RE: Charles COS Analysis29 Nov 2024 14:43
What do you chose.?
Bluff and bluster.?
or the facts as laid out below👇🏻
Results
The Amsden formation, a secondary target in the Clink #1 well at Ingomar containing less than approximately 6% of the project P50 resource of 2.3Bcf helium, was perforated over 87ft from 3,885ft - 3,972ft, flowing 4,250 Mcf/d of raw gas on a 30/64" choke. Three samples of this gas were sent to Isotech Laboratories in Illinois for analysis and returned 84% Nitrogen, 13% methane, and with sub-economic helium grades.
At sustained flow rates of 4,000Mcf/day raw gas and a helium sales price of $500/Mcf production from the Amsden would generate pre-tax cashflow of circa $1,000,000 per well per year, using membrane units to upgrade helium concentrations prior to processing. This falls beneath the Company's definition of a commercial development for standalone production from the Amsden, but could generate useful additional cash-flow if produced alongside helium from the Flathead or Charles formations.
The results are contrasting to the 2.5% helium identified in the underlying Flathead formation, the primary target in the Clink #1 well, implying an excellent seal that is potentially containing the high-grade helium system beneath the Amsden, and that gas in the Amsden has migrated from a different source.
The Company is therefore keen to move rapidly on to testing the Charles formation which demonstrated the highest helium anomalies identified in Clink #1 with up to 672ppm He in drilling mud, excellent reservoir properties and strong gas effect in wireline logging. The Company will mobilise equipment to acidise the limestone reservoir with HCl to clear mud blockages and stimulate flow. Stimulated flow testing and appraisal will commence as soon as equipment and crew are available
Be savvy and follow the facts.
GLA