Desert Mountain Energy (DME) on Wednesday said it has found “significant” helium percentages in two new wells in Arizona, US.
Completing independent gas analysis on both of its exploratory wells, the State 10-1 and State 16-1, DME said the 10-1 well showed helium 7.1321% and the 16-1 well showed helium 4.0904%.
In a statement, DME said, “Based on normal accepted industry operation procedures, the company at this time and prior to further engineering and flow testing, would entertain a possible daily flow rate of between 4,100 and 5,600 MCFGPD based on aggregated production from both wells.”
“The company has compared these wells to the closest established and documented helium production located approximately 35 miles NE in the Pinta Dome Field.”
DME said it is not seeking to publish reserve estimates at this time, in part due to the fact that both wells have been completed in zones where there is currently no nearby production in Arizona from which to conduct accurate long-term reserve analysis.
“However, the company will be having an independent review and submit their findings and should the qualified person be unable to report without reservation on reserves data, he shall set out the cause of the reservation and the effect, if known to the qualified reserves evaluator on the reserve data or prospective contingent resources data,” a DME statement continued.
Helium reserves or resources?
In recent years, due to recurring shortages of helium and its increased commercial value, there has been an unprecedented amount of activity related to exploration for new helium sources. In an exclusive article for gasworld, geologist and petroleum engineering expert James R. Weaver discusses the dfferences between helium reserves and resources.
Read it here.