Desert Mountain Energy has today (27th July) said it has mobilised the competition rig, additional testing equipment and associated personnel to undertake the completion and flow testing of its fourth wildcat well in British Columbia, Canada.
The announcement follows the helium exploration company earlier this month stating that it had encountered significant showing across four formations at the well.
On the latest development, Robert Rohlfing, CEO of Desert Mountain Energy, said, “We are pleased to be using some of the newest and most cutting-edge tools for the downhole completion portion of this well.”
“We look forward to expanding the application of these tools along with other completion equipment and improving the technological database.”
“The library of detailed information derived from our drilling programs will expand the company’s understanding of specific geological formational environments which produce helium.”
Proven vs Prospective reserves
There are many different terms and phrases to get accustomed to in the helium business, but few as significant as ‘proven’ and ‘prospective’ reserves when it comes to the future potential and validity of a helium project.
Statements often abound about the prospective reserves of a new helium discovery, while others will cite the proven reserves. So, what do they mean and what’s the difference?
Prospective Resource estimates are developed based on a set of assumptions provided to a geological consultant, assumptions which can be highly optimistic.
These figures can generate great scope for future capacities, but such estimates of prospective resources can and often are obtained before any drilling activity has even occurred at the site in question.
Proved Reserves, however, are considered almost definite. These are, as the name implies, proven and more precise than estimates alone. In fact, most investment decisions are based on something called ‘2P Reserves’ – which means Proved + Probable.
It is these proven reserves that are, therefore, often considered to be the realistic hallmark of a successful helium exploration project.