A newly identified world class helium asset.
The asset’s probabilistic prospective resources of helium, oil, hydrocarbon gas and CO2 have been estimated by Independent Qualified Reserves Evaluators Gustavson Associates LLC, of Boulder, Colorado.
The National Instrument 51-101 report covers the helium potential that could be recovered from the associated hydrocarbon gas resources. It also provides background information concerning production, infrastructure, use and history of helium, as well as an overview of additional resources present.
These resources are contained in three horizons with conventional traps and one continuous resource play. The potential helium resource has been calculated to be as high as 11.52 bcf (P10), which would meet current global demand for two years. This makes the potential discovery a significant one in the global helium market.
|Low Estimate (P90)||Best Estimate (P50)||High Estimate (P10)|
|PROSPECTIVE HELIUM RESOURCES*||3.51 BCF||6.66 BCF||11.43 BCF|
* Gustavson Associates LLC prospective resources of helium figures
Nearby Production and Testing
There is already substantial oil and gas production and testing in the surrounding area, including the following:
- Commercial oil with associated gas production is present two miles southwest of the subject property, in Grassy Trail Creek Field,
- Commercial CO2 production is present six miles west of the subject property in Farnham Dome Field,
- Oil has been tested in the Arco Chambers #1 well, which is located on the leasehold,
- Methane, CO2 and helium have been tested in the Sunnyside #1 well located less than a mile from the subject property, as well as the Cullen #1 well located on the leasehold,
- Methane and other gases have been tested in the Manning Canyon in a horizontal well drilled in 2009 located seven miles to the west of the acreage.
Located in prolific helium generating basin and close to key infrastructure.
The area is home to significant helium resources which is highlighted by government reserves being earmarked in the neighbouring counties of the Bruin Point Asset. Other key operators in the area include Newfields Exploration, Anadarko Petroleum Corporation and ConocoPhillips Company, to name a few.
Bruin Point has acquired 2D seismic data and has had it interpreted by Gustavson Associates. This line was used along with well control to define a faulted structure with two traps in three reservoirs and one continuous resource play. These have been assigned as probabilistic resources in the National Instrument 51-101 Report.
FEDERAL HELIUM RESERVE #1
- The assets are in close proximity to The Federal Helium Reserve #1 at Woodside in Emery County, Utah
- This area was set aside by the government in 1924
- Production has not occurred at Woodside since the set aside
FEDERAL HELIUM RESERVE #2
- Federal Helium Reserve #2 is located at Harley Dome in Carbon County, Utah
- This area was set aside by the government in 1933
- Production at Harley Dome has only recently started despite discovery of the deposit in 1925 - this discovery is actively being developed
A new facility to separate helium from other gases was announced in 2013 to be located in Carbon County, Utah, only around 2 miles from the Bruin Point asset. This facility is designed to handle future production from the nearby Harley Dome Field, as well as other nearby operations, such as the Bruin Point assets. Bruin Point aims to use this facility through transportation by truck using ISO containers, before ultimately piping the gas to the nearby processing plant.