Business
Helium production commences at two further wells
Helium production commences at two further wells.
About this update from Mendell Helium Plc
[{"type":"text","content":"\n\n\n \n19 August 2024\n \nVoyager Life plc\n \n(\"Voyager\" or the \"Company\") \n \nHelium production commences at two further wells\n \n \nVoyager is pleased to announce that the Smith and Nilson wells owned by M3 Helium Corp. (\"M3 Helium\") are now in production and tied into the gathering system owned by Scout Energy Partners (\"Scout\"). Sales of helium and methane will generate revenue for M3 Helium, and the Company currently anticipates receiving these revenues on a monthly basis.\n \nM3 Helium owns a 100 per cent. working interest in the Smith and Nilson wells, both of which have been previously tested at high pressures capable of producing economic flow rates. The wells recorded respective pressures of 174psi (pounds per square inch) and 180psi respectively (in tests carried out by Precision Wireline and Testing). The tie in to Scout's infrastructure was concluded recently with production beginning almost immediately thereafter. Scout's gathering network is connected to the Jayhawk gas processing plant which produces methane, helium, nitrogen and natural gas liquids.\n \nThe Company expects that production levels will take a few weeks to stabilise, and at this point, helium content is anticipated to be in the region of 0.635 per cent., based on a non JORC compliant competent person's report previously prepared for M3 Helium by WSP. Management of M3 Helium are accordingly optimistic about the potential revenue capability from the wells.\n \nAs previously announced, Smith and Nilson are to the east of the core part of the Hugoton gas field in what is known as the transition zone. It is M3 Helium's belief that this lesser produced area could provide considerable upside to the company by accessing formations previously overlooked by other operators. \n \nM3 Helium's next project, which is already underway, is to bring its Rost well at Fort Dodge into production. As announced on 15 July 2024, this has been tested by Shamrock Gas Analysis, Inc. as containing 5.1 per cent. helium. \n \nNick Tulloch, Chief Executive Officer of Voyager, said: \"Bringing the Smith and Nilson wells into production is a significant step forward for M3 Helium. The Hugoton gas field is one of the best known sources of helium in the...