I'm trying to wrap my head around how significant it is that the current reserves/resources statement from Sproule does not apparently include:
1. The 110 square km of sandstone with 12% helium recorded there (4 times the 3% helium in the reserves area)
2. A further coal seam area of 500 square km where methane and helium are being produced from one well thus far.
I think the current reserves are just 14% of the land area and in the middle of the Virginia Gas field as that's where Renergen bought some land to locate the pilot plant. At a guess Sproule has incorporated a few wells near the middle of the field in a small area with 3% avg helium and going by the 1 Nov 2021 ann flow rate average of only 120,000 scf/day.
Now digging into the sandstone with 12% helium maybe that has 850,000scf/day flow rates per a Dec 17 2019 announcement.
So imagine the upside to the helium reserves if it does indeed have four times the helium concentration and seven times the flow rate in the sandstone area!
So 120,000 scf/d at 3% is 3,600 scf/day of helium from a well. Whilst 850,000 scf/d at 12% is 102,000 scf/day of helium!! My assumptions and calculations could be wrong but if there is an area with 12% helium and much higher flow rates then there could be an absolute monster amount of helium in that sandstone area?
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