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.