipate the well would exhibit normal natural decline rates of approximately 15% annually over a 15-plus year field life. IHC is also in the process of securing an offtake agreement, which will represent another critical milestone on IHC’s path to producing commercial volumes of helium before the end of 2022, further details of which will be provided as agreements are finalized.
Updated Corporate Presentation
We have updated IHC’s corporate presentation, now available on our website. In addition to new maps and details regarding the Steveville Structure, we introduce our Steveville East Structure, which represents a future potential area for appraisal and development. The updated presentation provides details on IHC’s recent achievements coupled with our outlook through to commercialization in Q4 2022, which we expect will be achieved in an unprecedented1 20 months following our initial public offering. We encourage interested parties to visit the site and download our presentation at https://imperialhelium.ca/investors/.
Additional Background on the Steveville Structure
IHC’s Steveville Structure property is situated over a large basement dome feature with four-way closure. The property is approximately 200Km east of Calgary and 40Km northeast of Brooks where highways 544/876 cross the structure, providing easy access for drilling and development. The property includes 24,635 hectares (95 square miles) of land leased from Heritage Royalty Resource Corporation, with rights for natural gas (including helium) below the base of the Big Valley and Nisku formations.
In the winter of 1940, the first deep well to be drilled in the area was 13-22-020-12W4, which, owing to a mechanical failure on surface, resulted in the ‘Steveville blow-out’. Four subsequent wells that were drilled exploring for hydrocarbons, 08-22-020-12W4 (1947); 14-11-020-11W4 (1953); 16-11-020-12W4 (1974) referenced above; and 01-24-020-11W4 (2002) confirming both the Steveville Structure and the Steveville East Structure. IHC has acquired 3-D seismic to provide an improved understanding of the basement structure.
About Imperial Helium Corp.
Imperial Helium Corp. is focused on the exploration and development of helium assets in North America, initially through the anticipated commercialization of its Steveville, Alberta helium discovery. With increasing helium supply shortfalls around the world, the Company is committed to becoming a supplier of helium to help meet the needs of the many critical industries which rely on this irreplaceable resource, including healthcare, electronics and semiconductors as well as aerospace and leak detection. Driven by Canadian geoscience and engineering expertise and supported by strategic alliances with key players in the helium and capital markets ecosystem, IHC intends to leverage its proprietary well database to support longer-term growth. IHC is based in Calgary, Alberta, and listed on the TSX Venture Exchange under the symbol “IHC”. To learn more about the Company and expand on the subject of helium, please visit www.imperialhelium.ca.
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Chief Executive Officer
Chief Financial Officer
Forward-Looking and Cautionary Statements
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “will” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning: drilling activities; discovery activities including re-discovering and capturing the Steveville blow-out; and the business plan of the Company, generally, including helium development and extraction. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Imperial Helium. Although Imperial believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Imperial can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the helium industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the helium industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The forward-looking information contained in this press release is made as of the date hereof and Imperial undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
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1 Based on management’s assessment of publicly available sources.