Global Helium on Tuesday (25th May) said it has added an additional 37,100 hectares (91,675 acres) in the Vermillion Hills area in Saskatchewan for helium exploration.
It is believed the company has established a core area at Vermillion Hills, approximately 150 kilometres northeast of Swift Current. The new permit is contiguous to the southeast and increases our 100% working interest holdings in this area to over 122,000 hectares (302,000 acres).
Commenting on the news, Wes Siemens, President at Global, said, “This new acreage significantly expands our land position to the southeast within the helium fairway. We are excited about growing our position in this area and moving our prospects to the drill stage.”
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.