Helium processing business Paradox Resources has filed for bankruptcy.
The filing states that the company has assets of $50m to $100m and liabilities of $50m to $100m. The affiliates filing as co-debtors are Capital Commercial Development, Four Corners Energy, Four Corners Pipeline, Neuhaus Barrett Investments, Paradox Midstream, and Paradox Upstream.
The petition states that funds will be available to unsecured creditors.
Based in Texas, the Paradox Resources has been operating over 150 wells and 270 miles of pipelines on approximately 98,000 net acres in the Paradox Basin.
The company has been active in San Juan and Uintah Ccunties, Utah, Gunnison, Montrose and San Miguel Counties, Colorado. It is the owner of the Lisbon helium processing plant, located 20 miles north of Grand Gulf Energy’s Red Helium Project.
Read more: Grand Gulf Energy, Paradox Resources ink helium offtake agreement
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.
