SASKATOON, SK, April 6, 2021 /CNW/ - Royal Helium Ltd. ("Royal"
or the "Company") (TSXV: RHC) is pleased to announce that
initial gas sample test results have returned elevated and economic
levels of helium concentration from multiple formations at the
Climax helium project, with tests returning levels ranging from
0.33% to 0.94% from the Deadwood, Souris River and Duperow
formations. The company will now commence long term production
testing of the most prospective zones to confirm flow rates and
ultimately resource size.
The high graded production zones that are being tested range in
thickness from five meters to in excess of 30 meters, with the
ability to expand to even larger intersections. While these results
are preliminary in nature and require additional confirmation, they
do confirm the presence of economic helium grades on the Climax
project, along with indicating that nitrogen will be the primary
gas drive, though elevated levels of carbon dioxide are also
present in certain tests. To date, testing has been focused on
testing helium concentrations across the prospective zones with the
highest level of helium detected during the drilling process. This
initial concentration testing at Climax is expected to be completed
over the next 10 days, following which the Royal will begin full
flow testing and analysis which is expected to take an additional
30- 40 days.
Andrew Davidson, President and
CEO of Royal comments "We are pleased with these
initial results on our Climax helium project. Helium
detection during drilling identified multiple zones of
elevated helium in all three of the wells and follow-up
completions testing confirmed economic helium concentrations. We
look forward to the full flow testing results across all zones of
interest in each of the three wells to confirm resource size and
project commerciality. The fact that we have identified
elevated and economic helium concentrations across significant pay
zones as large as 30 meters speaks to the potential
of the Climax Project."
Helium is generally found and produced at low percentages. In
Saskatchewan, helium is being
produced currently at grades ranging from of 0.30% to above 1%. The
potential production zones encountered at Climax, combined with the
initial helium test results firmly support the continued testing
and development of the project.
With testing continuing on all wells, Royal
will report further results as they become available.
About 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.
For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.
Andrew Davidson, CEO
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This release includes certain statements that may be deemed
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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.