Saskatchewan-based primary helium exploration and development company Royal Helium Ltd. (RHC:TSX.V; RHCCF:OTCQB), announced in a news release that "it has received the drill license for its fourth helium well on its Climax land block located in southwestern Saskatchewan."
Royal Helium indicated that the Climax-4 well, which is designed as a production offset to its Climax-3 well, is scheduled to spud on August 7, 2021. The company explained that the Climax-4 well is being drilled in order to target the new Regolith helium discovery zone with the goal of producing helium found in formations proximal to the Climax-3 location.
The firm stated that it expects drilling will last around 14 days as it drills to a total depth of about 2,700 m. The company said it also plans to deploy a service rig to run completion testing and production analysis in a process that it anticipates will take approximately four to six weeks.
Royal Helium's President and CEO Andrew Davidson commented, "We are pleased to have multiple, high-impact activities underway over the next several weeks and months—getting the Climax Regolith reservoir defined and on production and drilling six new wells over three separate land blocks in southeastern Saskatchewan where the highest historic helium concentrations have been recorded. Panther Drilling is mobilizing to site today with a view to spudding the well on Saturday."
Royal Helium advised that it holds permits and leases giving it control over 1,000,000 acres of prospective helium-producing land in southern regions of Saskatchewan. The company noted that a significant portion of its land package lies within close proximity of existing helium-producing locations. The firm added that each of its properties offers ready access to roads, highways and nearby cities, and each is situated near existing oil and gas infrastructure.
Royal Helium mentioned that its goal is to become a leading North American producer of helium to take advantage of stable and rising prices and growing worldwide demand for this high-value commodity.
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