So per the video there is a sandstone area and coal seam area not considered in the reserves/resources statement?
The reserves area has a current 2P of 13.6bcf of helium based on about 3% helium and flow rates of about 120mcf/d per well it appears?
Only about 20 wells thus far and we can see the plans for the wells appear to be along fault lines for the Phase Two drilling campaign. (See the map above)
The reserves area isn't square or rectangular so not easy to work out it's land area but let's says it's about 200 square km??
Then there is a sandstone area of about 110 square km per the video. If it has the possibility of wells at 850mcf/d and 12% helium that's massive potential by the look of it for helium?
Consider:
Reserves Area 200 sq km with 120mcf/d wells at 3% helium with a 2P = 13.6bcf helium
Sandstone Area 110 sq km with maybe 850mcf/d wells at 12% helium means potentially (110/200) x 13.6 x 7 x 4 = 209bcf of helium ???
** 7 times the flow rate of the reserves area
** 4 times the helium concentration of the reserves area
Coal Seam Area 500 sq km if it has for instance the same flow rates and helium concentrations as the reserve area (this is unknown?) that means potentially (500/200) x 13.6 = 34bcf of helium ???
** Note maybe calculations above are very basic and likely need to be altered for complex different geological factors in the different areas?
Bear in mind the entire globe only uses 6bcf per year of helium and today global shortages mean high prices. So if there is a motherload of helium in the sandstone area there may not be a rush to prove it up. The current plans from Phase 2 will capture about lets say 8% of the global helium market and real potential maybe Renergen could capture more of the market long term especially if drilling can prove up increases to the helium reserves. Noting thus far only about 20 wells have been drilled in a small area with about 300+ wells planned for Phase 2.
