Business
Helios Two Eagle Test and Acreage Expansion
Helios Two Eagle Test and Acreage Expansion.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \nRNS Number : 5576D Highlands Natural Resources PLC 01 February 2018 \n\n1 February 2018\n \nHighlands Natural Resources plc ('Highlands' or 'the Company')\nHelios Two Eagle Formation Test and Expanded Acreage Position\n \nHighlands, the London-listed natural resources company, is pleased to report natural gas production rates which intermittently peaked at up to 216 thousand cubic feet per day (\"Mcfpd\") from Helios Well 5-52 16-22. This follows a successful test of the Eagle Formation (the \"Eagle Test\") at its Helios Two natural gas and helium project in Montana. This test represents an important step towards commercialization of Highlands' growing land position in Montana which, following recent federal lease auctions, currently stands at 221,973 acres. This test also demonstrates the ability of hydraulic fracturing to increase production from the Eagle Formation, and is a step towards potentially commercializing the widespread Eagle Formation as a natural gas resource play.\n \nSummary\n· Helios Well 5-52 16-22 was stimulated in the Eagle Formation using a combination of water and foam-based stimulation techniques deployed into three stages\n· Two of the three stages were opened for production testing while the third stage will be opened later in mid-2018 to observe the productivity impacts of long-term clay hydration\n· Gas production rates peaked at equivalent to 216 Mcfpd marking the highest production rates yet achieved in the Helios Two project \n· 116,488 acres in Carter, Custer and Fallon counties acquired through federal lease auctions bringing total acreage in Montana to 221,973 acres\n· Competent Person Report in January 2017 indicated a \"best estimate\" NPV10 of US$341 million for the natural gas development project alone from a 69,120 acre area and an additional 2.1 billion cubic feet of net attributable helium for this same area (not included in the NPV)\n· Although the purpose of this exercise was to examine natural gas production rates in the Eagle Formation only, analyses in January 2017 performed at two independent gas laboratories confirmed the presence of 0.31% to 0.33% helium at Helios Two in the Muddy Formation - similar to...