RE: Liberum on Friday - 5.3p price target19 Mar 2024 14:22
Thanks for the estimates. I was curious to know what an EWT actually involves - got the following from ChatGPT which is helpful - apologies for the length. Looks like this operation could take a few months:
An Extended Well Test (EWT) in the context of helium exploration is a phase in the exploration and development process aimed at assessing the viability of extracting helium from a specific well or reservoir. It involves conducting a prolonged period of controlled helium production from the well to gather crucial data regarding production rates, reservoir behavior, and other factors necessary for making informed decisions about the commercial viability of the helium resource.
Here's an outline of what an Extended Well Test typically involves:
Preparation: Before commencing the EWT, the well needs to be adequately prepared. This may involve installing necessary equipment such as valves, separators, and monitoring instruments. Safety measures must also be put in place.
Production: During the EWT, helium is produced from the well at a controlled rate. The rate of production may be adjusted throughout the test period to gather data on various parameters such as flow rates, pressure changes, and helium concentrations.
Monitoring: Continuous monitoring of various parameters is essential during the EWT. This includes monitoring helium concentrations in the produced gas, pressure changes within the reservoir, flow rates, and any other relevant data.
Data Collection and Analysis: Data collected during the EWT are analyzed to assess the reservoir's behavior, production characteristics, and overall viability for commercial helium extraction. This analysis may involve sophisticated techniques and modeling to understand the reservoir's properties and predict future production potential.
Decision Making: Based on the results of the EWT and the accompanying analysis, decisions are made regarding the feasibility of commercial helium production from the well or reservoir. Factors such as production rates, reservoir size, gas composition, and economic considerations are taken into account.
The duration of an Extended Well Test can vary depending on factors such as the complexity of the reservoir, the objectives of the test, and regulatory requirements. It may last anywhere from several weeks to several months. Typically, the test duration is long enough to gather sufficient data to make informed decisions about the commercial viability of the helium resource while also being practical in terms of time and cost