RE: Background levels19 Aug 2024 09:10
Willy-
In helium exploration, the identification of a helium gas-show indicates a recorded increase in helium gas above the baseline levels, demonstrating presence of helium in the formation being drilled. The presence of a helium gas-show is a positive indicator for further exploration, as it shows that the formations contain anomalously high levels of helium, which is a valuable and sought-after gas for various high-tech and industrial applications.
However, the presence of a helium gas-show alone does not confirm that the helium can be economically extracted. Further testing and analysis are required to determine the commercial viability of the helium system, including wireline logging to determine formations with free-gas potential and flow testing to determine grade, flow rate, and production profile.
Gas-shows are reported as multiples over background level, however the intensity of a gas-show is dependent on several factors including the diameter of the bit, rate of penetration, mud weight, mud flow, and reservoir characteristics of the formation being drilled. Therefore, there is no correlation between the reported scale of the anomaly and the grade of helium present within the formation.
There is no correlation between the intensity of a helium gas-show and the grade of helium within the formation. Nor is there a way to determine from a gas-show if the helium anomaly is associated with free-gas or a gas-saturated-brine. Wireline logging will be conducted on completion of the Clink #1 well to identify reservoirs with free gas for extended flow testing. A discovery may be declared only after samples of gas have been recovered to surface and analysed for helium.