Desert Mountain Energy has said it encountered significant showings of helium across for formations in its fourth wildcat well in British Columbia.
Sharing the news on Friday (9th July), the company said a decision was made to set production casing, and it is currently in the process of cementing it into place.
Indications for its recent exploration indicates there is very limited background levels of gases other than nitrogen and helium present during drilling.
Desert Mountain Energy will now be scheduling the completion equipment and will not make further announcements with regards to this well until those completion procedures and testing are completed.
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.