RE: Helium Production from our Hugoton Wells19 May 2025 06:41
Helium Production from our Hugoton Wells
Peyton well: Is located to the south of Garden City, but west of Smith and Nilson, is the Peyton well. One of M3 Helium’s first wells, the Peyton well is in production and currently producing a return, net of all operating and administrative costs, of around $2,000 per month to the owners of the Peyton well. M3 Helium owns a 20% interest in the Peyton well. The well produces without the need for a pump. The Peyton well is only producing from a single formation, and three additional upper formations remain behind pipe and may be completed at any time.
The Peyton well is in the heart of the Hugoton gas field where wells have historically been reliable producers, with limited water content, but the area has seen more active production in the past and consequently M3 Helium’s management does not consider that potential reserves are as great as may be the case in the transition zone.
However, the consistent production and expected well life makes this region an attractive area in which to operate. While the interior of the field may have less potential than the transition zone, M3 Helium proposes to test a new approach to fracking that may improve the ultimate recovery of helium. This new approach is proprietary to Mendell Helium based on a deep understanding of prior frack designs inside the field, across several decades.
The reason why the Peyton well was only completed in a single zone, which is contrary to traditional practices by completing all zones at the same time, was to test a theory that elevated pressures may exist in this tested zone. Modern wells typically experience initial pressures of 40 psi or less, the Peyton well exhibited 86 psi initially which supports the thesis that additional gas resources may exist in the field over and above what is currently believed by the industry.
RKB
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